Support NeoGAF

angular graphics · Jun 13, 2013

http://www.pcgamesn.com/3d-realms-f...allegedly-unpaid-duke-nukem-forever-royalties

In a breach of contract suit filed in Texas on Friday, 3D Realms claim that Gearbox have failed to hand over all the cash stipulated in the purchase agreement the two companies signed in 2010, when Gearbox bought the rights to Duke Nukem Forever.

What’s more, 3D Realms say Gearbox have blocked an independent audit of the royalties they’ve earned on the game - something the 2010 purchase agreement should prevent them from doing.

“3D Realms has therefore been required to file this lawsuit to enforce the purchase agreement, to recover the amounts due and owing from Gearbox and to enforce the audit right provided by the agreement to enable it to conduct an audit of Gearbox's royalties,” the complaint reads.

Gearbox yesterday denied the allegations in an astonishingly frank assessment of DNF and its aftermath, however.

“The reality is that 3D Realms received the full benefit of its bargain,” the company told Law360. “Gearbox, in fulfillment of its commitments, enriched 3D Realms, saved 3DR from its debts and rescued 3DR from its failed dozen plus year attempt to ship [video game] Duke Nukem Forever.”

“Everyone wished that 3DR's game was better received by the market for the benefit of gamers and profit to its creators," Gearbox continued, twisting the knife. “While 3DR might not wish the reality that the results make clear, 3DR turned out to be the only beneficiary of the deal. Gearbox Software, meanwhile, experienced damage to its credibility and loss of its money.”

The 2010 deal saw Gearbox purchase limited rights to future games based on Duke Nukem, says the complaint - not only Duke Nukem Forever, but also something called Duke Begins (presumably an entirely new game Gearbox had planned at the time).

What’s more, Gearbox reportedly agreed to pay the $2.9 million in debt 3D Realms had amassed, as well as a percentage of the royalties on all future Duke Nukem games. It’s here that the heart of the two companies’ disagreement lies.

“Despite the assurance it provided to 3D Realms, Gearbox now claims that it is entitled to first deduct the full amount of the debt it assumed (i.e. the entire $2.9 million Duke Loan) before any royalty payments become due to 3D Realms,” the complaint says. “Thus, Gearbox is turning the tables.”

Anyone surprised?

mr_chun · Jun 13, 2013

lol'd at "damage to its credibility"

as if that's anything out of the norm for them

moltonasty · Jun 13, 2013

I expect a repeat next year: Sega sues Gearbox for embezzling funds, Pitchford says "Aliens sucked anyway"

famousmortimer · Jun 13, 2013

If anything gearbox should sue borderlands for making them think they have credibility.

Ignis Fatuus · Jun 13, 2013

Unpaid royalties, embezzled funds, where is that money going? Hookers and blow? Borderlands DLC?

Schnozberry · Jun 13, 2013

Everything's coming up Pitchford lately.

Jackl · Jun 13, 2013

Gearbox is getting seedy as all hell as of late.

neshoba78 · Jun 13, 2013

They probably stuffed all the money into Borderlands like a Christmas goose.

Glass Rebel · Jun 13, 2013

This is music to my ears. A company like Gearbox has no right to exist.

Sorry for the innocent employees but I'm sure they will find a good place with Borderlands on their resumes.

Papytendo · Jun 13, 2013

Looks like Gearbox just got shafted.

Auto_aim1 · Jun 13, 2013

3DRealms is incompetent, more so than Gearbox. I don't think Gearbox should give them anything.

angular graphics · Jun 13, 2013

famousmortimer said:
If anything gearbox should sue borderlands for making them think they have credibility.

Haha. I wouldn't be surprised. I mean Pitchford was like "OMG, DNF is amazing, you got to play it mannnn!!" and now they are like "3D Realms should be eternally thankful we released their POS of game, fuck off!"

:lol

ShockingAlberto · Jun 13, 2013

In a war between the village idiot and the town drunk, I pick no sides except whichever one gets to laugh at the ensuing chaos.

efyu_lemonardo · Jun 13, 2013

ShockingAlberto said:
In a war between the village idiot and the town drunk, I pick no sides except whichever one gets to laugh at the ensuing chaos.

Why did you lose that tag again?

AngelsDontBurn · Jun 13, 2013

Gearbox should hand it over, but they won't. Such a crap studio.

Oh, I mean, praise Randy Pitchford! He saved the PS4!

Protome · Jun 13, 2013

I think it's perfectly fair for Gearbox to try and make back the money they lost paying off 3DRealm's debts before giving them royalties and if poor wording of the original contract allows them to get away with it, all power to them.

Both companies are incredibly shady, but 3DRealms embezzled for 12 years, Gearbox only seems to have done it for a few...

Nairume · Jun 13, 2013

WraithBringer said:
Wow Gearbox love fucking people. 3D Realms, SEGA, TimeGate, Alien fans worldwide etc. Brilliant that. Because Gearbox single handedly made PS4 upgrade to 8GB of RAM too.

What a studio. *applauds*

Their visionary leader, THE MAGNIFICANT RANDY PITCHFORD, is also the true mastermind behind Ridley Scott sharing his masterpiece Prometheus with the world.

Thank you Randy.

Thank you.

massoluk · Jun 13, 2013

Before Aliens, I'd have sided with Gearbox on this. Now, not sure.

Neuromancer · Jun 13, 2013

Can we get an assessment from Phisheep? Simply not liking Gearbox doesn't mean that 3DR's case has merit.

Alec · Sep 13, 2013

3D Realms withdraws lawsuit against Gearbox

3D Realms has withdrawn its lawsuit against Gearbox. Filed in June, the lawsuit alleged that Gearbox blocked an independent audit to document royalties earned from Duke Nukem Forever. The original Duke Nukem developer sought $2 million in the lawsuit, but has now dropped the case entirely.

In a statement to the media, 3D Realms CEO Scott Miller said, "After reviewing evidence regarding our business affairs, and without any money exchanging hands, we have satisfactorily resolved any and all differences that we perceived against Gearbox."

Miller also offered "genuine apologies" to Gearbox CEO and President Randy Pitchford "for any damage that our lawsuit may have caused to the relationship."

I kinda wanna know what happened here.

Takao · Sep 13, 2013

Pretty weird resolution to have no money switch hands ...

Easy_D · Sep 13, 2013

Takao said:
Pretty weird resolution to have no money switch hands ...

Well. If 3DRealms found that Gearbox had indeed given them the money as the contract stated, no need for any more money switching hands, right?

Miles Quaritch · Sep 13, 2013

3DR turned out to be the only beneficiary of the deal. Gearbox Software, meanwhile, experienced damage to its credibility and loss of its money.

Hahaha. Go home Gearbox, you're drunk.

Takao · Sep 13, 2013

Easy_D said:
Well. If 3DRealms found that Gearbox had indeed given them the money as the contract stated, no need for any more money switching hands, right?

I guess, but people usually do their home work before launching a lawsuit.

Danny Dudekisser · Sep 13, 2013

Uh.... I skimmed that, but it sounds an awful lot like Gearbox saying "it didn't go as well for us as we wanted, so we're not complying with the contract."

And I can't allow myself to believe they'd be that ridiculous.

Edit: Oh. It was resolved. Well, fuck. I wanna know what happened now.

Savitar · Sep 13, 2013

Gearbox dicking everyone over while they ride that Borderland gravy train into the sunset....whose art style they also stole.

methane47 · Sep 13, 2013

Alec2DaBreen said:
3D Realms withdraws lawsuit against Gearbox

I kinda wanna know what happened here.

remember when Cheney shot the lawyer in the face,

Then The lawyer apologized to America for his fat face getting in the Way of Cheney's Buck Shot?

jaaz · Sep 13, 2013

Always bet on... aww never mind.

ZealousD · Sep 13, 2013

Takao said:
Pretty weird resolution to have no money switch hands ...

My guess is that Gearbox might have had the better case (or at least the better legal team) and was willing to go the full distance. 3D Realms might not have been so confident. No reason for Gearbox to pay if they thought they'd win.

Support NeoGAF

3DRealms sues Gearbox for unpaid DNF royalties; GBX: no & DNF sucked [3DR Drops Case]

Banned

Member

Member

Banned

Banned

Member

Member

Neo Member

Member

Member

MeisaMcCaffrey

Banned

Member

May I have a cookie?

Banned

Member

Banned

Banned

Member

Member

Banned

never left the stone age

Member

Banned

I paid good money for this Dynex!

Member

Member

Member

Makes world leading predictions like "The sun will rise tomorrow"

Similar threads