NEWS

Turbine Sues Atari Over Dungeons & Dragons Online

Tom Ivan's picture

By Tom Ivan

August 27, 2009

See also:

Related Articles:

Dungeons & Dragons Online: Stormreach developer Turbine has sued Atari for in excess of $30 million after the publisher allegedly failed “to meet its publishing and distribution obligations.”

According to Turbine, Atari breached a licensing agreement by failing to devote the necessary resources to effectively promote and distribute DDO: Stormreach, forcing the developer to “step up and assume” what should have been Atari’s role.

“Atari had failed to meet its publishing and distribution obligations under the license agreement to the detriment of the service’s (and thus Turbine’s) revenues. In order to protect its then $20 million investment in the development of the service, Turbine agreed under Amendment Number Four to step up and assume Atari’s publishing and distribution obligations in North America,” reads Turbine’s complaint, as reported by Courthouse News Service.

“However, Atari insisted on retaining sole responsibility for publishing and distributing DDO: Stormreach in Europe. Although Turbine has repeatedly requested that Atari remedy its breaches, or permit Turbine to distribute the DDO: Stormreach software in Europe, Atari has steadfastly refused, effectively choking off sales in Europe. This breach of Atari’s obligations under the license agreement and the distribution agreement has caused an estimated $13 million in lost franchise revenue, an estimated $3 million of which was lost revenue to Turbine.

“By this lawsuit, Turbine seeks to recover in excess of $30 million in losses occasioned by Atari’s breach and wrongful conduct. Turbine also seeks a declaration that Atari’s claim for additional royalty fees and purported grounds for termination of the parties’ agreements are unfounded and without basis in the agreements.”