breach of contract
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Oculus founder sued for using confidential information
Palmer Luckey and his company, Oculus VR Inc, are being sued yet again. Total Recall Technologies, a company in Hawaii, is accusing Luckey of violating a confidentiality agreement that he signed as a former employee of the company. According to the lawsuit, he was hired about four years ago for the precise purpose of developing a head-mounted display. As such, they claim he was privy to information and feedback that he later used for the Kickstarter campaign to introduce his own version of a head-mounted display, Oculus Rift.
Quanta sues AMD, claims it sold defective products
Yikes. Quanta -- also known as the planet's largest contract maker of laptops -- has just slapped a nasty lawsuit on the world's second-largest chipmaker. According to Bloomberg, Quanta is alleging that AMD and ATI sold chips that "didn't meet heat tolerances and were unfit for particular purposes." Those chips were then used in NEC-labeled machines, and caused them to "malfunction" in some regard. No big deal? Hardly. In the complaint, Quanta states that it has "suffered significant injury to prospective revenue and profits," and it's seeking a jury trial and damages for good measure. As if that weren't harsh enough, the suit also claims "breach of warranty, negligent misrepresentation, civil fraud and interference with a contract." When pinged for comment, AMD's spokesman, Michael Silverman stated: "AMD disputes the allegations in Quanta's complaint and believes they are without merit. AMD is aware of no other customer reports of the alleged issues with the AMD chip that Quanta used, which AMD no longer sells. "In fact, Quanta has itself acknowledged to AMD that it used the identical chip in large volumes in a different computer platform that it manufactured for NEC without such issues." Somewhere, Intel has to be smirking.
Codemasters files suit over Jumpgate Evolution delays
We have all been waiting for Jumpgate Evolution for quite some time, but perhaps no one quite as much as Codemasters. As a matter of fact, the company is so tired of waiting on the game to come out that it's decided to file a civil complaint against Netdevil and its parent company Gazillion Entertainment for the delays in publishing the eagerly anticipated sci-fi space shooter. While the announcement on Codemasters' official Jumpgate Evolution site doesn't offer anything beyond the generic "yes, we did this, here's what court we filed it in, no other comment at this time" statement, the court document itself makes for interesting (if dry) reading. Essentially, Codemasters charges that Netdevil failed to meet contractual guidelines, which called for the studio to ship the game by February 24th, 2009. During that time, Codemasters paid almost 1.4 million USD to Netdevil to help underwrite the game's development and for "art assets." Codemasters is also seeking compensation due to setting up servers, website, community team, etc. for the European version of Jumpgate Evolution. Ultimately, it boils down to a pretty standard breach of contract that offers Codemasters' share of interest back to Netdevil and Gazillion in return for all monies invested in the project to date. Whether or not this brouhaha will cause any changes to the timetable for Jumpgate Evolution will remain to be seen. We'll keep an eye out as the case progresses. [Thanks, Merketh!]
Global Verge wins $43 million lawsuit against mystery MVNO Zer01
When we first heard about Zer01 it was set to launch at a time when other MVNOs were disappearing. (Remember Amp'd Mobile, or Helio?) Zer01 was pledging unlimited voice and data for just $69.99 a month, before most other carriers had their $99 plans, but ultimately never delivered a thing. Apparently Global Verge was similarly left in the dark, but unlike the rest of us it had invested $170,000 in Zer01 in exchange for selling wireless services as part of its multi-level marketing company. Global Verge had been allowing its "e-associates" (people who pay for the right to hawk Global Verge's wares) to shill for Zer01 wireless, which of course never delivered a single call. There are accusations flying fast and frantic about which of the two companies is the worst offender here, but the District Court in Clark County, Nevada at least believes that it's Zer01 reneging on its promises, awarding $43 million to Global Verge for breach of contract and various other legal wrongdoings. Congrats, GV, and good luck collecting.
Nokia asks court to dismiss part of Apple patent lawsuit
How do we know we're years away from a final resolution to the Nokia / Apple patent lawsuit? It's been six months since Nokia first filed its complaint, and the two parties are just now starting to argue about which specific substantive claims they're eventually going to argue about. Let's do a quick refresh: at the heart of the lawsuit is a conflict over Nokia's wireless patents, some of which are almost certainly essential to how cell data and WiFi operate. As a member of the ETSI and the IEEE licensing groups which oversee GSM and WiFi, Nokia's required to license its patents to anyone who asks on fair terms, but those terms aren't set in stone -- Nokia can negotiate separate licenses as it sees fit, and it apparently wanted Apple to cross-license its touchscreen patents as part of the deal. Apple said no, and now we're all in court, with both sides alleging patent infringement in three different lawsuits (one of which is on hold) and Apple claiming that Nokia is also liable for breach of contract, because it promised fair licensing terms and didn't deliver. Got all that? Right. So that brings us to yesterday, when Nokia asked the court to dismiss all of Apple's contract-related claims, saying that they're simply a distraction from the real issue, which is patents, and that its license offers aren't unfair simply because Apple doesn't like them. In short: Apple and Nokia's patent lawsuit is currently not really about patents at all, but about whether or not it should also be a fight about contract terms in addition to a fight about patents, and that question won't be resolved for months. And that's why vigilante justice is the future of America's tarnished civilization something like 90 percent of patent cases eventually settle out of court. P.S. Oh, and in case you're wondering, today Reuters reported that the first trial date isn't expected until 2012. So, yeah.
PopCap loses another $2.7m to MumboJumbo
[Image credit: bloomsberries] Despite PopCap's claim to appeal the original ruling of the lawsuit between it and MumboJumbo, a judge has awarded another $2.7 million to MumboJumbo citing "legal fees," according to Develop. 193rd Civil District Court Judge Carl Ginsberg ruled earlier this week that PopCap would be burdened with the amount (which includes $525,000 in "post-verdict appeals"), making the total sum that MumboJumbo receives $7.3 million. The case originally derived from an alleged breach of contract on PopCap's part regarding the right to sell its own games in North America -- in so many words, the lawsuit found that PopCap had illegally broken an agreement with MumboJumbo and sold/marketed said games in NA (those monsters!). That said, the agreement was for MumboJumbo to handle that sales/marketing, thus making PopCap in breach of contract in doing so. Sound confusing? It's business, folks. We're right there with you.
TimeGate sues SouthPeak for alleged breaches in publishing agreement
Chalk up another frustrated party accusing SouthPeak of wrongdoing. The company has been sued by Section 8 developer TimeGate, which alleges that the publisher has withheld royalty payments and entered into a PS3 licensing deal on the game with Russian company IC, an arrangement that TimeGate claims SouthPeak had no right to make. In legal documents obtained by Joystiq, TimeGate also alleges that this SouthPeak T-shirt promotion was unauthorized, that the publisher had mislead TimeGate about sales figures and that the publisher has stated it should not have to adhere to TimeGate's original agreement, as it had been made with Gamecock, which SouthPeak purchased in late 2008. We've reached out to SouthPeak for comment. If you prefer your language far more formal, the lawsuit puts it like this: "[SouthPeak] failed to provide a sufficient sales report, withheld royalty payments and did not adhere to the obligation to act in good faith and fair dealing when they established the sham transaction in order to deprive TimeGate of royalties despite the special relationship between the parties and being in a position of trust." No specific amount is mentioned in the suit, with TimeGate asking only for "compensatory damages in an amount to be determined" following an independent audit of Section 8's sales.
Breaking: Turbine sues Atari over Dungeons and Dragons Online
Turbine has filed a lawsuit against publishing partner Atari in New York courts for a breach of licensing agreement all centered around Dungeons and Dragons Online. The two companies are locked in a legal battle regarding accusations including failing contractual obligations and wrongful termination of agreements.The court documents filed on Monday paint the picture of a long chain of grievances against Atari made by Turbine, starting with lackluster support all the way back when Dungeons and Dragons Online: Stormreach launched in 2006. Turbine asserts that Atari has failed to maintain their obligations as the publisher of the game while still holding onto the licensing for Dungeons and Dragons. These obligations mostly include the marketing aspects of the game, such as commercials, advertising, retail box creation, retail promotion, and cross-promotion with other Atari products. (Fans of the game will remember the very lackluster marketing campaign at the game's launch, especially when compared with Champions Online's marketing, another Atari-backed game.) Because of these failures, Turbine has had to step in and become the publisher of the game in North America, costing the company millions of dollars.
