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Sawyer settles Atari suit
Michael French Feb 5 2008, 2:10pm
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EXCLUSIVE: RollerCoaster Tycoon royalties dispute ends with out of court settlement
Games designer Chris Sawyer has settled his long-running dispute with Atari over unpaid royalties, Develop understands.
An out of court settlement has brought to a close the legal battle Sawyer (pictured) initiated in 2005 claiming that Atari had not paid some $4.8m in royalties.
Previously, Sawyer alleged Atari had breached a licensing agreement by not allowing his auditors access to accounts from 1999 to 2001. Atari’s revenue from Sawyer’s games, including Transport Tycoon and three versions of RollerCoaster Tycoon, was at the time estimated at around $180 million of which Sawyer received about $30m - but he said the figure fell short of what was due. He said forensic accountants had discovered 13 instances of payments which were wrongly withheld.
Atari counter-claimed, saying he too had part in breaking a deal with Atari by letting Frontier to create a demo based on RollerCoaster Tycoon - which induced Frontier to breach its contract with the publisher.
The publisher's lawyers also wanted the case heard in the New York rather than London courts, but UK magistrate Justice Lawrence Collins at the time said the firm was playing "tactical games".
Last year, it seemed the case would go to the High Court, but now the dispute has been settled. However the terms of the settlement are confidential, with the parties involved unable to discuss details; Sawyer and his legal representatives at London law firm Marjacq were unable to comment on the matter when contacted by Develop.
Given the recent appointment of David Gardner as Atari's new CEO, the timing may not be coincidental. In his new role Gardner, the former EVP and COO of EA's worldwide studio operation, is charged with "rejuvenating the Atari brand" in the industry - and perhaps also, with the closure of this dispute, plans to revive the development community's faith in one of gaming's oldest brands.
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Comments
“Hooray”
Posted by: Squidge - Feb 5, 7:07pm
Congrats to Chris - I hope he got the money he was asking for (or as close as you can get in a settlement of this ilk).
“Interesting”
Posted by: JohnR - Feb 5, 7:08pm
This is an important case. It's just a shame that the matter and its solution is now confidential. Why? Because it proves what many developers have said over and over - publishers don't always pay the right royalties. I hear EAP does a good job of it, hence why people clamour for a Partner deal but rarely get it - but archaicly-run publishers like Atari didn't. Although it was always a reputably duff pub to deal with.
Here's hoping, as the article points out, that David Gardner is hoping to improve the reputation of his new company inside the industry as well as outside of it.
“Correction”
Posted by: Guy Herbert - Feb 7, 12:15pm
For the record, Marjacq is *not* a "law firm", but a specialist games agent, Chris's commercial representative for development and rights deals. His solicitors in the matter were Eversheds LLP and counsel were Andrew Hunter of Blackstone Chambers, and Jonathan Hirst QC of Brick Court.