Nothing done by Microsoft was illegal.
Is it illegal to pay someone to say only positive things about your company/ product? No
Is it illegal to not disclose the fact that you are part of a promotion by a company? Yes
Was this done? Yes
Did Microsoft's NDA require that they not disclose the fact that they are part of the promotion? No
Terms quoted in article:
[quote]“You agree to keep confidential at all times all matters relating to this Agreement, including, without limitation, the Promotional Requirements, and the CPM Compensation, listed above. You understand that You may not post a copy of this Agreement or any terms thereof online or share them with any third party (other than a legal or financial representative). You agree that You have read the Nondisclosure Agreement (attached hereto and marked as Exhibit “A”) and You understand and agree to all of terms of the Nondisclosure Agreement, which is incorporated as part of this Agreement.” [/quote]
This states that they can't disclose the requirements or amount of compensation, not that they can't disclose that they are participating in a paid promotion by Microsoft.
Microsoft's lawyers aren't stupid, they know the law. If you are going to blame anyone, blame Machinima for not informing their partners that they are required to disclose the fact that they are participating in a paid promotion.
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I am blaming machinima as well. The problem I had with this whole scenario is everyones laid back reaction to it.?