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Game developer sued for breach of contract

Gaming enthusiasts in Texas might be interested in learning about a lawsuit CryEngine developer, Crytek GmbH ("Crytek"), filed against Cloud Imperium Games Corporation and Roberts Space Industries Corporation (collectively, "CIG"). CIG entered into a licensing agreement with Crytek to use its CryEngine platform for a new game called "Star Citizen," but later switched to a different engine.

Crytek alleges CIG breached the parties' agreement by, among other things, using CryEngine to market, develop, and incentivize funding for more than one game, and failing to prominently display Crytek's trademark and copyright notices in the game and related marketing materials.

Crytek also alleges that CIG breached the parties' agreement by switching to a different game engine.  CIG reportedly switched to Amazon's Lumberyard engine after running into snags with the Crytek engine. CIG stated that the lawsuit is without merit and that it has not used the Crytek engine for "quite some time."

Contract issues are at the heart of most legal disputes, and often lead to litigation. To prevail on a breach of contract claim, the plaintiff must establish that: (1) an enforceable contract exists; (2) the plaintiff is the proper party to bring the claim; (3) the plaintiff performed or was excused from performing its obligations; (4) the defendant breached the contract; and (5) the plaintiff was injured by the breach.

There are a variety of ways to resolve contract disputes. Ideally, companies may want to settle their contract issues through negotiation as opposed to litigation. This may help to save time, money and relationships. However, if necessary, an experienced litigator can advocate for a company in the courtroom if negotiations prove fruitless.

Source: Extreme Tech, "Crytek sues Star Citizen developer for breach of contract", Joel Hruska, Dec. 15, 2017

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