A Wake-Up Call For Video Game Developers

Law360, New York (May 7, 2013, 12:17 PM EDT) -- On April 9, the U.S. Court of Appeals for the Fifth Circuit issued an order upholding an arbitration award against a video game developer and granting a publisher a perpetual license in the developer’s game due to the developer’s fraudulent conduct and egregious breach of a video game development agreement. The appellate ruling issued in New Orleans came in the case of TimeGate Studios Inc. v. Southpeak Interactive LLC, which originated in the U.S. District Court for the Southern District of Texas.

In June 2007, video...
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