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>Activision v. Double Fine

>Another day, another publisher-developer lawsuit. This time, Activision filed a suit against Double Fine (headed by Tim Schafer, of Psychonauts and Day of the Tentacle fame) last week in an effort to prevent the release of the new game Brutal Legend. Activision claims it still has the rights to release Brutal Legend, which it acquired by way of its merger with Vivendi Games last year. In its complaint, Activision says that Vivendi Games invested roughly $15 million in Brutal Legend before the merger. However, Activision dropped Brutal Legend after the merger was complete, and didn’t continue efforts to publish the title.

When a publisher loses interest in a half-finished game, developers can be left in limbo. At that point, publishers have invested money in the game, and usually have been granted certain rights in return. And without those rights, developers can have a hard time getting a new publisher on-board to finish the game. The best solution to an impasse like this is to have set out a contingency plan in the original development contract that would come into play if the publisher jumps ship. As we’ve seen, without such a plan, the parties often fall into expensive litigation.

Gavin George is an associate in the Intellectual Property Practice Group of Haynes and Boone. His practice covers all areas of intellectual property law, with an emphasis on technology transactions and data privacy in the information age. His practice includes technology agreement drafting and negotiation, intellectual property analysis and due diligence, and consulting on evolving data protection and social media issues.

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