A long-running legal battle between German distributor CDV and SouthPeak has culminated with the publisher being found liable for inducing copyright infringement.
The case centred upon a 2008 distribution agreement between CDV and SouthPeak subsidiary Gamecock, under which the latter agreed to license seven games exclusively to the distributor.
In a November 2009 court ruling Gamecock was adjudged to have breached its contract with CDV after failing to deliver a number of the titles in time for a pre-Christmas 2008 release, reports Gamer/Law.
The breach of the agreement resulted in Gamecock forfeiting the copyright in the games to CDV, yet it continued to deny the charge and tried to carry on selling the titles itself.
In a second ruling made on Friday, the judge in the case said that SouthPeak, as Gamecock’s parent, was liable for inducing copyright infringement.
CDV lost a further claim against SouthPeak for inducement of breach of contract, but the publisher was found to be liable for the distributor’s legal costs, which are expected to be substantial.
Last week SouthPeak reported a net loss of $2.6 million and decreased revenues for its second financial quarter ended December 31, 2009.