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The Call of Duty: Modern Warfare series has earned Activision a lot of money, and now a beef with the game's developers might end up costing the publisher up to $125 million. That's the higher end of what more than three dozen former and current employees of Infinity Ward, the development studio behind CoD:MW, are suing Activision for, claiming the publisher owes them anywhere from $75 million to $125 million in unpaid royalties, and maybe more if damages get factored in.
Activision's legal troubles began when, a little over a month ago, Activision fired Infinity Ward's two main guys, Jason West and Vince Zampella, who subsequently filed a $36 million lawsuit claiming unpaid royalties. West and Zampella went on to form their own studio called Respawn Entertainment and signing a deal with Electronic Arts. Since then, other employees have left Infinity Ward, some of them to join Respawn Entertainment.
The lawsuit alleges that Activision withheld royalty payments in an attempt to prevent the max exodus that has taken place. There are 38 employees represented in the lawsuit, 21 of them former employees of Infinity Ward, while 17 still work there.
"Activision engaged in this inappropriate course of conduct in an attempt to force employees of Infinity Ward to continue to work at a job that many of them did not want just so Activision could force them to complete the development, production and delivery of Modern Warfare 3," the suit says.
Naturally, Activision sees things another way and claims "the action is without merit." According to Activision, the publisher has every right to determine the amount and schedule of bonus payments for CoD:MW "and has acted consistent with its rights and the law at all times."
Maybe so, maybe not, but either way, this one's headed to court.
Comments are closed on this article
visibly_stealthy
April 28, 2010 at 10:17pm
Looks like Activision completely lost my interest in any other COD games to come. I will see what Respawn Entertainment has to offer.
In the hands of a master, any object can become a field improvised, lethal weapon.
violian
April 28, 2010 at 11:08am
I don't side with the employee's on the royalties aspect as Activision owns the right to the Call of Duty franchise. Not the employees, not even the CEO of Activision. As for the bonuses that the employees are claiming, yes they deserve it.
Keith E. Whisman
April 28, 2010 at 9:21am
A bonus and a Royalty payment are two separate and different things entirely. Both are usually a result of a legally binding contract and because of that contract the management can be sued for not keeping it's side of the agreement. This would be like me quiting my lease on an apartment. I'm responsible for the amount of the lease contract so if I pay for 2months in a 12 month lease the leave I'm still responsible for the other 10. Same thing with the royalties and bonuses. Royalties are generally a set amount but bonuses are usually a percentage of something. I side with the employees.
