Residents and businesses in the Toledo area as well as the rest of Ohio might be interested in this article regarding the failure of Sony Interactive Entertainment to pay royalties to Tangent Games, resulting in a suit. Tangent Games claimed that Sony failed to pay royalties for a video game through the Sony PS+ subscription service.
According to Law|Street, Tangent Games developed “Here They Lie,” a single-player experiential horror game, for Sony. Sony had agreed to pay Tangent royalties for the distribution of the game to PlayStation subscribers. The agreement was made in 2015.
Sony has not paid Tangant and owes “at least $8 million in royalties” as agreed to in the development contract. Sony had asked Tangent, during agreement negotiations, to agree to distribute the game as “game of the month” to subscribers without royalty payment. Tangent refused and told Sony “that Tangent would not accept royalty-free distributions of its Game…”
This clause was dropped from the final agreement, which both parties signed. It was never brought up again. Tangent also complained that royalties are owed, against the same game, for other and more recent PlayStation subscription services, such as PlayStation Plus (PS+).
The suit is based on the distribution royalties as stated in the development agreement. In total, Tangent Games has sought a declaratory judgment, an award for costs and fees, an award for damages, prejudgment interest, and other relief as determined by the court.
Business litigation between two companies can involve royalty payments as well as breach of contract. It is important to consult with an attorney, who also may provide assistance in disagreements involving customers, competitors, employees and vendors. Complex issues and an array of business transactions, such as mergers, might be made easier with a lawyer versed in business law and litigation.