Sony Denied $60 Million Rebate in PlayStation 2 Ruling
- June 20, 2006 16:30 PM PST
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In a recent ruling by the English court, the PlayStation 2 has been officially deemed as not a computer, putting to rest Sony's legal action that argued otherwise.
It can play music, movies, and games--but don't call the PS2 a computer.
For five years, Sony attested its PlayStation 2 should be classified as a "digital processing unit"--or computer--instead of a game console. Having the claim be approved would have resulted in Sony not paying a European Union import charge, which was mandatory between 2001 and 2004 for all gaming systems.
Computers were exempt from the import charge at the time.
The ruling denies Sony a hefty 50 million euros (61 million dollars) rebate for the import charges it incurred during the legal battle.
In a report from Reg Hardware, "Sony was the sole importer of the PS2 into Europe and told the court that most imports came via Holland. Because sales were not as high as expected, the company had to absorb the 6.60 pounds [12 dollars] cost of the import duty itself rather than pass it on to consumers."
The residing judge in the case also had some stinging words for Sony's defense. "In my view the skeleton argument filed in this court on behalf of Sony goes beyond what can be regarded as acceptable written advocacy: it exceeds the bounds of propriety."
