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[Takao]

http://www.gamasutra.com/view/news/...:+GamasutraNews+(Gamasutra+News)#.UJG3O4as_AQ

An independent game studio is bringing Japanese publisher Marvelous AQL to court, claiming that it tried to initiate a hostile takeover and poach its employees in order to avoid a $2.5 million payment.

According to a complaint filed in a California civil court this month by CEO Brian Wiklem, the story began late last year, when Marvelous paid his studio Checkpoint a total of $2.5 million in start-up costs in exchange for a 35 percent share of the privately-owned company and two shipped games by the end of 2012.

Wiklem was to retain the remaining 65 percent, and as part of the deal, Marvelous promised to negotiate a similar deal in good faith for another $2.5 million to ship more titles in 2013.

The two games -- AviNation and Party Politics -- were released, but according to Wiklem, Marvelous refuses to negotiate for 2013, and has also withheld other unrelated payments.

Instead, the suit alleges, Marvelous and former Checkpoint CTO Christopher Masterton "conspired to try to engineer a hostile takeover of Checkpoint."

Wiklem had by this point sold a 24 percent share of the company to Masterton. Apparently Masterton flew out to Japan in September to meet with Marvelous without notifying Wiklem, allegedly to try to sell those shares and give Marvelous majority ownership of the studio.

Contractually, Marvelous wasn't able to purchase those shares without Wiklem's consent. And besides, even if they did have a majority ownership, they wouldn't have had control of the board, as Masterton's shares did not have any voting rights.

Instead, the complaint says, Marvelous hired Masterton away to work at its U.S. subsidiary, XSeed, as well as 14 more of Checkpoint's key development staff, leaving the company gutted and unable to ship product.

The suit claims that the former employees are illegally using Checkpoint-developed technology and assets over at XSeed. Further, apparently Masterton is refusing to provide the login and passwords for "various essential Checkpoint accounts," including its Facebook page.

"These purely malicious actions have no purpose other than to prevented [sic] Checkpoint from effectively doing business, which they have done," the complaint reads, saying that this intentional harm "is part of [Marveous and Masterton's] conspiracy."

The suit claims that Checkpoint has been damaged to the tune of "at least $5 million."

Checkpoint is suing Marvelous, Masterton, XSeed and ten unnamed additional parties on several counts, including a breach of contract, a breach of Marvelous and Masterton's fiduciary duties as board members, and the theft of trade secrets, among other claims.

The attorneys representing Checkpoint offered some points of clarification for this article, but would not give a further statement. MarvelousAQL simply says that it "has no comment."

 

[PixyJunket]

Now we'll never get Trails in the Sky 2.

 

[pje122]

Good Lord...

 

[adroit]

Wow. What a mess.

(I didn't know XSEED was a subsidiary of Marvelous AQL. Interesting.)

 

[Oddduck]

Curious to see how it will all pan out for both sides.

 

[Takao]

I have to wonder what technology they're saying XSEED is using. They don't do any development in house as far as I know (if they did, they wouldn't have had to can Grand Knights History), and I doubt they suddenly hired 14 additional people in the past year. Maybe they mean Marvelous USA?

 

[Ravidrath]

This article was incredibly strange to read, as I've worked with both of the people mentioned in it.

Based on those experiences, I have automatic and visceral reactions to who is the right here.

 

[redlemon]

The whole thing sonds fairly plausable until he claims XSEED has 14 extra employees. Don't they have like only 6 or so people working there?

 

[jooey]

This article was incredibly strange to read, as I've worked with both of the people mentioned in it.

Based on those experiences, I have automatic and visceral reactions to who is the right here.

k thx

 

[Hours Left]

I don't think XSEED even has 14 employees total, let alone 14 new hires.

 

[B.K.]

Now we'll never get Trails in the Sky 2.

We weren't going to anyway.

 

[Eusis]

We weren't going to anyway.

boothisman.gif

Ok I'm not very optimistic on the PSP front, but PC?

 

[Dennis]

Someone get to the bottom of this.

Game journalists, here is your chance to shine.

 

[LiK]

Someone get to the bottom of this.

Game journalists, here is your chance to shine.

.

 

[Squire]

Inb4 east vs. west bullshit.

 

[Hours Left]

boothisman.gif

Ok I'm not very optimistic on the PSP front, but PC?

I think PC and PS3 versions are still a very viable option.

 

[A.E Suggs]

I hope a certain member on gaf sheds some light on this.

 

[Takao]

I don't think XSEED even has 14 employees total, let alone 14 new hires.

I'm thinking it might be Marvelous USA. They suddenly re-appeared recently, and I don't think that Half Minute Hero PC port was done in Japan.

 

[Macstorm]

I don't know the business workings of the Marvelous/XSEED relationship, but I was inside XSEED's office in August and there were no extra folks hanging around. If this is happening, they are not working directly with XSEED in the same office.

 

[Corto]

Someone PM jschreier.

 

[lupinko]

Inb4 east vs. west bullshit.

2Pac > Biggie

 

[djtiesto]

2Pac > Biggie

As an east coaster, and someone who prefers eastern video games, I still agree with this statement

 

[Arrei]

I've been trying to see if any place had more info available, but details are sparse... the biggest thing that leaped out at me was when XSeed got involved though, that part just doesn't make sense. Doubling their staff (or more, judging by what I can find from how small their company is) from a decision made by Marvelous, when XSeed for the most part just co-publishes some games with Marvelous while they do their own thing, and using Checkpoint's "technology and assets" when the only things XSeed does is localization and a bit of programming to get games onto Steam?

 

[Macstorm]

I've been trying to see if any place had more info available, but details are sparse... the biggest thing that leaped out at me was when XSeed got involved though, that part just doesn't make sense. Doubling their staff (or more, judging by what I can find from how small their company is) from a decision made by Marvelous, when XSeed for the most part just co-publishes some games with Marvelous while they do their own thing, and using Checkpoint's "technology and assets" when the only things XSeed does is localization and a bit of programming to get games onto Steam?

Again, XSEED does not have double the staff. Was in the office, there was not room for that many people. Was barely room for the seven or eight they have.

 

[donkey show]

As an east coaster, and someone who prefers eastern video games, I still agree with this statement

That's why I f...

Oh, cool deal man.

 

[adroit]

Total Speculation Mode: Could XSEED have teamed up financially with Marvelous USA to pull this thing off? Maybe the staff will be at Marvelous USA but shared between the two companies (so XSEED can do more than just translation work). This is just wild-ass speculation. I'm just trying to figure out how XSEED could be named in this lawsuit.

 

[Macstorm]

Total Speculation Mode: Could XSEED have teamed up financially with Marvelous USA to pull this thing off? Maybe the staff will be at Marvelous USA but shared between the two companies (so XSEED can do more than just translation work). This is just wild-ass speculation. I'm just trying to figure out how XSEED could be named in this lawsuit.

Marvelous USA and XSEED were both owned by Marvelous AQL. And I'm pretty sure there never was a Marvelous USA outside of just a name and maybe an exec hoping to ramp things up, but that didn't happen.

 

[adroit]

Marvelous USA and XSEED were both owned by Marvelous AQL.

Oh, duh, I forgot I learned that earlier in this thread. Geez, inadequate brain capacity here.