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In August 2007, Microsoft issued its Game Content Usage Rules, a license intended to address the legal status of machinima based on its games, including the Halo series.
Microsoft intended the rules to be " flexible ", and, because it was unilateral, the license was legally unable to reduce rights.
However, machinima artists, such as Edgeworks Entertainment, protested the prohibitions on extending Microsoft's fictional universes ( a common component of fan fiction ) and on selling anything from sites hosting derivative works.
Compounding the reaction was the license's statement, " If you do any of these things, you can expect to hear from Microsoft's lawyers who will tell you that you have to stop distributing your items right away.

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