New Xbox Live terms prevent class action lawsuits against MS

Platform holder seeks to settle 'disputes' without legal action

New clauses in the Xbox Live Terms and Conditions have been added to prevent class action lawsuits being taken out against the games giant.

The changes state that disputes should be settled with "informal negotiation".

Sony recently made similar 'no suing us' changes to the Ts&Cs of the PlayStation Network, after being hit with dozens of class action lawsuits for this year's major PSN security breach.


Here are the new Terms in full:

18.1.4. Binding Arbitration. If You Live In The United States, You And Microsoft Agree That If You And Microsoft Do Not Resolve Any Dispute By Informal Negotiation Under Section 18.1.2 Above, Any Effort To Resolve The Dispute Will Be Conducted Exclusively By Binding Arbitration In Accordance With The Arbitration Procedures In Section 18.1.7 Below. You Understand And Acknowledge That By Agreeing To Binding Arbitration, You Are Giving Up The Right To Litigate (Or Participate In As A Party Or Class Member) All Disputes In Court Before A Judge Or Jury. Instead, You Understand And Agree That All Disputes Will Be Resolved Before A Neutral Arbitrator, Whose Award (Decision) Will Be Binding And Final, Except For A Limited Right Of Appeal Under The Federal Arbitration Act. Any Court With Jurisdiction Over The Parties May Enforce The Arbitrator's Award.

The Only Disputes Not Covered By The Agreement In Section 18.1 To Negotiate Informally And Arbitrate Are Disputes Enforcing, Protecting, Or Concerning The Validity Of Any Of Your Or Microsoft's (Or Any Of Your Or Microsoft's Licensors') Intellectual Property Rights.

18.1.6. Class Action Waiver. You And Microsoft Agree That Any Proceedings To Resolve Or Litigate Any Dispute, Whether In Arbitration, In Court, Or Otherwise, Will Be Conducted Solely On An Individual Basis, And That Neither You Nor Microsoft Will Seek To Have Any Dispute Heard As A Class Action, A Representative Action, A Collective Action, A Private Attorney-General Action, Or In Any Proceeding In Which You Or Microsoft Acts Or Proposes To Act In A Representative Capacity. You And Microsoft Further Agree That No Arbitration Or Proceeding Will Be Joined, Consolidated, Or Combined With Another Arbitration Or Proceeding Without The Prior Written Consent Of You, Microsoft, And All Parties To Any Such Arbitration Or Proecceding.

[ SOURCE: Via Kotaku ]