Infinity Ward bosses suing Activision
For breach of contract, unpaid royalties.
Jason West and Vince Zampella, the Infinity Ward studio heads fired by Activision earlier this week, are to sue the publisher for wrongful dismissal, unpaid royalties and the right to control "Modern Warfare-branded games".
They've issued a strongly-worded statement via their lawyers responding to Activision's claims of "insubordination".
The statement claims that, in Call of Duty and Modern Warfare, West and Zampella created "two of the most successful videogames in history" and, get this, "the most successful entertainment product ever offered to the public".
"Activision terminated their employment weeks before they were to be paid substantial royalty payments as part of their existing contracts for Modern Warfare 2," the statement reads.
"Instead of thanking, lauding, or just plain paying Jason and Vince for giving Activision the most successful entertainment product ever offered to the public, last month Activision hired lawyers to conduct a pretextual 'investigation' into unstated and unsubstantiated charges of 'insubordination' and 'breach of fiduciary duty,' which then became the grounds for their termination on Monday, March 1st," said their attorney, Robert Schwartz.
Jason West said, "We were shocked by Activision's decision to terminate our contract. We poured our heart and soul into that company, building not only a world-class development studio, but assembling a team we've been proud to work with for nearly a decade. We think the work we've done speaks for itself."
"After all we have given to Activision, we shouldn't have to sue to get paid," Zampella said.
"Activision seized control of the Infinity Ward studio, to which Activision had previously granted creative control over all Modern Warfare-branded games," the statement concludes. "The suit was filed to vindicate the rights of West and Zampella to be paid the compensation they have earned, as well as the contractual rights Activision granted to West and Zampella to control Modern Warfare-branded games."
In legalese, that translates to a suit claiming for "breach of contract, breach of the implied covenant of good faith and fair dealing, wrong termination in violation of public policy, and declaratory relief".
There has clearly been a power struggle between Activision and the Infinity Ward bosses over the future of the Call of Duty franchise. Within 24 hours of dismissing the pair, Activision had announced plans to expand Call of Duty with two or three new games in the next two years, an action-adventure game from its new Sledgehammer studio, and pushes into new markets, different genres and new ways of making even bigger piles of money.
That power struggle is now headed for the courts, and we think this one's going to be ugly, kids.
You may also like...
-
Why Devs Owe You Nothing
-
Face-Off: The Darkness 2
-
Ultimate Marvel vs. Capcom 3 Vita Review
-
Sony admits "dropping the ball" with Demon's Souls
-
App of the Day: Sir Benfro's Brilliant Balloon
-
Skyrim patch 1.4 performance tip: make a new manual save
-
CD Projekt: Witcher 2 intro cinematic "the most expensive asset we ever created"
-
Grand Slam Tennis 2 Review
-
One Piece: Unlimited Cruise SP Review
-
Who Killed Rare?
-
Gotham City Impostors Review
-
Valve admits hackers accessed Steam transaction log
-
Mass Effect 3 FemShep trailer debuts
-
Kingdoms of Amalur: Reckoning Review
-
Epic's Sweeney on graphics tech: "the limit really is in sight"
-
App of the Day: Superman
-
Next Xbox has tablet-like touch-screen controller - rumour
-
The Darkness 2 Review
-
Double Fine Adventure passes Day of the Tentacle budget
-
Skyrim patch 1.4 now live for Xbox 360
-
Sony: The Last Guardian is making "slow progress"
-
Blizzard legally opposes Valve's Dota trademark application
-
EA announces starry Syndicate voice cast
-
David Braben discusses consumer Raspberry Pi release
-
King Arthur 2 Review









Comments (94) Latest comment 2 years ago
Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!
Comment below viewing threshold Show
Comment below viewing threshold Show
Rich Company sacks two rich guys. Rich guys sue rich company. Tedium drags on for months and is reported as 'gaming news'.
Comment below viewing threshold Show
Comment below viewing threshold Show
"plans to expand" link "
Spelt "spelled" wrong !
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Fart jokes and graffiti cocks.
Comment below viewing threshold Show
Comment below viewing threshold Show
Either way I'm behind these guys, IF they did have the rights to the MW IP AND the charges for their dismissal are THAT minor, it's techically theft. of not only the money but also of the IP, unless they can prove that the dismissal was justified and have soild ground to do so - the guys have got this case in the bag...
HOWEVER
Money is on Activision dragging the case on for ages while in the meantime they copy and paste MW2's code to rattle off those 3 games as fast as possibile gaving us half-arse projects, ruining the IP's rep and then just tossing it to the guys in a 'settlement' outside of court - basically saying we've done what we wanted with it you can have whats left - oh we're keeping most of the profits'
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
I guarantee you it is considerably more complicated than this release (note: by the victims) allows and more complicated than Activision were willing to discuss in their own release. It can be rather difficult to sack people, especially at that level. Just because Activision are dicks doesn't mean they were wrong and just because it was developers (and I've never understood why developers can still trade on this idea that they are the poor guys still coding from their bedrooms, IW is a huge corporate entity) that were the victims doesn't mean they are right.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
You just can't fire someone just because you have to pay them!
Comment below viewing threshold Show
Spelled and spelt are both valid words.
Comment below viewing threshold Show
"publishers shouldn't be able to control a IP like that IMO"
Its not that straight forward though. If a publisher paid for an IP, and owns an IP, why on earth should they NOT be able to control it? I understand where you are coming from regards the creators of the art and so on, but its a bit over simplistic to say publishers should be able to control their IP.
What it really comes down to is whether there was a contract that said IW get to control the IP or not.
And the unpaid royalties are another entirely seperate issue also.
Comment below viewing threshold Show
It is rare anyone wins this kind of thing. It will probably get settled out of court, or just run for years until somebody dies of old age.
Comment below viewing threshold Show
Yes I know they are
Gramatically in the sentence it was the wrong one used
Comment below viewing threshold Show
Agree this will be the most probable outcome. After all money does talk. An out of court settlement will probably be the order of the day with both parties claiming to have "won" the case.
Comment below viewing threshold Show
Comment below viewing threshold Show
but is it a pre-scripted sequence?
Comment below viewing threshold Show
Comment below viewing threshold Show
Course wouldnt sound quite the same then would it 'Activision has not paid royalties that are not due to be paid for a month'
Still being careless with the truth - its what makes the worlds press go round
Comment below viewing threshold Show
"You just can't fire someone just because you have to pay them!"
This case is anything but open and shut. I'm not standing up for Activision, but the reasons they had for removing the heads wasn't because of pay, but it was rumoured to be because they were having talks with other publishers.
Comment below viewing threshold Show
I know rumoured isn't the same as having, what I'm saying is that the case is not simply - Activision doesn't want to pay us so they're firing us.
Theres a whole lot more to it and we'll probably never find out most of it.
Comment below viewing threshold Show
I kind of assumed that grammatically speaking, "Spelled "expand" wrong" was buggered regardless of which variant was used.
Have I completely misunderstood the whole complaint?
"Bonders - why didn't you say so? You called me up on spelling you joey! "
This is what I thought. A correctly spelled word used incorrectly within a sentence, is still spelled correctly.
Comment below viewing threshold Show
<a href = "http://latim esblogs.latimes.com/entertainmentnewsbuzz/2010/02/anatomy-of -a-60-dollar-video-game.html">anatomy of a $60 game</a>
Comment below viewing threshold Show
Chickens, coming home, roosting.. there's a phrase in there somewhere.
Comment below viewing threshold Show
It is to be - and will be now - debated that such a level of saturation and success could be achieved without these things, thus Activision will be ruled to have at least semi-ownership I would think. Many of the thing's debated will be intangibles unfortunately, which will mean they will be rife for filibustering emotive worded plea's from both party's. None of this stuff is open and shut and will as other's rightly pointed out take time.
If I were the judge I would rule that no company or party can use the said disputed IP in any way for commercial purpose while the litigation is on going. That should get them moving
Oh and they should be glad that this isn't the recording industry - royalties are paid there for albums on a bi yearly basis. It could always be worse!
Comment below viewing threshold Show
The reason the publisher takes a huge slice? Because they cover most of the cost of the game, thats where the massive salaires for the likes of these two guys comes from.
sqj - it says in the article that they hired investigators. If I ehar a rumour that two of my principle staff on my principal franchise are talking to other companies I'd be investigating it aswell.
Not necessarily you, but people are so quick to hate Actviision that they are automatically assuming they are in the wrong. I would wage that Activision employ people that know more about the contracts their staff hold with them, the current state of employment law and exactly how liable they are in the evnt of a law suit more than anyone else on this site.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
World of Warcraft says hi
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Even if IW won't win legally they will probably win over the gamers. Which are the people who buy the games. Which Activision so often seem to purposely dislike and try to screw over as many times they can.
I have no idea what rights IW had/have (or these guys that got fired had) regarding contracts they made with Activision. Seems that they might have had a not really good negotiator. I really do hope that Activision is going to take a fall - hopefully either just go away or the top branch completely replaced by actually competent people.
Comment below viewing threshold Show
This action won;t hurt activision at all. the 5000 people who use this website are the 'informed' gamers, yet look how many of you have CoD MW2 or GH anyway. As to the rest of the millions of people that buy this games, why the hell would they care?
'The gamers' aren't the people who buy games, they are the vocal minority on websites like this, most of whom will espouse their opinions before buying the games anyway. The people who buy games in the main couldn't give two shits about this sort of thing.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
I heard they raped and murdered a young girl in 1990.
Now I don't know whether thats true or not, but they're not denying it!
(Edit: spelling!)
Edit 2: Negs - I'm guessing there aren't enough Americans on Eurogamer then
Comment below viewing threshold Show
I hope they're successful in their suit. This whole affair reeks of sleaze to me.
Comment below viewing threshold Show
Anyway, Activision will probably win this, as they've obviously had more time to prepare the legal aspect of their move. I do hope it turns very, very ugly though, as it will probably scare all the other capable devs away from Activision.
Comment below viewing threshold Show
There are conflicting reports too, for example Giant Bomb mentioned that IW's recent demeanour towards Activision could have been a factor but they would have probably canned Robert Bowling too if it was a case of the whole company acting the bollocks. Gamasutra sources reckon that Activision made a power play and used some corporate subterfuge to give them a reason to fire both with the company wide layoffs and install some puppet producers to bring IW fully into line.
The question we really should be asking was did West and Zampella jump, or were they pushed?
Comment below viewing threshold Show
"There are enough morons to keep the CoD franchise alive indefinitely"
Its a little rich to call the many millions of CoD buyers out there morons, just 'cos they have better things to give a f*ck about than the legal wrangling between the various companies that made it.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
IW want it to be a modern warfare game, Acti want it to be a Call of Duty game...
Comment below viewing threshold Show
Bobby had little part in it. Thankfully Blizzard exists as its own entity, although there is no real info on how much control the heads of Activision Blizzard have over Blizzard (and which side they are on, Activision or Blizzard).
Seriously, when Chairman of Activision Blizzard has a name like René Penisson - it all seems like a really crude joke.
[Edit] IW probably sold the Call of Duty name to Activision. But what about the Modern Warfare name?
Comment below viewing threshold Show
I'm pretty sure that title goes to the humble 'Condom'
Comment below viewing threshold Show
Comment below viewing threshold Show
Activision are the new evil, and are trying to take the evil crown from EA, whose modus operandi is to buy a company, then shut it down and steal their IPs. ( Command and Conquer etc ).
You should have just sold the company and taken the cash up front guys, then gone off and made a new studio with your former employees. Activision only ever wanted the IP, not the people.
Comment below viewing threshold Show
"I'm comfortable in making the assumption there are millions of morons available to buy the same old game year after year"
So you are comfortable making an inaccurate assumption? I'm not sure your comfort is really here nor there in all of this.
Comment below viewing threshold Show
Comment below viewing threshold Show
"the most successful entertainment product ever offered to the public"
I'm pretty sure that title goes to the humble 'Condom'
Or the PS2, or the iPod. Logically, following on from that the iCondom2 will be absolutely amazing!
Comment below viewing threshold Show
You must have shares in craptavision to be ass licking like that non stop, activision are totally in the wrong on this matter and they will lose the case and lose respect from all the major developers and gamers around the world.
Craptavision certainly know how to treat their developers, let them make a billion dollar game then sack them while not paying them what they are owed, hope they go bankrupt in the future for this......
Comment below viewing threshold Show
Comment below viewing threshold Show
Kottick did make Activision into a financial powerhouse. The problem is with the ruthless corporate decisions they took to get there.
-They tried to squeeze out as much profit out of the Guitar Hero franchise as possible and now the series is on its last legs as they had to lay off hundreds of people working on the franchise and close whole studios because of their spectacular mismanagement.
- They closed Shaba Games because they didnt want to just be the "Spider-Man" studio. Which interfered in their plans so they just let everyone go instead
- Raven is probably going to be wrapped up once Singularity is finished unless it does spectacular business and even then they still got rid of the Wolfenstien team once that was finished.
- Tony Hawk Ride was an unmitigated disaster which is costing the company a huge amount of money. They have to do a sequel just so they can try get some sort of profit back on those boards
- DJ Hero lost them a lot of money but its Kotick's pet project so its getting a sequel.
- They fired the majority of Radical entertainment even though Prototype did decent sales (Though it had a hell of a development cycle and both Acti and Radical were at loggerheads by the end of it apparently).
- The Marvel licence is pretty much a goner or extremely limited due to the Disney/Marvel merger (They had to remove Marvel Ultimate Alliance 2 DLC for one).
- The Sony Animated pictures licence is gone (Ice Age etc) and the Dreamworks one probably soon to follow.
Generally, they have made money but they have absolutely screwed their future. And its even more apparent if this Lawsuit goes the wrong way since Call Of Duty and Blizzard are their only guaranteed profit avenues left. Unless they do a total 180 like EA did before they hit the brink. They are looking at a very shaky future.
Comment below viewing threshold Show
Just.. holy buggering slutbuckets this is absurd beyond all usable hyperbole.
EDIT: zuljin, you heard that too? Damn, next you'll tell me they're in cahoots with Glenn Beck.
Comment below viewing threshold Show
Comment below viewing threshold Show
Ahh irony, you cruel, cruel mistress.
When you look into the void, the void looks back at you etc. etc.
For shiksamam - you'll always get more people siding with the Artist than the Art Dealer. Especailly when you're talking amongst a group of people that includes a lot of artists and art-critics. Either way there will be a lot of paint spilt, and people are going to be tarred with the wrong brush. And I've really, really stretched this analogy.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
Ah, I obviously don't have your sharp legal mind and intimate knowledge of the details. Could you fax over those copies of the Activision/IW contractual agreements you have? If you could send it with an appendix containing the relevant statutes and case law that'd be grand. Cheers pal.
RobotRocker - I totally agree. I dissaprove of Kotick as much as the next human being but he is awesome at his job. I defy you to find one company of Activisions size, value and wealth that hasn't or doesn't act like a complete dick in the industry it operates in. That's where hyper capitalism takes us.
As for Activision's future, no-one on this site is particularly qualified to answer that, the best we can do is speculate absed on the drip of information that we have. Can I see where there revenues might come from? No, but they own about 15 studios that are capable of producing new games. Kotick and the board are not stupid (despite what people think) and if there is one thing they know how to do, it's make money. There's always licenses to acquire and games to be made.
I'm enjoying how people think I'm defending Activision because I love the company. I just don't buy into sensationalist 'gamer logic' crap.
Rangers - Good effort with that analogy anyway
Comment below viewing threshold Show
Comment below viewing threshold Show
All of these companies have done things far beyond anything Activision will ever do and 'word of mouth' spread about those to. I don't think they stand today too concerned about it though do you.
This story reaches people who buy gaming sites. All of the people that bought MW2 (the millions of them) aren't those people and will buy whatever game they want regardless of the business that makes them. For the people who do visit these sites a lot of people will STILL buy them. This is only the latest move in Activisions long history but check out the MW2 thread on the forums.
Seriously, at the end of the day all of this is irrelevant.
Comment below viewing threshold Show
I sincerely hope the ex Infinity Ward directors get their payout and get hired by EA!!
Comment below viewing threshold Show
I don't think Activision are purposefully being wankers, it's most likely that there could be a huge risk if IW were to stop the momentum of the current COD cash cow.
We as the 'hardcore' consumers prioritise a high quality well thought out product which we'd rather (within reason) wait for... Whereas a company as big as Activision probably wants to make the most out of the product whilst it is hot.
I don't think Activision are right to be doing this, but I can understand that there would be pressure to make money out of it whilst there is a hungry market. Sometimes the only way to make these things happen is to take legal action. The way in which they have played it, means that Activision as it stands have the control to keep the machine rolling without coming to a stand still.
Comment below viewing threshold Show
I certainly understand that companies such as these are under enourmous pressure from shareholders and internally to make money but there are ways of being ethical and doing that too. They could have spoken to IW about cash flow and offered them a better deal but paid over time for example.
I guess we won't know more till it all unfolds..
Comment below viewing threshold Show
But if the unlikely is the case and Activision had no evidence of their wrong doings, they will probably have to pony up the dough!
Comment below viewing threshold Show
Agreed. But the issue is that Kotick is trying to apply hyper capitalism to an industry that's falling in line with the creative industries very quickly. As I pointed out, they are having trouble trying to find staff since their reputation is making them inhospitable for an industry that relies on skilled workers. The major thing is in a creative industry is that you cant act like a dick or else employees will go elsewhere. Despite its reputation for anti-trust. Microsoft has always treated its workers incredibly well because they know they have to hold onto them or else they will just go elsewhere. A lot of British studios have tanked or lost a lot of talent because management is so full of twats that treated the workers like shit so they left at the end of projects when their contract was up and left the studio in the lurch. Telling your workers they are disposable is not a way to do it. McDonalds etc can because they rely on unskilled labour for their business. Activision cant.
While you say Activision are smart enough to avoid this. A lot of companies make seriously bad decisions. Enron for the most extreme example. Activision have even made some ridiculously boneheaded decisions themselves. The litigation against Brutal Legend for example and the creation of a division for exploiting the Guitar Hero franchise. We all know how that went.
Again, its rampant speculation but at the same time, from an economic perspective, they have been extremely short sighted recently and its only MW2 doing obscene amounts of business and Blizzard propping them up that have been keeping them in profit. But since these revelations hit, their future is looking seriously uncertain.
It's pretty simple, if the IW heads were negotiating contracts elsewhere they don't deserve to get paid.
According to California Labour Laws. Talking to another company about hiring/entrepreneurial activities is not grounds for dismissal unless its divulging trade secrets. So unless they were giving whoever they talked to a heads up on MW3. They were allowed to negotiate with someone else.
Comment below viewing threshold Show
Again, I'm certainly not advocating what's going on if it proves to be unethical... But I genuinely believe it will all come down to Activision choosing to remove what could potentially have turned into an obstruction to the companies plans with COD brand which they own. The grey area will be the 'Modern Warfare' part of it.
Comment below viewing threshold Show
I want to know damn it.
Although I'm sure that in one way or another Activision is being a big mean jerk as usual.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
What Kuntick fails to realise, is that if it's not made by Infinity Ward, it's not Call of Duty.
Withholding payment to the guys who've just made you a BILLION FUCKING DOLLARS is just the icing on a cake made of pure shit.
I really hope Activision lose, & these guys self-publish the next MW game.
Comment below viewing threshold Show
I'd love to be able to buy straight from the guys that made up IW and give them my money right into their pockets - rather than some third party go-between.
(Although I realise that this is what Steam really is. But they aren't like a power-hungry controlling diva queen, like Activision seems to be.)
Comment below viewing threshold Show
Interesting that almost everyone is siding with IW by default. Two sides to every story innit.
It's pretty simple, if the IW heads were negotiating contracts elsewhere they don't deserve to get paid. If there contract didn't guarantee payment regardless of employment at the given time and they were rightfully terminated, they don't deserve to get paid.
But if the unlikely is the case and Activision had no evidence of their wrong doings, they will probably have to pony up the dough!
imagine if you gave this answer in a Contract exam
Shikasama has been posting some sense.
Comment below viewing threshold Show
Comment below viewing threshold Show
Comment below viewing threshold Show
makes for some tasty reading
excerpt:
"Activision is run by a CEO who has been publicly quoted as believing that the best way to run a videogame studio is to engender a culture of "skepticism, pessimism and fear" and who prefers to pay his lawyers instead of his employees"
Comment below viewing threshold Show
That is some serious evil shit. Not quite Coca Cola death squads in South America but goddamn.
Comment below viewing threshold Show
Activision may go down as the most succesful software pirate of all time.
Oh Wait! I forgot about M$, make that second biggest software pirate.
Comment below viewing threshold Show
Comment below viewing threshold Show
"if there's any justice in this world they will"
Look around you. Look at the world around you. What do you think?
Comment below viewing threshold Show
"Unless they do a total 180 like EA did before they hit the brink. They are looking at a very shaky future."
I agree. What will happen though is by that time fat little Kotick will have taken the money and have jumped the sinking ship that was once Activision.
And, as Quint2020 said, if there is any justice in the world, Kotick would have to pay for his mismanagement. But realistically speaking, did any of the assholes on Wall Street who participated in bringing about the current US economic recession pay for their mistakes and/or crimes?
Comment below viewing threshold Show
Comment below viewing threshold Show
vote with your wallets &c
Comment below viewing threshold Show
Not that I was that partial to it anyway of course, but how often can they make the same old shit again and again before it starts to effect the national IQ average? At least this way CoD goes out on a high.
Let's hope FPS games try to grow a little now.