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Sony under fire for change in licensing agreement


According to the BBC, a class action lawsuit has been filed in California against Sony, alleging the company changed the terms and conditions for using its PlayStation Network by adding a new clause that takes away users' rights to collective redress.

The change in terms and conditions is called a "no-sue," which requires users to arbitrator when seeking legal action against the company. It also is an effort to prevent users from joining together in a lawsuit against the company, said the news source.

However, Sony believes the changes to its licensing agreement are merited, with one of its spokesman telling the BBC that that company chose to make the changes after the U.S. Supreme Court clarified the relevant law.

Sony is also facing heat from Anonymous, the hacker group that broke into and stole personal information from the Playstation Network in response to Sony's lawsuit against hacker George Hotz, said Complex Media.

The group recent reached out to Sony in a video, saying it will attack the company again, due to its support of the Stop Online Piracy Act, said the source.

While Sony is a huge multinational corporation, smaller businesses can learn from this situation and invest in a professional liability insurance policy. A good policy will protect against a variety of lawsuits and other claims that can arise, given the increasingly complex world and unforeseen threats facing businesses in the 21st century.

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