Paramount Pictures Sued For $10 Million By A Swedish Video Game Company After Exec's Ouster

Photo: Screenshot / Rango Movie

Paramount Pictures has been hit with a $10 million lawsuit by Swedish video game company ProCloud Media over the rights to “War of the Worlds” and other movies.Filed in the federal court of Los Angeles, this lawsuit follows the firing of Paramount’s Digital Entertainment director.

According to Courthouse News, Paramount Pictures allegedly breached a contract and violated their agreed upon terms to co-finance and co-produce video games based exclusively on Paramount’s past movies.

The Swedish company is now stating that Paramount Pictures did not “fully perform” as co-producer.

As agreed upon in their original contract, ProCloud forked out $500,00 for a licensing fee for the exclusive rights to five Paramount films (including “Rango” and “War of the Worlds”). In a later amendment, they were given the rights to change the titles of the first five movies and given rights to two more movies, the suit said.

In order to do so however, they had to pay an additional $500,000.

As co-producer and co-financier, Paramount would be responsible for paying 50 per cent of all development costs of each project (or budget–whichever was cheaper), which was estimated at an approximate $8.75 million. In addition, ProCloud would be listed as the publisher and would receive royalties from the games.

Four weeks after their original contract amendment, they learned that the head of Paramount Digital Entertainment was fired and that the department was not part of the Paramount Worldwide Marketing Partnerships and Licensing division.

“Since that time, it has been virtually impossible to communicate with anyone at Paramount with any knowledge of its obligations under the agreement or with substantial knowledge of the ongoing co-produced game projects, which are (and always have been) of a time-sensitive nature. The abrupt structural change within Paramount left it incapable of performing its obligations under the agreement,” “The Hollywood Reporter” states.

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