Sony Importer Lik-Sang Shuts Doors

In what can only be perceived as an official raising of the white flag, the Hong Kong-based retailer Lik-Sang, which had earlier made promises on its Web site that European customers would be able to order Sony PlayStation 3 consoles this November instead of having to wait until February or later, has ceased business operations, effective immediately.

Last Thursday, a British High Court ruled that Lik-Sang's sales of Sony's PlayStation Portable to the UK were unlawful, but surprisingly not because they violated global shipping laws or regulations. As the Financial Times reported, Judge Michael Fysh ruled that Lik-Sang had no legally established "trading presence" within Britain or anywhere else in the European Economic Area. As a result, it might not have been legal for Lik-Sang to do any kind of business there, let alone sell a game console to a country without Sony's license.

While the case was ostensibly about the PSP, the effect of the decision affects everything Lik-Sang sold in the UK, including advance sales of the PS3. Last October 3, Lik-Sang began taking pre-orders of PS3 with a "no money down" promotion.

"No need to wait for the department store next door to finally get its stock a year later," read Lik-Sang's promotion, which is now clearly shut down along with every other promotion. "The price at Lik-Sang.com will remain $0 until we have secured the best possible purchase prices, as many units as possible, and until further details emerge from our suppliers all around the world."

Sony's response was indisputable, as indicated by its statement to GamesIndustry.biz last week: "The law is clear; grey importing PS2, PSP or PS3 into the EU, without the express permission of [Sony Computer Entertainment] is illegal. Therefore, we will utilize the full scope of the law to put a stop to any retailers who chose to do this."

As Lik-Sang noted on its Web site this morning, the close of its worldwide business could actually have a detrimental impact on Sony consoles sales in Asia, although it's difficult to imagine any gamer deciding not to purchase a PS3 because his favorite retailer has shut its virtual doors. Still, from Lik-Sang's perspective, Sony has assumed the role of Darth Vader, destroyer of worlds.

"It's the beginning of the end...of the World as we know it," stated Lik-Sang's former marketing manager, Pascal Clarysse, this morning. "Blame it on Sony. That's the latest dark spot in their shameful track record as gaming industry leader. The Empire finally 'won', few dominating retailers from the UK probably will rejoice the news, but everybody else in the gaming world lost something today."

Clarysse argued that Sony's win in court last week could set the stage for any retailer, anywhere in the world, to stop the shipment of anything it manufactures within a region foreign to it.

Judging from Judge Fysh's comments, though, that wasn't the real problem. Without a "trading presence" in the UK or EEA, he ruled, the retailer should not have been selling anything in that territory without its manufacturer's consent.

The company promises to refund its former customers for all pending orders, although for those pre-orders, there may be nothing to refund anyway.