UK court: PS2 is no computer

[Spartan_X]

UK court: PS2 is no computer

British tax court rules that Sony's current-gen console is a games device, not an 'automatic data processing machine'; multimillion euro rebate quashed as a result.

It's official: The PlayStation 2 is not a computer--in the UK, anyway.

A legal argument involving duty paid by Sony on PlayStation 2 imports into Europe has finally been resolved by a UK Court of Appeal, although it's not good news for the console giant. Sony had hoped to claim up to 50 million euros in a form of rebate based on its description of the console's functionality, but the latest appeal has been overturned.

The row came about in 2001 and centres on European legislation that deals with taxes levied on goods imported into the European Community. Each type of product that lands in Europe must be classified under a specific code, and that code defines the amount of duty to be paid.

When the PlayStation 2 started shipping in 2000 it was classified by customs authorities under subheading 9504 10 00 as 'video games of a kind used with a television receiver'. This meant that Sony was required to pay a 1.7 percent duty in 2001, 1.1 percent in 2002, and 0.6 percent in 2003, adding up to a total of around 50 million euros.

Since January 2004, the level has been set at zero, but Sony contested the decision to classify the PlayStation 2 under that particular subheading, maintaining instead that it should have been imported under 8471 10 00 and classified as an 'automatic data processing machine', a code that would have levied no duty at all. The view generally held on the matter is that the difference between the two codes roughly defines the difference between consoles and computers--given that the PlayStation 2 is 'not freely programmable' it is not classed as a computer and therefore falls under the 9504 code. After an initial ruling against Sony's claim by the VAT and Duties Tribunal in October 2004, the company appealed, and now that appeal has also been dismissed.

Lord Justice Chadwick, presiding over the case, had some harsh words for the appellant, stating that the case filed went 'beyond what can be regarded as acceptable written advocacy: it exceeds the bounds of propriety'. He was referring to 'repeated aspersions that are cast in that document on the intellectual honesty of the High Court Judge from whose decision this appeal is brought'. Sony's appeal text had stated that the judge 'often completely misrepresented the text of documents', 'deliberately misinterprets part of the review decision', and accused him of 'trampling over the evidence in which the High Court has allowed itself to indulge'. However, the Lord Justice's comments were effectively a rap on the knuckles for Sony's counsel in the case and have no bearing on the ruling itself, nor do they reflect on Sony as a company.

According to Struan Robertson, technology lawyer with Pinsent Masons, the ruling shouldn't have any effect on the imports of future consoles because the levy on both codes now stands at zero. It's an important point given the forthcoming launch of the PlayStation 3, which Sony executives have repeatedly referred to as a full-fledged computer.

An official statement from Sony said, 'At present, SCEE [sony Computer Entertainment Europe] is considering the implications of the judgment in detail and will decide what further action to take in due course'.

Source: GameSpot

[spenser.d]

So maybe this is why they keep saying the PS3 is a computer and not a games console. I guess they figure they can make even more off the EU market this way. I guess we'll have to see if the UK agrees that the PS3 is a computer and what Sony has to say about that.

-Spenser

[Japlabot]

Get lost Sony. The claim that it the PS2 is a is an 'automatic data processing machine' is dishonest because that definition was not intended to represent game consoles, and they are just trying to find loopholes. They've paid the tax, and they were still successful in the market. Now let it go.

[WelshBluebird]

gotta agree with the courts on this one - for gods sake -without third party things, the only thing the PS2 can do is play games, play DVD movies, and play music CD's. The orignal xbox is more of a computer than the PS2!!

The only time I think the PS2 can be classed as a computer, is when it is being used with the PS2 linux kit.

Although, if sony do include / have a proper linux distro with the PS3, then IMHO, it would be classed as a ccomputer

[Bhav]

Of course it's not a PC - any suggestion otherwise is plain ridiculous.

[ReAnimation]

I thought Sony got around this by including that YaBasic programming language on the demo disc that you got with the PS2?

Do they not bundle that on the discs anymore?

I know it was all but useless, but I thought it was including the Yabasic program that they used to class the PS2 as a computer and dodge paying so much import duty on PS2's.

[spenser.d]

Of course it's not a PC - any suggestion otherwise is plain ridiculous.

o.O I never woulda thought you'd call your beloved Sony ridiculous...hell, they're the ONLY one's saying it's a computer. :rofl:

-Spenser

[Bhav]

Yes I am calling my "beloved" Sony ridiculous for suggesting the PS2 is a PC.

Has your e-penis enlarged? :rolleyes:

[Pc_Madness]

I wonder how much in legal fees Sony wasted? :p

[MLIFE]

They would have saved quite a bit on import duties if they won. Wonder how well they will do with the PS3 as after all every console is pre loaded with *nix, but its main goal still remains to be a console.

As the -ps3 wont fall directly under 'not freely programmable'.

[Nigriv_LV1]

Is "data processing machine" the only description of the code? This is funny because even a SNES is a "data procesing machine"

Cartridge contains data. SNES has the technology to process data. Mario jumps on goomba. :bounce:

[Orange]

It's a console.. That's it.

[Nigriv_LV1]

Wouldn't my computer be a standalone console?

[PL_ Veteran]

Wouldn't my computer be a standalone console?

No, it's multi-purpouse

[Nigriv_LV1]

No, it's multi-purpouse

so is my playstation

[John Veteran]

so is my playstation

So is my calculator; it can add, subtract, multiply, and divide! :rofl:

In all seriousness though, a game console isn't nearly as "multipurpose" as a PC. With a PC, I can send emails, browse the web, play games, use office programs, design graphics, and more.

Edited June 29, 2006 by John

[Spartan_X]

So is my calculator; it can add, subtract, multiply, and divide! :rofl:

In all seriousness though, a game console isn't nearly as "multipurpose" as a PC. With a PC, I can send emails, browse the web, play games, use office programs, design graphics, and more.

with the PS you can kill giant crabs by hitting their weak points and deal massive damage... :devil: :laugh: :rofl: :p :shifty: :whistle:

[Nigriv_LV1]

the post above me is hella funny in some ways.

talks about sony while having a picture of mario(a nintendo thing) while having an XBox theme avatar and siggy...

wha'bout this?