Activision rubbishes IP and studio acquisition lawsuit

Activision rubbishes IP and studio acquisition lawsuit
Michael French

By Michael French

April 16th 2009 at 10:03PM

Publisher bats eyelids and says it has saved 7 Studios in 'difficult economic times'

Further to our report earlier today that Activision had acquired the studio developing a title that rivals its UK-made DJ Hero game, the publisher has moved to dismiss claims made against it by Genius Products which asserted its actions were unlawful.

Earlier this week it transpired that Activision had bought 7 Studios m which is making Scratch: The Ultimate DJ, but that game's publisher filed a complaint with the L.A. Superior Court which said the publisher was trying to undermine the release of a game that competes with DJ Hero.

But today the court has refused to grant a restraining order against the firm.

Now Activision says the legal action was an attempt to place blame for the game's delay - and even reckons that it has saved 7 Studios from the threat of closure.

A statement from the firm released today said: "These allegations are nothing more than an attempt by Genius to place blame for the game's delay, as well as to divert attention from the cash flow, liquidity and revenue challenges Genius detailed in its March 30, 2009, SEC filing. By their own admission in October 2008, the game had fallen behind in production, which was well before Activision had any involvement with Genius, Numark or California 7 Studios regarding the game.

"The lawsuit will have no impact on Activision's upcoming DJ Hero(R) game, a turntable-based music game that the company has been independently developing.

"Activision purchased 7 Studios on April 6, 2009 to bolster its development capabilities. 7 Studios had continued to develop Scratch: The Ultimate DJ and Activision did not interfere with or delay their efforts to complete the game. In fact, Activision provided the fledgling developer with much needed financing during these difficult economic times."