The latest news in the Activision versus Infinity Ward (IW) saga is that a total of 38 current and former Infinity Ward staff have filed a lawsuit against Activision, claiming between US$78 and US$125 million (±R580 and R929 million). The 38 plaintiffs, 17 of whom are still employed at Infinity Ward, make up 40% of the team that developed Modern Warfare 2.<\/p>\n
Under the collective name of The Infinity Ward Employee Group (IWEG), they allege that Activision is in breach of contract, in breach of the implied covenant of good faith and fair dealing, in breach of California labour laws, and much more. The legal documents state that whilst US$28 million has been paid to employees so far, at least US$54 million is still owed from 2009 profits alone.<\/p>\n
The lawsuit goes on to list numerous areas where compensatory damages are sought, according to the original contract set out by Activision: Unpaid bonuses from Q4 2009 and Q1 2010; bonuses due beyond Q1 2010; any profits, royalties, or bonuses due from use of the core technologies of the game engine; lost value on Activision stock units which were promised to employees once MW2 sales surpassed MW1; money owed for sister games to MW2, and even a Modern Warfare 3 title should it ever emerge; and finally, interest applied to all of the above.<\/p>\n
IWEG contends that the only condition in place for being eligible for all of the aforementioned bonuses, was delivering the game in time for the 10 November 2009 launch, which IW met. Furthermore, IWEG is seeking up to US$500 million in punitive damages, a figure based on the sales of MW2 and Activision’s net worth.<\/p>\n
Thanks to an extensive report from G4TV.com <\/a>allegations have emerged from an IWEG legal representative that Activision has withheld the bonus payments in an attempt to force Infinity Ward employees to remain with the publisher in order to finish Modern Warfare 3.<\/p>\n Activision has responded by stating: “Activision believes the action is without merit. Activision retains the discretion to determine the amount and the schedule of bonus payments for MW2 and has acted consistent with its rights and the law at all times. We look forward to getting judicial confirmation that our position is right.”<\/p>\n In the beginning…<\/strong><\/p>\n Readers may recall the initial waves of shock as on 1 March 2010 the news began to filter through social networking sites, that Infinity Ward co-founders, CTO Jason West and CCO Vince Zampella, had been let go from the company. Activision stated that they were “concluding an internal human resources inquiry into breaches of contract and insubordination by two senior employees at Infinity Ward,” resulting in “the departure of key personnel and litigation.”<\/p>\n Around 5 March, news emerged that West and Zampella were suing Activision for US$36 million and upwards for breach of contract and control of the Modern Warfare brand. The pair’s lawyer stated that Activision had breached the terms of its employment contract and violated Californian laws. It was also alleged that Activision conducted a pretextual investigation into the charges of ‘insubordination’ and ‘breach of fiduciary duty,’ which were the grounds of their termination. Activision responded by saying the claims were meritless.<\/p>\n Slowly but surely, senior members of the development team began to depart from the studio. News sites such as Kotaku had reports from anonymous Infinity Ward insiders making statements such as “Infinity Ward as you know it is dead, and will continue to crumble.”<\/p>\n Activision of course tried to appear optimistic, announcing new Call of Duty titles, before deciding to issue their inevitable counter-suit on 8 April. Activision’s legal documents accuse West and Zampella of being self-serving schemers who attempted to hijack Activision assets for personal gain, and go on to blame the pair for withholding bonuses from other IW employees in some sort of conspiracy to make Activision look like bad employers. Activision also alleges that the pair were in breach of their contract by meeting with rival companies. The duo’s lawyer has rejected the allegations as “false and outrageous.”<\/p>\n Respawn<\/strong><\/p>\n Mere days later, on 12 April, West, Zampella and EA announced a deal forged under the EA Partners program, which allows developer’s access to EA’s publishing muscle, whilst retaining their independence, and most importantly to West and Zampella, their intellectual property. The aptly named Respawn Entertainment was formed.<\/p>\n Despite looking suspicious in the light of Activision’s accusations, West dismissed the conspiracy theory by saying in an interview with GameSpo<\/a>t, “That’s all false and outrageous nonsense from Activision.” Respawn has since taken on seven former Infinity Ward staff who were lead and senior developers from MW2. The total number of IW departed sits at 26.<\/p>\n Activision is trying to appear optimistic despite everything, making statements along the lines of how the young talent will begin to shine through, and the vacating employees are losing out on their bonuses. Of course, protecting the image of the billion dollar earning development studio brand would probably be a priority for Activision.<\/p>\n It remains to be seen whether the general gaming public will realise or care that the core development talent behind the biggest selling entertainment title launch of all time (Guinness World Record approved<\/a>) has abandoned the Infinity Ward brand come the next iteration in the Call of Duty series slapped with the studio’s name.<\/p>\n The legal battle<\/strong><\/p>\n It would appear the IWEG is interested in combining their legal action with that of West and Zampella, as they relate primarily to the same issues. Of the 38 IWEG plaintiffs, seven are currently known to be employed with Respawn Entertainment. Perhaps two disgruntled employees is an issue that can be shrugged off, but with 40 people ready to stand up to the publishing giant, it makes one wonder if they might just have a sound legal case.<\/p>\n This lawsuit has the makings of something monumental in the history of the gaming industry. Be sure to add your opinions in the forums.<\/p>\n