There is one great thing about America – you can sue just about anyone for anything, although whether your case will actually bear any fruit or not is another matter altogether. Well, Microsoft must have followed in Sony’s footsteps, where the latter was the first organization that placed a “no sue” clause as part of its terms of service in September, where Electronic Arts quickly followed suit after that. Well, Microsoft has caught on in the game, and their latest Xbox 360 Metro update will come with a new terms of service agreement that requires your agreement before you are able to proceed – and in section 18.1.4. Binding Arbitration, you can check out what it says after the jump.
18.1.4. 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.
To put it in a nutshell, you can’t drag Microsoft to court, and this particular agreement is binding only for those living Stateside. If you’re living in the land of the free and home of the brave, then there is a way out of this clause – contact Microsoft within 30 days of signing the new terms of service agreement, and you are exempt from this clause.