Valve Sues Activision-Blizzard

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Keane Ng

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Valve Sues Activision-Blizzard



It's a legal battle of game industry titans as Valve is suing Activision-Blizzard for money owed from a settlement in a 2002 lawsuit.

If you've been around the block or have a good memory for game industry legal catfights, you might remember that in 2002 Valve sued its then-publisher Sierra (owned by Vivendi Games) claiming a breach of contract (or Software Publishing Agreement to use the fancy term) and copyright infringement. The suit was settled in 2005 and Vivendi's license to publish Valve games was terminated. Some time after, Vivendi merged with Activision to become Activision-Blizzard.

Well, turns out the story isn't quite over, as Valve filed suit [http://media.libsyn.com/media/gamepolitics/valve-activision-complaint.pdf] against Activision on April 28, claiming that the company has failed to make good on an agreement to pay Valve an amount decided upon by an arbitrator.

In the 2005 settlement, Activision agreed to submit a final royalty report to Valve, and the parties agreed that an arbitrator would handle the audit process, and that the arbitrator's decision would be "final and binding," says the Valve suit.

The arbitrator determined on April 6 this year that Activision owes Valve $2,391,932 including interest. Activision, however, challenged the decision, saying that Valve had been overpaid by $424,136 including interest. Valve alleges that Activision didn't bring up its claim in the process of arbitration, and, when it was brought up, the arbitrator "refused to consider it because it had not been submitted to the agreed upon audit and dispute process."

On April 20, Activision paid Valve $1,967,796, exactly $424,136 less than the amount determined by the arbitrator. Furthermore, Valve claims that Activision "represented" to them that they were not planning on paying the rest, and that if Valve made legal action to get it, they'd countersue.

Well, Valve's gone ahead and taken legal action. Will Activision make good on their alleged threat and bite back?

(GamePolitics [http://www.gamepolitics.com/2009/04/30/it039s-ugly-valve-sues-activision-activision-threatens-sue-valve])

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Anachronism

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Holy crap. A battle between two of the biggest names in gaming today. I suspect that half the world will be destroyed in the resulting cataclysm.

Whoever wins this, there are going to be a lot of pissed off fanboys.
 

Archaon6044

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if this is re-emerging now, it might indicate that Valve is in some financial trouble, and is trying to get some money back
 

Kiutu

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Sep 27, 2008
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I bet this will just waste money for Valve than get, unless they win and it costs less than $424,136 in the end.
I like Valve but it just seems like they are being sticklers.
 

Lost In The Void

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Aug 27, 2008
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*cracks his knuckles* These are the reasons law is so lucrative. In my opinion Valve should and most likely will win as they probably have documents from the first case as well as financial statements and if they do this case is theirs
 

Keane Ng

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Archaon6044 said:
if this is re-emerging now, it might indicate that Valve is in some financial trouble, and is trying to get some money back
It's only re-emerging now because the audit arbitrator only determined the amount owed earlier this month.

I'm pretty positive Valve is not in financial trouble.
 

bodyklok

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Fight! Fight! Fight!

I'm betting 50 on valve. Whos with me, actually don't get in excited this will probably take years to be settled once and for all.
 

Doug

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Anachronism said:
Holy crap. A battle between two of the biggest names in gaming today. I suspect that half the world will be destroyed in the resulting cataclysm.

Whoever wins this, there are going to be a lot of pissed off fanboys.
Oh-blood-hell-in-a-handbasket yes! On first inspection, it seems as if Valve is in the right, but who knows with legal matters.

Add to that, are their activison fanboys? Really?
 

Anachronism

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Doug said:
Add to that, are their activison fanboys? Really?
I really hope not, because if there are they should get their heads examined. I just assumed that if Activision gets hit by a lawsuit it'll involve Blizzard as well. May well be wrong about that, though.
 

Abedeus

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THE SHIT IS DOWN!! IT'S DOWN, EVERYONE! DEVELOPER WARS!!

I guess Blizz will probably empty one of the thousands wallets... And they'll still have enough for cookies for everyone as an apology.
 

Doug

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Anachronism said:
Doug said:
Add to that, are their activison fanboys? Really?
I really hope not, because if there are they should get their heads examined. I just assumed that if Activision gets hit by a lawsuit it'll involve Blizzard as well. May well be wrong about that, though.
Ahhh, right - I forgot about Blizzard. Hell, the FPSers of Valve vs the MMORPGers of WoW? The Valvers can shoot far better and have better reactions, but the Wowers have better loot and can shoot lightning out of their hands! ;)
 

Booze Zombie

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I hope Activision gets Prototype out the door before Valve hands them their own arse on a silver tray.
 

Skizle

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Keane Ng said:
Archaon6044 said:
if this is re-emerging now, it might indicate that Valve is in some financial trouble, and is trying to get some money back
It's only re-emerging now because the audit arbitrator only determined the amount owed earlier this month.

I'm pretty positive Valve is not in financial trouble.
isnt Valve under some kind of investigation though?
 

The Shade

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I'm rootin' for VALVe on this one. Some people think they're just being whiny. But wouldn't you be with half a million dollars on the line?
 

Skrapt

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If as Valve says that both companies agree the auditors word would be the final say, then I'd say Valve is in the clear on this one. As Activision is disagreeing with the auditor, something they agreed not to do - or atleast to accept their final decision. If no such agreement was made then the waters get a little murky.
 

Nimbus

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Oct 22, 2008
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Doug said:
Anachronism said:
Doug said:
Add to that, are their activison fanboys? Really?
I really hope not, because if there are they should get their heads examined. I just assumed that if Activision gets hit by a lawsuit it'll involve Blizzard as well. May well be wrong about that, though.
Ahhh, right - I forgot about Blizzard. Hell, the FPSers of Valve vs the MMORPGers of WoW? The Valvers can shoot far better and have better reactions, but the Wowers have better loot and can shoot lightning out of their hands! ;)
I have a feeling that a fight between Value fanboys and Blizzard fanboys would be a bit like the Left 4 Dead survival mode :p
 

Lord_Panzer

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Feb 6, 2009
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Nimbus said:
Doug said:
Anachronism said:
Doug said:
Add to that, are their activison fanboys? Really?
I really hope not, because if there are they should get their heads examined. I just assumed that if Activision gets hit by a lawsuit it'll involve Blizzard as well. May well be wrong about that, though.
Ahhh, right - I forgot about Blizzard. Hell, the FPSers of Valve vs the MMORPGers of WoW? The Valvers can shoot far better and have better reactions, but the Wowers have better loot and can shoot lightning out of their hands! ;)
I have a feeling that a fight between Value fanboys and Blizzard fanboys would be a bit like the Left 4 Dead survival mode :p
Winner of 'Best Metaphor Ever.'