Activision Sued Over Contract for "Scratch DJ" Game

Authored by Mark Hefflinger on April 15, 2009 - 8:28am.

Santa Monica, Calif. - Video game publisher Activision (NASD: ATVI) and developer 7 Studios have been sued for intentional interference with contract, breach of contract, and conversion and misappropriation of trade secrets related to the development of a hip-hop music-themed game called "Scratch: The Ultimate DJ."

Scratch DJ Game LLC, a joint venture between Genius Products and Numark, a maker of pro DJ and audio equipment, filed suit alleging that Activision first approached Genius about acquiring Scratch, and when rejected, then looked to acquire 7 Studios -- which was contracted with Genius to develop Scratch.

The plaintiffs allege that Activision broke a non-disclosure and confidentiality agreement with Genius in its dealings with 7.

After the acquisition, Activision and 7 then allegedly "began conspiring to prevent Scratch from getting to market on a timely basis by withholding work product, code and the proprietary game controller."

"We believe Activision concluded that Scratch: The Ultimate DJ is a superior offering to their prospective game, DJ Hero," said Genius president and CEO Trevor Drinkwater.

"We believe that Activision is attempting to sabotage the release of our much anticipated game and prevent it from getting to market prior to the release of DJ Hero."

http://www.geniusproducts.com

http://www.numark.com