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Section 8 Developer Facing 7.3M in Damages

Posted on April 18, 2013 AT 03:05pm

After losing a court appeal over a fraud suit between themselves and publisher SouthPeak Interactive, TimeGate Studios faces 7.35 million in damages and the loss of the Section 8 license.

In 2009, TimeGate sued SouthPeak Interactive, claiming the publisher withheld royalties and did not deliver on their responsibilities localizing Section 8. After SouthPeak filed a countersuit, third party arbitration ruled in favor of SouthPeak, awarding them $7.35 million in compensatory damages and the Section 8 license. That decision was then overturned last March.

The U.S. Court of Appeals for the Fifth Circuit as of April 9 has now reinstated the arbitration award for SouthPeak, meaning TimeGate must pay the $7.35 million to SouthPeak and turn over the Section 8 IP unless they can successfully file to appeal the court decision.

TimeGate Studios co-developed Aliens: Colonial Marines with Gearbox. They announced their latest project, Minimum, multiplayer shooter, on the same day as the court decision: April 9.

Source: Polygon

Chris Holzworth, News Editor
Chris Holzworth has wanted to write about games all his life. He first cut his teeth writing for enthusiast sites such as RPGFan, and after writing for just about every other enthusiast website he could came across, wound up as EGM's east coast news correspondent (read: editorial intern) before relocating to LA to serve as news editor. You can follow his rants about storytelling on Twitter @manadrive.[Meet the rest of the crew]

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