Take-Two vs. 3D Realms

[MC]

Update: Documents for the case have appeared online, revealing that, among other things, Take-Two is demanding a copy of the Duke Nukem Forever source code.

Original: Take-Two Interactive, publisher of Duke Nukem Forever, has filed suit against the remains of Apogee Ltd./3D Realms for failing to deliver the long-awaited title.

Take-Two claims that an agreement to finish the shooter was breached when 3D Realms shut down development last week. At the time of the studio's closing, Duke Nukem Forever had been in development for over 12 years.

"Apogee continually delayed the completion date for the Duke Nukem Forever," says Take-Two in the complaint, according to Bloomberg. "Apogee repeatedly assured Take-Two and the video-gaming community that it was diligently working toward competing development of the PC Version of the Duke Nukem Forever."

Take-Two paid $12 million to former DNF publisher Infogrames for the exclusive publishing rights to the game in 2000. According to the publisher, a second unspecified agreement was struck between Take-Two and 3D Realms in 2007.

Following the closure last week, Take-Two spokesman Alan Lewis confirmed that the publisher was not providing 3D Realms with "ongoing funds for development of the title."

The two companies were on less than cheery terms during development of the game. After Take-Two publicly expressed hope that 3D Realms would finish the game in 2003, 3D Realms president George Broussard famously reminded Shacknews users that the game was self-funded, saying: "Take Two needs to STFU imo."

The details of the 2007 agreement have not yet been revealed, and may be key to determining how the lawsuit will proceed.

Apogee Software, Ltd is the official title of 3D Realms. The company abandoned the Apogee name in 1996 in favor of the 3D-oriented title. Apogee Software, LLC, an external publisher established in 2008, remains in operation.

Source: http://www.shacknews.com/onearticle.x/58642

The first legal documents filed by publisher Take-Two in its lawsuit against Duke Nukem Forever developer 3D Realms have been released.

The documents amount to a call for a restraining order and a preliminary injunction, essentially a move to force 3D Realms to keep the Duke Nukem Forever assets intact during proceedings.



The order would force 3D Realms to "mantain and enforce all security measures necessary to preserve the integrity of [the Duke Nuke Forever source] code," as well as prevents them from "disclosing, distributing transfferring or selling...any proprietary information related to DNF."

Take-Two claims that it is owed "millions of dollars" by 3D Realms for breaking an agreement to finish the game. The publisher also requested a copy of the existing Duke Nukem Forever source and object code "to ensure the code is preserved and remains unharmed during the pendency of this lawsuit."

Meanwhile, 3D Realms co-founder Scott Miller last night issued the first public comment from the company on Shacknews. Miller was replying to a user question of whether 3D Realms saw any of the $12 million that Take-Two paid Infogrames for the DNF publishing rights in 2000.

"No. We didn't get a penny of that money," said Miller. "This, along with so much else, is 100% spin, being eaten up by those who have no clue whatsoever."

Miller added that 3D Realms will have more to say on the matter "soon"--though Take-Two expects to go to trial no earlier than 9-12 months.

Source: http://www.shacknews.com/onearticle.x/58651

 

[The Deco]

Why won't they just give them the source code? After all, they(3D realms) aren't going to do anything with it now...

 

[Deathshot]

They want the name to be remember by them instead of a new company I guess.

 

[MC]

The remaining executives at Duke Nukem Forever developer 3D Realms have responded to the charges levied against them by DNF publisher Take-Two, stating that 3DR never received funds from Take-Two for DNF until a payment in 2008.

3D Realms also sought to clarify reports that it had completely closed, saying that it is now planning to "regroup" as a company after spending nearly $20 million on the unfinished title in question.

"While 3DR is a much smaller studio now, we will continue to operate as a company and continue to license and co-create games based upon the Duke Nukem franchise," it said in a release.

"Take-Two never paid 3DR advances or any signing bonus or any other funds related to DNF, up until July 2008, at which time they paid $2.5m in connection with another agreement for an unannounced game," added the company. "This is the sum total Take-Two has paid 3DR in connection with DNF."

Take-Two filed suit against 3D Realms last week, claiming that it was owed "millions of dollars" after 3D Realms failed to finish DNF. The game had been in development for over 12 years until a "lack of funding" abruptly shut down production.

According to 3D Realms, Take-Two did eventually offer 3D Realms a "last minute" proposal to acquire the Duke Nukem franchise and the 3DR development team. 3DR says that it refused the offer, and claims that the deal included "no upfront money, no guarantee minimum payment, and no guarantee to complete the DNF game."

The release includes 3DR's take on the negotiation proceedings between the two companies:

Take-Two retains publishing rights for the DNF game, although 3DR retains certain rights to sell the game directly to the public. Late last year, 3DR began negotiations with Take-Two to provide funding to complete the DNF game. In the meantime, 3DR was hitting mutually-agreed milestones, despite not having a new agreement finalized. Take-Two was well aware that 3DR needed the funding to continue the DNF game development. Suddenly, after months of negotiations, Take-Two materially changed the parameters of the proposed funding agreement. 3DR informed Take-Two that it could not financially afford the changes Take-Two was suggesting and would be forced to release the team if an agreement was not reached.

Take-Two made a last minute proposal to acquire the Duke Nukem franchise and the 3DR development team. Take-Two's proposal was unacceptable to 3DR for many reasons, including no upfront money, no guarantee minimum payment, and no guarantee to complete the DNF game. From 3DR's perspective, we viewed Take-Two as trying to acquire the Duke Nukem franchise in a "fire sale." Those negotiations fell through on May 4th, a deal never materialized, and the DNF team was sadly released a few days later.

The full statement can be found here.

Source: http://www.shacknews.com/onearticle.x/58681

Here's the full statement:

Dallas, TX (May 18, 2009) - In light of recent press articles and statements by Take-Two (to the media and in a lawsuit), we want to set the record straight on some issues.

Despite rumors and statements to the contrary, 3D Realms (3DR) has not closed and is not closing. 3DR retains ownership of the Duke Nukem franchise. Due to lack of funding, however, we are saddened to confirm that we let the Duke Nukem Forever (DNF) development team go on May 6th, while we regroup as a company. While 3DR is a much smaller studio now, we will continue to operate as a company and continue to license and co-create games based upon the Duke Nukem franchise.

As some of you may know, Take-Two filed a lawsuit last week containing various accusations and claims against 3DR and the uncompleted DNF game. Take-Two never paid 3DR advances or any signing bonus or any other funds related to DNF, up until July 2008, at which time they paid $2.5m in connection with another agreement for an unannounced game. This is the sum total Take-Two has paid 3DR in connection with DNF. Take-Two claims that they paid $12m to GT Interactive/Infogrames to acquire the publishing rights for the DNF game. To be clear, 3DR was not a party to that transaction and did not receive any money from it. When the DNF game was originally signed with GT Interactive in 1998, GT paid 3DR a $400,000 signing bonus. Up until July 2008, this was the only publisher money we received for the DNF game. Meanwhile, 3DR put over $20m into the production of DNF.

Take-Two retains publishing rights for the DNF game, although 3DR retains certain rights to sell the game directly to the public. Late last year, 3DR began negotiations with Take-Two to provide funding to complete the DNF game. In the meantime, 3DR was hitting mutually-agreed milestones, despite not having a new agreement finalized. Take-Two was well aware that 3DR needed the funding to continue the DNF game development. Suddenly, after months of negotiations, Take-Two materially changed the parameters of the proposed funding agreement. 3DR informed Take-Two that it could not financially afford the changes Take-Two was suggesting and would be forced to release the team if an agreement was not reached. Take-Two made a last minute proposal to acquire the Duke Nukem franchise and the 3DR development team. Take-Two's proposal was unacceptable to 3DR for many reasons, including no upfront money, no guarantee minimum payment, and no guarantee to complete the DNF game. From 3DR's perspective, we viewed Take-Two as trying to acquire the Duke Nukem franchise in a "fire sale." Those negotiations fell through on May 4th, a deal never materialized, and the DNF team was sadly released a few days later.

Less than a week after the DNF team was released, Take-Two filed its lawsuit in New York, seeking immediate temporary injunctive relief. The court denied Take-Two's request for a temporary restraining order. While we cannot comment on the details of the ongoing lawsuit, we believe Take-Two's lawsuit is without merit and merely a bully tactic to obtain ownership of the Duke Nukem franchise. We will vigorously defend ourselves against this publisher.

Source: http://www.shacknews.com/docs/press/20090518_dnf_3dr_.x

 

[MC]

And so, it continues:

It's no secret that the somewhat grim and public airing of dirty Duke Nukem Forever laundry has been the hot topic of conversation over the past month or so. Today, Apogee Software Ltd. (3D Realm's parent company) has filed new paperwork in an attempt to disprove Take-Two's allegations.

According to the paperwork which can be found in full over on VoodooExtreme, Take-Two was secretly working on a new game in the Duke franchise called Duke Begins. The game was apparently going to be released sometime in 2010 and was being developed in conjunction with an unnamed third-party outfit.

Development was due to be completed by mid-2010, but was mysteriously suspended in April 2009. 3D Realms alleges that Take Two cancelled the game to restrict 3D Realms' income, giving Take Two the ability to purchase the Duke Nukem rights at a lower cost because 3D Realms would be desperate for any cash to keep their studio afloat, especially as they would be unable to repay the $2,500,000 royalty advance due 2012.

Amid its rebuttals, 3D Realms also revealed that they've pumped over $20,000,000 of their own money into Duke Nukem Forever's development, which is presumably on top of the advances they received. To put that figure in perspective, Grand Theft Auto IV cost around $100,000,000, Halo 3 $30,000,000, and Killzone 2 $40,000,000.​

VE has scanned in all of the documents pertaining to this latest volley of legal artillery fire, and while 3D Realms claims to still be in development with the DNF project, only time will reveal exactly how this will all play out in court.

Source: http://pc.gamespy.com/pc/duke-nukem-forever/996949p1.html

In response to allegations made by Take Two, Apogee Software Ltd. (3D Realms) has filed new paperwork with the New York Southern District Court, denying the majority of the publisher's claims, and in the process revealed that Take Two was developing a new Duke game with a third-party studio, which went by the name of Duke Begins.

Development was due to be completed by mid-2010, but was mysteriously suspended in April 2009. 3D Realms alleges that Take Two cancelled the game to restrict 3D Realms' income, giving Take Two the ability to purchase the Duke Nukem rights at a lower cost because 3D Realms would be desperate for any cash to keep their studio afloat, especially as they would be unable to repay the $2,500,000 royalty advance due 2012.

Amid its rebuttals, 3D Realms also revealed that they've pumped over $20,000,000 of their own money into Duke Nukem Forever's development, which is presumably on top of the advances they received. To put that figure in perspective, Grand Theft Auto IV cost around $100,000,000, Halo 3 $30,000,000, and Killzone 2 $40,000,000. Difference being, the aforementioned games had publishers funding development, whereas 3D Realms has flown solo for the past thirteen years to retain complete control of intellectual property rights. Interestingly, 3D Realms claims that development continues on Duke Nukem Forever, but with what staff and what cash remains unclear.

As an extra special treat, we've merged Take Two's argument and Apogee's counter-argument into one document that you can view below, but if you'd rather skip straight to the Duke Begins talk, click here.

Source: http://ve3d.ign.com/articles/news/4...-DNF-Denies-Allegations-Reveals-New-Duke-Game

 

[Deathshot]

Hahahaha Duke Nukem is doing his job.

He is really ****ing **** up. *Thumbs up to Duke Nukem*

He really does have balls of steel.

 

[Nuttzy]

meh, im not sure what the argument is to be honest. I didnt feel like reading all of it.

but if company A paid company B to make a game, which they were unable to do. They shouldve been required to give them what WAS created no questions asked.

it only makes sense >_>.

 

[Grega]

meh, im not sure what the argument is to be honest. I didnt feel like reading all of it.

but if company A paid company B to make a game, which they were unable to do. They shouldve been required to give them what WAS created no questions asked.

it only makes sense >_>.

But acording to company B company A didnt give a dime, instead company B was paying for the proyect themselves.

 

[Deathshot]

So how do you rule this case?

 

[Barney]

I'm gonna guess they're going to make Take-Two pay for the code if they want to finish it themselves. I hope they do, the game has been in development for too long not to be finished even at this point.

 

[Nuttzy]

i think its kinda past the point for duke to make a comeback anyways,

unless they manage to make a viral'ish" series of commercials for it akin to the "balls of steel" ventrillo harassment video, that would make it fly off the shelves i guarantee you =P



at this point i really dont see why they dont just use the unreal3 engine and save themselves a ****-ton of work, and/or development time.

 

[wheres_]

i think its kinda past the point for duke to make a comeback anyways,

unless they manage to make a viral'ish" series of commercials for it akin to the "balls of steel" ventrillo harassment video, that would make it fly off the shelves i guarantee you =P



at this point i really dont see why they dont just use the unreal3 engine and save themselves a ****-ton of work, and/or development time.

Because then Duke would turn out like all the other bland games on that engine.

 

[Deathshot]

Well, if they switched over to the Source Engine like Postal 3 did, then maybe they would have it out easily too.

But I guess they want to be original too.

 

[Nuttzy]

Because then Duke would turn out like all the other bland games on that engine.

eh, so far the only "bland" game ive played on the unreal engine was Unreal itself.

 

[Mkilbride]

eh, so far the only "bland" game ive played on the unreal engine was Unreal itself.

Damnation.

Worse mod to come to Retail ever. It was so bad, I uninstalled it a mere 30 minutes in. Animations, voices, combat, everything about it was mod quality, not even POLISHED mod quality, so unlike KF, I could not forgive it.