NEWS - Tuesday, January 22, 2013


South Park Studios moving to block THQ sale

 

South Park Digital Studios LLC, the company that owns the South Park license, filed an objection in Delaware bankruptcy court recently to prohibit the sale of South Park: The Stick of Truth unless several conditions are met during THQ’s upcoming bankruptcy proceedings, according to documents filed in the Delaware court.

The objection asks the court to deny the sale of South Park: The Stick of Truth unless South Park Digital Studios consents to the sale transfer of any South Park licenses, receives a payment of $2.275 million for defaulted payments and "adequate assurance of future performance" for the game.

According to objection filed by South Park Digital Studios (PDF link) dated Jan. 18, the Studio and THQ entered into an agreement referred to as a "Deal Memo" on June 29, 2011 to license the South Park intellectual properties for useSouth Park: The Stick of Truth, which would be developed for THQ by Obsidian Entertainment.

South Park Digital Studios objects to the proposed sale, stating in the document that "applicable law excuses Licensor from accepting performance from or rendering performance to a party other than THQ." Furthermore, even if the acquisition were possible, THQ has "not provided adequate assurance of future performance of the Deal Memo in the hands of a prospective purchaser." The sale would require South Park Digital Studios’ consent because the elements being sold are owned and licensed by the studio.

"APPLICABLE LAW EXCUSES LICENSOR FROM ACCEPTING PERFORMANCE FROM OR RENDERING PERFORMANCE TO A PARTY OTHER THAN THQ."

According to the objection, the Deal Memo affords South Park Digital Studios "the option to acquire from THQ all elements of the South Park game and related products in the event of THQ’s breach, provided that Licensor pays to THQ the actual costs incurred and paid by THQ."

In THQ’s Jan. 21 reply (PDF link), the company argues that the license was exclusive, which makes it eligible for sale under the Copyright Act of 1976. THQ’s response cites redacted sections of the Deal Memo to demonstrate the "plain language of the contract."

THQ’s document also states that it is "currently evaluating" South Park Studios’ claims of monetary defaults and that the company intends to "provide an appropriate evidentiary record at the Sale Hearing for the Court to determine that the adequate assurance requirements ... have been satisfied."

THQ’s financial troubles came to a head earlier this year when the studio announced that its games would be sold "title by title" in an auction scheduled for today, Jan. 22. Five companies, including Electronic Arts and Warner Bros., are said to be potential buyers.

 


Source: www.polygon.com

Site Statistics

Registered Members: 49,923
Forum Posts: 725,921
Xbox One Titles: 3,024
Xbox 360 Titles: 1,086
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 586
Original Xbox Titles: 987
Staff Reviews: 2,070
Member Reviews: 10,339
News Articles: 15,706
Screenshots: 34,368
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Watch Dogs: Legion
Post by Nato King
0 Replies, 15911 Views

Xbox Series X or S
Post by Nato King
5 Replies, 18361 Views

Spellbreak Grand Magus Pack (3) and Starter Pack (7) Giveaway!
Post by Variation-XBA
0 Replies, 14848 Views

I pay $ 1000! I search the Element 54 Canadian launch Team signaturen Faceplate
Post by Smill
0 Replies, 14136 Views

Xbox one no signal
Post by debrartin
0 Replies, 38909 Views

do you remember?
Post by SnoochyBoochy
3 Replies, 40518 Views

i haz xbox
Post by SnoochyBoochy
0 Replies, 35626 Views

Claiming the first thread of 2020
Post by Kraft
7 Replies, 62312 Views

Important! I pay $ 1000! I search the Sweden launch and the Element 54 Faceplate
Post by Smill
3 Replies, 25164 Views

Squad Up
Post by samslophead
0 Replies, 62604 Views

TERA Skinned Xbox One X Giveaway!
Post by Variation-XBA
0 Replies, 54639 Views

Starfield Release expectations?
Post by DJ tx
4 Replies, 101244 Views

Issue with Xbox live on Xbox home
Post by rcmpayne
0 Replies, 72044 Views

Happy Birthday, Me.
Post by SnoochyBoochy
4 Replies, 87625 Views

Xbox Playdates Canada October, 2018 Play date info thread.
Post by Kiesey
2 Replies, 20543 Views

© 2000-2021 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics