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Speech Graphics ups price from $1000 to $35000/yr after revoking perpetual licenses; TOTAL SCUMBAGS!

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Speech Graphics ups price from $1000 to $35000/yr after revoking perpetual licenses; TOTAL SCUMBAGS!

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432 segments

0:00

Hello. Are you ready for today's episode

0:01

of your favorite show? That's right.

0:03

We're back for another episode of how

0:05

you're getting I'm your host,

0:06

Louis Rossmann, and today we're going to

0:07

continue to hammer home why it is

0:10

breaking DRM, in my opinion, is

0:11

completely justified, moral, and should

0:13

never be a violation of federal law.

0:16

Today, we're going to be talking about a

0:17

piece of software called FaceFX. FaceFX

0:20

is a piece of software that costs about

0:21

a thousand dollars, give or take. It's

0:23

like $988 and some cents. And this was

0:26

software that allows you to animate

0:27

somebody's face based on audio. So, if

0:30

you take a picture of my face and you

0:31

want to put it into a video game and you

0:32

have me saying certain things, it'll

0:34

have my face animate based on the audio

0:36

that it hears, which is pretty useful. A

0:38

lot of solo game developers are using

0:40

this because it cost about a thousand

0:41

dollars, and it was pretty useful. And a

0:43

user recently got a communication saying

0:46

that his perpetually licensed FaceFX

0:48

Studio Professional had that had been

0:50

bought for $988.68

0:52

was going to stop working on November

0:54

30th, 2026. And that continued use of it

0:57

would require FaceFX Unlimited at

0:59

$35,000 per year, or FaceFX Runtime at

1:02

$25,000

1:04

a platform. They said that they

1:06

understand that as a solo developer,

1:08

these costs may not fit within your

1:09

budget. Your FaceFX Professional license

1:12

>> [laughter]

1:13

>> I mean,

1:14

yeah, I paid a thousand dollars for it.

1:16

And they're not saying, "Okay, you have

1:17

to pay a thousand dollars again."

1:19

They're not saying that you have to pay

1:20

two thousand dollars again. They're not

1:22

saying you have to pay a thousand

1:22

dollars a year. They're saying, "You

1:24

know that thing you paid a thousand

1:25

dollars for once? How would you like to

1:27

pay twenty-five to thirty-five thousand

1:28

dollars a year?

1:30

And if you don't, we're going to take it

1:31

away from you." But wait, it gets

1:33

better. This is completely legal,

1:35

apparently, in the United States of

1:36

America, because of this one part of

1:39

their terms of service. Term: This OC3

1:42

Agreement is effective until terminated.

1:43

You may terminate this agreement at any

1:45

time. OC3 may terminate this OC3

1:47

Agreement upon notice to you. Very

1:49

similar to what I was discussing in the

1:50

video on Amazon and their contract,

1:52

where they had something that didn't

1:53

have ads, you could pay to have video

1:54

without ads. They put ads into it, and

1:56

they said if you want to not have ads,

1:58

you can just pay more money even though

1:59

you already paid for it. And that's okay

2:01

because the contract says that they can

2:02

change what they give you at any time. I

2:03

mean this from the bottom of my heart.

2:04

This is not just about me hating on this

2:06

particular company or even wanting this

2:07

particular scenario to change. Forget

2:09

about this company. Forget about Face

2:10

FX. If you have a contract that says

2:13

you've paid a thousand dollars to have

2:14

access to this and you put somewhere in

2:16

the contract that we can take it away

2:17

from you and say, "LOL JK, a thousand

2:19

dollars isn't enough. We actually want

2:21

35,000 a year." When you do something

2:23

that ridiculous, this is not just saying

2:25

that your $300 license is suspended. We

2:27

can't support this software forever. Pay

2:29

300 again. You are taking it to a level

2:31

of absurdity that makes it impossible

2:33

for people to respect contract law. And

2:35

the reason that we have contract law in

2:37

the United States and in most developed

2:38

countries is because when you don't have

2:40

contract law, you have people that pick

2:42

up a screwdriver or a hammer and smash

2:44

people on the head with it to get what

2:45

they want. For most of human history,

2:47

99% of human history, it was whoever was

2:50

the strongest won. You have to think

2:52

about the society that we live in at

2:53

this point where when you look Look at

2:55

eBay. For all the problems at eBay,

2:57

people are willing to give away one or

2:58

two thousand dollars of their money to

3:00

somebody they've never met, that they

3:02

don't know, that they can't see, and

3:04

they just have faith that after one

3:06

thousand dollars has been taken from

3:07

them, that somebody they don't know is

3:09

going to package something and then

3:11

somebody else that they don't know is

3:12

going to deliver it to them. That's

3:14

crazy. For most of human history, this

3:16

would have not been possible. It's only

3:18

possible because we now are starting to

3:19

live in a high trust society. And

3:21

unfortunately, that high trust society

3:23

that took hundreds of thousands millions

3:25

of years to build is being destroyed

3:27

inside of five to ten years in a very

3:29

speed run process. I'm not even saying

3:31

this for your company. Like your

3:33

company for a moment. Forget about it.

3:34

And I say this as a business owner. And

3:36

like I I'm known as a consumer advocate

3:38

on this channel at this point, but I'm

3:40

first and foremost a business owner. And

3:41

that's one of the And I come at this

3:43

from the standpoint of a business owner.

3:45

From the standpoint of like the things

3:47

that I would and would not do to my

3:49

customers and what I would expect my

3:50

customers to do to me if I did this to

3:53

them. There are a number of things that

3:54

I don't do because I don't have an

3:56

office with security. I have a basic ass

3:58

store that anybody can walk into and

4:00

half of the time when I'm there, you can

4:02

see where I am. And if I do something

4:04

that is up enough to my

4:05

customers, somebody is going to walk in

4:07

with a machete and let me know what's

4:08

up. I'm not saying this is an evocation

4:10

of violence at all. I'm saying this

4:12

because I want you to understand what

4:13

goes through my mind anytime I'm

4:15

changing my policies or decisions on

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what I'm dealing when I'm dealing with

4:18

my customers. I have dissatisfied

4:20

customers. I've been in business for

4:21

over 15 years at this point. I'm not

4:22

going to get hit everyone out of the

4:23

park and sometimes I think even if I've

4:25

done everything right, there are some

4:26

people that are just really unreasonable

4:28

and just want to be mad. And there are

4:29

sometimes where situations just suck

4:31

where I've done the best I could and in

4:32

spite of putting in all the effort that

4:34

I can, I fail anyway. But that is

4:35

different from situations where I've

4:37

engineered something where you're

4:38

practically begging somebody to hit you

4:40

in the face with a hammer. The reason

4:41

this pisses me off, not just as a

4:43

consumer advocate, but also as a

4:45

business owner, is because I would not

4:47

in a million years have the balls to try

4:50

any of these things because I have that

4:51

basic self-preservation of I don't want

4:54

to get hit in the face with a hammer by

4:55

one of my customers. Maybe it's cuz I

4:57

spent too much time in New York City and

4:58

in Bed-Stuy before gentrified, but

5:00

there's just certain things that you

5:01

just don't do to people if you want to

5:03

have a business. It's insane to me that

5:05

there are companies out there that think

5:06

that this is okay. So, there's a company

5:08

that purchased the company that produced

5:10

the software. I don't want everybody to

5:11

blame OC3 Entertainment. It does look

5:13

like OC3 Entertainment was acquired by

5:15

Speech Graphics and it was after the

5:16

acquisition that this happens about less

5:18

than a year. So, this is a very common

5:20

thing you'll see happen now where a

5:21

company will sell to somebody else and

5:23

after they sell, they do something like

5:25

this. Now, it's funny cuz you actually

5:27

have a couple of the responses from the

5:28

CEO. Hi, I'm the CEO of Speech Graphics.

5:31

I saw your post about wanting to keep

5:33

your FaceFX Professional going past its

5:35

end-of-life date on November 30th, 2026.

5:37

I think we can find a way to make it

5:38

work, but I want to be straight about

5:39

why we're retiring it. FaceFX

5:41

Professional was priced for Indies, but

5:42

it cost us more to maintain and keep

5:44

that license server running than it

5:45

brings in. On top of that, large studios

5:47

have been using the indie instead of

5:48

licensing unlimited, which is what it's

5:50

built for. Between the two, the product

5:51

isn't sustainable in its current form.

5:52

Now, again, I I I I I shouldn't be

5:55

interrupting this. I should finish the

5:55

whole thing, but I can't. It just makes

5:57

me angry. When he When he says licensing

5:58

server, what he means is the thing that

6:00

allows you to activate the product. So,

6:02

they don't trust me that I'm not going

6:04

to pirate the product. So, what they do

6:06

is they punish the legal owner of the

6:07

product, never the pirates. The pirates

6:08

never have to deal with this But,

6:09

the person who bought the product and

6:11

paid $1,000 for it, every time they

6:12

install it, they have to activate this.

6:14

And sometimes the product is going to

6:15

phone home with different pieces of

6:17

software to figure out whether or not

6:18

you're using a legitimate copy. Again,

6:20

something that never happens with the

6:21

pirated version, only happens with the

6:22

paid one. And you it's going to figure

6:24

out whether you're using a real copy of

6:26

it. And that costs them money. And to

6:28

me, that's a them problem. If I sell you

6:31

data recovery, and I say I will recover

6:33

your data for $600, I can't come back

6:35

next year, take your data away from you,

6:38

and tell you it's going to cost $15,000

6:40

cuz I actually figured out that all the

6:42

marketing I'm doing so that I could get

6:43

customers like you was costing me much

6:44

more than I thought.

6:46

I could never say that. That's insane.

6:48

That's a me problem, not a customer

6:50

problem. The same way that your your

6:52

licensing server is a you problem. So,

6:54

here's what I would propose. If it's

6:55

costing you so much money to run that

6:57

licensing server,

6:59

turn it off. And send everybody a patch

7:01

for the software so it doesn't require

7:02

the licensing server anymore.

7:04

That's a great way to solve the problem,

7:05

right?

7:07

You You're not going to do that. Of

7:08

course, you're not going to do that. And

7:09

that, in my opinion, is why piracy is

7:11

completely justified. I say this

7:13

as somebody that paid $79.99

7:16

for open source software as a

7:18

13-year-old teenager. I'm willing to pay

7:20

for the things that I find valuable, but

7:22

I will not for one second accept

7:24

any of these excuses from any of these

7:26

companies as to why it is you're allowed

7:27

to take away my because you can't

7:29

afford a licensing server.

7:31

Okay, distribute an offline patch.

7:34

We don't want to do that. Well,

7:36

you.

7:37

You bought the company, you bought the

7:39

resources, you bought the debts, you

7:40

bought the obligations. Fulfill your

7:42

obligations. They sold a

7:44

perpetual goddamn license. If you don't

7:46

want to offer that, then give the

7:47

company back, or give people an offline

7:50

patch so they can continue to use the

7:51

software without ever having to connect

7:53

to your licensing server on any computer

7:55

they want. DRM is not a paying

7:56

customer's problem. It's a you problem.

7:58

And if you want to keep doing like

8:00

this, sending out emails telling people

8:02

that their $900 software is now $35,000,

8:06

NOT ONCE A YEAR, don't be surprised if

8:09

we return to a society where nobody has

8:11

respect for contract law or the law in

8:13

general. That's not a world that I want

8:14

to live in cuz contract law benefits me.

8:16

Being able to have contracts with my

8:18

customers where we write down on paper

8:19

what we're both expecting and we both

8:21

live up to our obligations has been very

8:23

beneficial for me as a business owner

8:25

for damn near 18 years. And I don't want

8:27

all of that to be destroyed and just

8:28

return to the rule of the jungle where

8:30

somebody just knocks me on the head with

8:32

an SD card reader cuz they don't want to

8:33

pay for their data recovery at the end

8:35

and takes the drive back.

8:37

But that's the world that people like

8:38

you are speed running us towards. And

8:40

you for it. And last thing I want

8:42

to get over here is because somebody

8:43

suggested that this get put on the

8:45

consumer rights wiki. A lot of people

8:46

were suggesting that this get put on the

8:48

consumer rights wiki and somebody from

8:50

the consumer rights wiki said that this

8:51

would not be fitting because it needs to

8:53

have a certain number of coverage. It

8:54

can't be just one person's original

8:56

research. That is technically true.

8:58

However, what you can do is you can make

9:00

a user space article. So, this article

9:02

that I have on consumer rights that wiki

9:03

right now is not actually a main space

9:05

article. It's an article on my user

9:07

space. See how it says user Colden

9:09

Lawis? This is kind of like a blog

9:11

article. I'm going to be instructing the

9:12

moderators at the wiki to come up with a

9:13

very short guide on how to make a user

9:15

space article. A user space article is

9:17

an article that may not necessarily live

9:19

up to the standards for a main space

9:21

wiki article, but allows the entire

9:23

issue to be cataloged so that once it

9:25

does get all the information that it

9:26

needs, once there are more citations,

9:28

once we are able to independently verify

9:30

it by a number of other people, we can

9:32

then easily take that and turn it into a

9:33

main space article rather than having

9:35

nothing at all. I don't want that to

9:36

discourage you from actually making

9:38

articles on the wiki when these things

9:39

show up and if you want to get my

9:41

attention on something, I do read my

9:43

inbox every day, but if you have made a

9:45

wiki article on an issue, that's much

9:47

more likely to get me excited to discuss

9:48

it in a video. If you've made a wiki

9:50

article and I think that's a good way to

9:51

go forward if I want to try and utilize

9:53

and leverage my audience to try and

9:55

document all these abuses of consumer

9:56

protection in organized way rather than

9:59

it just be "Hey Louis, here's an issue."

10:01

and like I have 800 emails a day and

10:03

people want me to look into I can't look

10:05

into 800 issues a day. So, I'd like to

10:06

start leveraging my audience to do that.

10:08

The reason consumer rights.wiki has the

10:09

high standards that it does is because I

10:11

want to be able to show this to

10:13

legislators. I want to be able to show

10:14

this to a court someday. I want to be

10:16

able to show this to to judges, to

10:17

senators, to congress people. So, when a

10:19

lobbyist says that the legislation that

10:20

we're suggesting is a solution in search

10:22

of a problem that doesn't exist, I can

10:24

show them in the most disciplined way

10:25

possible that this problem does indeed

10:27

exist. The user of the software said

10:28

something that makes a lot of sense.

10:30

Regarding the business challenges of

10:31

maintaining it, I understand, but that's

10:32

the reality of acquiring a company

10:33

assuming it's an existing agreement from

10:35

a consumer perspective, speech graphics

10:36

bought a product and is now simply

10:38

choosing to brick it. If speech graphics

10:39

is unwilling or unable to maintain the

10:41

software I purchased, the solution is

10:43

simple, issue a full refund of $988.68.

10:47

I hope this gentleman goes ahead and

10:48

takes them to court and here's the

10:50

thing, like it's one of these things

10:51

where

10:52

it's not even about whether you win,

10:55

it's about wasting this company's time.

10:57

I want to see speech graphics get taken

10:59

to court in small claims court or

11:01

commercial claims court 15 to 30 times.

11:03

When you go to normal court, you're ex-

11:05

pected to have a lawyer, but when you go

11:06

to small claims court or commercial

11:07

claims court, you're not expected to

11:09

have a lawyer. And the great part about

11:10

going to small claims court and not

11:11

being expected that you have a lawyer is

11:13

usually only have to pay a filing fee of

11:14

20 or 30 dollars. If one person does

11:16

this, nah, whatever. But if 20 people,

11:18

if 80 people, if 500 people do it, their

11:20

expenses to respond to all these legal

11:22

battles are going to be more expensive

11:24

than keeping up that licensing server or

11:26

more expensive than coming up with an

11:27

offline patch for the software. I can't

11:29

do that. I I make a suit on behalf of

11:30

you because I wasn't aggrieved. If

11:32

you've used FaceFX software, I really

11:34

hope that every single person who ever

11:35

has opens up a small claims court or a

11:37

commercial claims court against Speech

11:39

Graphics for stealing away what it is

11:41

you bought and paid for. And even if

11:43

they win in court because of what it

11:44

says in the end user license agreement,

11:46

even if this wins, that's not even the

11:47

point. The point is they are trying to

11:49

take away something from you. At the

11:51

very least, you should take away

11:52

something from them. And when I look at

11:53

what it cost to have a lawyer defend you

11:55

on these types of claims,

11:56

uh I think they're going to wind up

11:57

paying a lot more in legal fees than

11:59

they would pay in refunds. It is your

12:01

job to make sure that they pay way more

12:03

in legal fees than they do in cost to

12:05

keep up that licensing server if they

12:06

decide to go ahead with things in this

12:08

manner.

12:09

Let me know what you think in the

12:10

comments down below. That's it for

12:11

today, and as always, I hope you learned

12:12

something. I'll see you in the next

12:13

video. Bye now.

12:15

>> We also have the duty not to infringe

12:18

[music] the IP rights in the process. It

12:21

is in fact the manufacturers who have

12:23

the relevant rights, not consumers.

Interactive Summary

Louis Rossmann discusses the case of FaceFX, a software initially costing around $1000 with a perpetual license, whose users were informed that their licenses would expire in 2026, requiring them to switch to an annual subscription costing $25,000-$35,000. He argues that this is an absurd and immoral practice, even if legally permissible due to termination clauses in the terms of service. Rossmann highlights that such actions erode trust in contract law, essential for a functional society. He refutes the acquiring company Speech Graphics' justification that the licensing server is unsustainable, stating it's a "company problem," and suggests providing an offline patch or facing numerous small claims lawsuits from aggrieved customers. He also promotes documenting such consumer abuses on consumerrights.wiki.

Suggested questions

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