Crytek Breach of Contract Lawsuit Highlights Digital Assets

Crytek Breach of Contract Lawsuit Highlights Digital Assets
Crytek Breach of Contract Lawsuit Highlights Digital Assets

Star Citizen is one of the most anticipated video games in development. Developed by Cloud Imperium Games (CIG), Star Citizen has promised a universe of opportunities for the gaming community to explore, conquer, and customize. And while gamers anxiously anticipate a release date, it is not the graphics or “unparalleled immersion” that has media buzzing – it is the recent breach of contract lawsuit filed by Crytek against CIG and its parent company Roberts Space Industries (RSI).

Crytek Contract Information

Crytek is a video game developer, technology provider, and publisher. Crytek has been instrumental in creating some very popular video game titles, including Far Cry and Crysis. Crytek is also the developer and platform for an innovative video game development system called CryEngine. CryEngine is said to offer developers some of the most advanced video game development tools available.

During the early development of Star Citizen, RSI owner Chris Roberts entered into a contract with Crytek for use of CryEngine to develop the intensely complex game. Roberts and CIG spent considerable time rewriting the engine, and engaged in several disputes with Crytek over the product and its use. Those disputes have resulted in a lawsuit alleging RSI and CIG breached the contract and used Crytek assets without authorization.

Crytek Breach of Contract Lawsuit Information

Disagreements between Crytek and CIG date back to 2016 when Crytek informed CIG that they were in breach of contract after CIG announced that two game play titles would be developed (single and multiplayer) instead of just one, which was outlined in the contract. Crytek claimed they would be owed a licensing fee on the second title as well, but resolution was unclear.

Crytek then filed a lawsuit with numerous complaints including:

  • Breach of contract by developing two titles instead of one
  • A break in licensing agreement terms after RSI agreed to display Crytek branding and trademarks, but then removed these notices from the game after referring to the developing platform as “Star Engine” instead of CryEngine.
  • Violating Section 2.1.1. of the Game Licensing Agreement (GLA) after CIG used Lumberyard to develop parts of Star Citizen after entering a contract expressly forbidding the company from using any platform other than CryEngine.
  • Failing to periodically provide Crytek with optimizations and bug fixes written by CIG using the CryEngine system.
  • Sharing source code with third-party developers without seeking approval from Crytek, or informing Crytek of its intent or action to do so.

Crytek is seeking in excess of $75,000 in damages, and has requested a jury trial. CIG and RSI have remained quiet about the situation thus far.

Breach of Contract Lawsuit Highlights Digital Assets

Lawsuits like this one highlight digital assets and their important role in many of today’s technological industries. Whether it is a development platform, source code, software, or other digital tool, it is important as a business owner to protect these assets and your business.

Breach of contract disputes can have a very negative impact on your business’s security, finances, and future integrity. Any time a dispute or contractual disagreement arises, it is always recommended that you contact a business litigation or corporate law attorney right away to discuss your legal rights and the best options for resolution.

At Daic Law, we take pride in supporting our clients and helping them protect their businesses and assets. If you find yourself in the midst of a breach of contract dispute, contact us to get the legal guidance you need. Call us at (713) 808-5246 or email us at info@daiclaw.com.

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Sources

Crytek Sues Star Citizen Developer For Breach of Contract

https://www.scribd.com/document/367120501/Crytek-GmbH-versus-Cloud-Imperium-Games-Corporation-and-Roberts-Space-Industries-Corporation#fullscreen&from_embed