The game industry really seems like they're trying to one-up Hollywood's accounting.
The game industry really seems like they're trying to one-up Hollywood's accounting.
This is a typical SLA disagreement between vendor and customer. This happens on a regular basis across many industries that utilize software product not grown in-house.
The only reason this particular legal wrangling over licensing is making news - involves a well known gaming company (Crytek), its graphics engine, and a long, awaited, popular game (Star Citizen).
If nothing else, this gives CIG another plausible excuse to delay Star Citizen yet again.
The game industry really seems like they're trying to one-up Hollywood's accounting.
This is a typical SLA disagreement between vendor and customer. This happens on a regular basis across many industries that utilize software product not grown in-house.
The only reason this particular legal wrangling over licensing is making news - involves a well known gaming company (Crytek), its graphics engine, and a long, awaited, popular game (Star Citizen).
If nothing else, this gives CIG another plausible excuse to delay Star Citizen yet again.
Why would this cause SC to be delayed again? They (CIG/RSI) have committed to use Amazon Lumberyard and the old Crytek code simply cannot be brought up to lumberyard specs without a significant re-inventing of code. This is why the switched over to lumberyard in the first place. Also during that period Crytek was going bankrupt and moving from their product was probably a good idea due to lack of support from the vendor.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
"the game currently entitled 'Space Citizen' [sic] and its related space fighter game 'Squadron 42.'"
The game industry really seems like they're trying to one-up Hollywood's accounting.
This is a typical SLA disagreement between vendor and customer. This happens on a regular basis across many industries that utilize software product not grown in-house.
The only reason this particular legal wrangling over licensing is making news - involves a well known gaming company (Crytek), its graphics engine, and a long, awaited, popular game (Star Citizen).
If nothing else, this gives CIG another plausible excuse to delay Star Citizen yet again.
Why would this cause SC to be delayed again? They (CIG/RSI) have committed to use Amazon Lumberyard and the old Crytek code simply cannot be brought up to lumberyard specs without a significant re-inventing of code. This is why the switched over to lumberyard in the first place. Also during that period Crytek was going bankrupt and moving from their product was probably a good idea due to lack of support from the vendor.
Let's see.. Star Citizen originally slated for 2015 release. Delay, delay, delay. Here it is 2018 and there still is no official release date.
If I had to guess, CIG looks for and finds any reason possible not to stick to a reasonable product release schedule.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
If you grant me exclusive rights to use your lot for a crafts fair, that does not mean that I have to use your lot for a crafts fair, that simply means that you cannot let anyone else use it for a crafts fair.
It's absurd to think that cryengine would grant exclusive rights to use cryengine as a whole, but not as absurd to think that it might be exclusive rights to say, creating a space conquering sim with it. Regardless based on that wording there's still zero reason to think that CIG has to use cryengine.
If Microsoft and the NFL sign a deal that the NFL will exclusively use Surface Tablets on the sidelines, does that mean that
A. Microsoft cannot sell surface tablets to anyone except the NFL
B. The NFL cannot use non-surface tablets on the sidelines.
The "exclusivity" portion was added to the contract because CIG was getting a fairly good deal in terms of liscensing costs and support, in exchange for promoting their use of Cryengine. It's fairly cut and dry.
I know, right? You'd think someone responsible for a legal document would do a good job."the game currently entitled 'Space Citizen' [sic] and its related space fighter game 'Squadron 42.'"
Jesus.
"the game currently entitled 'Space Citizen' [sic] and its related space fighter game 'Squadron 42.'"
Jesus.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
If you grant me exclusive rights to use your lot for a crafts fair, that does not mean that I have to use your lot for a crafts fair, that simply means that you cannot let anyone else use it for a crafts fair.
It's absurd to think that cryengine would grant exclusive rights to use cryengine as a whole, but not as absurd to think that it might be exclusive rights to say, creating a space conquering sim with it. Regardless based on that wording there's still zero reason to think that CIG has to use cryengine.
If Microsoft and the NFL sign a deal that the NFL will exclusively use Surface Tablets on the sidelines, does that mean that
A. Microsoft cannot sell surface tablets to anyone except the NFL
B. The NFL cannot use non-surface tablets on the sidelines.
The "exclusivity" portion was added to the contract because CIG was getting a fairly good deal in terms of liscensing costs and support, in exchange for promoting their use of Cryengine. It's fairly cut and dry.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
I think you misread CIG's position. All of section 2.1 is predicated on "Crytek grants to Licensee a world-wide, license only:". 2.1.2, which has the "exclusively" language, is about only CIG and its subcontractors doing the development work, meaning that they can't open source the development work against the engine (see the reference to 2.6) .
If the intent had really been to require CIG to use Crytek, it should have been in section 2.2 ("Restrictions on use"). It would have been easy to say "shall not license a competing engine or use Crytek via another licensee".
IANAL, but I've negotiated and signed more than a few licensing agreements, and I don't think I've ever seen one where the license rights to use something are considered to be a requirement to actually use it, let alone a prohibition on also using another solution.
And since CIG doesn't seem to be disputing their obligation to pay for the license... what's the remedy? Force them to include Crytek code and just never call it?
IANAL, but it seems to me that if you have are developing a game that has some kind of legal hassles involved (whether or not those legal hassles are going to be part of the final product), one would wait for the legal hassles to be resolved before releasing that game least one is called upon (howsoever unlikely it may be) to pull the game and fix it or to shut it down.The game industry really seems like they're trying to one-up Hollywood's accounting.
This is a typical SLA disagreement between vendor and customer. This happens on a regular basis across many industries that utilize software product not grown in-house.
The only reason this particular legal wrangling over licensing is making news - involves a well known gaming company (Crytek), its graphics engine, and a long, awaited, popular game (Star Citizen).
If nothing else, this gives CIG another plausible excuse to delay Star Citizen yet again.
Why would this cause SC to be delayed again? They (CIG/RSI) have committed to use Amazon Lumberyard and the old Crytek code simply cannot be brought up to lumberyard specs without a significant re-inventing of code. This is why the switched over to lumberyard in the first place. Also during that period Crytek was going bankrupt and moving from their product was probably a good idea due to lack of support from the vendor.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
If you grant me exclusive rights to use your lot for a crafts fair, that does not mean that I have to use your lot for a crafts fair, that simply means that you cannot let anyone else use it for a crafts fair.
It's absurd to think that cryengine would grant exclusive rights to use cryengine as a whole, but not as absurd to think that it might be exclusive rights to say, creating a space conquering sim with it. Regardless based on that wording there's still zero reason to think that CIG has to use cryengine.
If Microsoft and the NFL sign a deal that the NFL will exclusively use Surface Tablets on the sidelines, does that mean that
A. Microsoft cannot sell surface tablets to anyone except the NFL
B. The NFL cannot use non-surface tablets on the sidelines.
The "exclusivity" portion was added to the contract because CIG was getting a fairly good deal in terms of liscensing costs and support, in exchange for promoting their use of Cryengine. It's fairly cut and dry.
There's a difference between being granted exclusive rights to something, and signing a deal stating you will exclusively use something. Don't try to pretend they're the same thing.
I'm not pretending they are the same thing, the wording of the GLA might be ambiguous but the intent on Cryteks behalf is clear, and CIG's actions until this point reinforce that, as they are esentially now making the argument that their new engine choice, lumberyard, was improrperly licensed from Crytek (for 50 million dollars). And that doesn't even take into account all the other cryengine licenses issused over the last 5 years. The fact that they had no greivences with that issue are telling.
2 Grant of License
2.1 Grant: Subject to strict and continuous compliance with the restrictions in the Agreement and the timely payment of the first installment of the License and Buyout Fee pursuant to Section 5.1.1 hereof by Licensee, Crytek grants to Licensee a world-wide, license only:
...
2.1.2 to exclusively embed CryEngine in the Game and develop the Game which right shall be sub-licensable pursuant to Sec 2.6);
2.1.3 to exclusively manufacture, market, promote, sell, license, publish, and exploit the Game in any way which right shall be freely sub-licensable.
And what are the dates of the license?CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
I think you misread CIG's position. All of section 2.1 is predicated on "Crytek grants to Licensee a world-wide, license only:". 2.1.2, which has the "exclusively" language, is about only CIG and its subcontractors doing the development work, meaning that they can't open source the development work against the engine (see the reference to 2.6) .
If the intent had really been to require CIG to use Crytek, it should have been in section 2.2 ("Restrictions on use"). It would have been easy to say "shall not license a competing engine or use Crytek via another licensee".
IANAL, but I've negotiated and signed more than a few licensing agreements, and I don't think I've ever seen one where the license rights to use something are considered to be a requirement to actually use it, let alone a prohibition on also using another solution.
And since CIG doesn't seem to be disputing their obligation to pay for the license... what's the remedy? Force them to include Crytek code and just never call it?
There is 2.4 that says they can't use any competing product. A bit shortened quote:
"During the Term of the License (...), and for a period of 2 years thereafter, Licensee, its prinicapels, and Affilialtes shall not directly or indirectly engage in business of, (...) , selling or licencing (directly or indirectly) any game engine or middleware which compete with CryEngine."
And term of the license is defined in 8.1 as full commercial life of the game.
IANAL but to me that sounds like they are only allowed to use CryEngine.
The Term (length) of the license is described in Section 8.1 as the "Commercial Life of the Game"And what are the dates of the license?There is 2.4 that says they can't use any competing product. A bit shortened quote:
"During the Term of the License (...), and for a period of 2 years thereafter, Licensee, its prinicapels, and Affilialtes shall not directly or indirectly engage in business of, (...) , selling or licencing (directly or indirectly) any game engine or middleware which compete with CryEngine."
And term of the license is defined in 8.1 as full commercial life of the game.
IANAL but to me that sounds like they are only allowed to use CryEngine.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
I think you misread CIG's position. All of section 2.1 is predicated on "Crytek grants to Licensee a world-wide, license only:". 2.1.2, which has the "exclusively" language, is about only CIG and its subcontractors doing the development work, meaning that they can't open source the development work against the engine (see the reference to 2.6) .
If the intent had really been to require CIG to use Crytek, it should have been in section 2.2 ("Restrictions on use"). It would have been easy to say "shall not license a competing engine or use Crytek via another licensee".
IANAL, but I've negotiated and signed more than a few licensing agreements, and I don't think I've ever seen one where the license rights to use something are considered to be a requirement to actually use it, let alone a prohibition on also using another solution.
And since CIG doesn't seem to be disputing their obligation to pay for the license... what's the remedy? Force them to include Crytek code and just never call it?
There is 2.4 that says they can't use any competing product. A bit shortened quote:
"During the Term of the License (...), and for a period of 2 years thereafter, Licensee, its prinicapels, and Affilialtes shall not directly or indirectly engage in business of, (...) , selling or licencing (directly or indirectly) any game engine or middleware which compete with CryEngine."
And term of the license is defined in 8.1 as full commercial life of the game.
IANAL but to me that sounds like they are only allowed to use CryEngine.
Regarding CIG's description of the use of the word "exclusively," this is one where I think both CryTek's and CIG's arguments are wrong. Reading the GLA, CryTek's use of "exclusive" is clear as limiting the game engine license to "exclusively" Star Citizen, meaning CIG couldn't use it in other games. It does not mean CIG agreed to use only their engine in the game.
However, CIG's counterclaim bizarrely tries to argue that CryTek gave them an "exclusive license" to the engine, i.e. Crytek agreed not to license it out to anyone else, which is just wrong. So CIG is in the clear here, but not for the reason they claim.
CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
I think you misread CIG's position. All of section 2.1 is predicated on "Crytek grants to Licensee a world-wide, license only:". 2.1.2, which has the "exclusively" language, is about only CIG and its subcontractors doing the development work, meaning that they can't open source the development work against the engine (see the reference to 2.6) .
If the intent had really been to require CIG to use Crytek, it should have been in section 2.2 ("Restrictions on use"). It would have been easy to say "shall not license a competing engine or use Crytek via another licensee".
IANAL, but I've negotiated and signed more than a few licensing agreements, and I don't think I've ever seen one where the license rights to use something are considered to be a requirement to actually use it, let alone a prohibition on also using another solution.
And since CIG doesn't seem to be disputing their obligation to pay for the license... what's the remedy? Force them to include Crytek code and just never call it?
There is 2.4 that says they can't use any competing product. A bit shortened quote:
"During the Term of the License (...), and for a period of 2 years thereafter, Licensee, its prinicapels, and Affilialtes shall not directly or indirectly engage in business of, (...) , selling or licencing (directly or indirectly) any game engine or middleware which compete with CryEngine."
And term of the license is defined in 8.1 as full commercial life of the game.
IANAL but to me that sounds like they are only allowed to use CryEngine.
I don't understand that reasoning at all. In what way, via Crytek granting a license to the engine to CIG, would that give Crytek any rights to Star Citizen in a way that would need to be explicitly excluded?Regarding CIG's description of the use of the word "exclusively," this is one where I think both CryTek's and CIG's arguments are wrong. Reading the GLA, CryTek's use of "exclusive" is clear as limiting the game engine license to "exclusively" Star Citizen, meaning CIG couldn't use it in other games. It does not mean CIG agreed to use only their engine in the game.
However, CIG's counterclaim bizarrely tries to argue that CryTek gave them an "exclusive license" to the engine, i.e. Crytek agreed not to license it out to anyone else, which is just wrong. So CIG is in the clear here, but not for the reason they claim.
The counterclaim is "that CIG’s right to use the Engine in the Game is exclusive to CIG and
Crytek may not give that right to anyone else."
Note the bolded part. CryTek may not give anyone else the license to use CryEngine in Star Citizen.
I'm not pretending they are the same thing, the wording of the GLA might be ambiguous but the intent on Cryteks behalf is clear, and CIG's actions until this point reinforce that, as they are esentially now making the argument that their new engine choice, lumberyard, was improrperly licensed from Crytek (for 50 million dollars). And that doesn't even take into account all the other cryengine licenses issused over the last 5 years. The fact that they had no greivences with that issue are telling.
Gig has a lost case. 2.1.1 is clear. No other game engine can be embedded in the game, they have to exclusively embed cryengine.CIG also argues that the "exclusive rights" to CryEngine granted in the license agreement do not extend to a requirement to use that engine. "The plain language of the GLA where the grant of rights to CIG appears, plus the well-established concept of an exclusive license, instead establish that the word 'exclusively' simply means that CIG’s right to use the Engine in the Game is exclusive to CIG and Crytek may not give that right to anyone else," the company writes.
It's clearly CIG being "selective" and "misleading" here, by claiming that "exclusive" use of the engine meant that Crytek would never license it out to any other company, which is an absurd proposition considering CIG even went on to use Amazons licensed version of Cryengine.
I think you misread CIG's position. All of section 2.1 is predicated on "Crytek grants to Licensee a world-wide, license only:". 2.1.2, which has the "exclusively" language, is about only CIG and its subcontractors doing the development work, meaning that they can't open source the development work against the engine (see the reference to 2.6) .
If the intent had really been to require CIG to use Crytek, it should have been in section 2.2 ("Restrictions on use"). It would have been easy to say "shall not license a competing engine or use Crytek via another licensee".
IANAL, but I've negotiated and signed more than a few licensing agreements, and I don't think I've ever seen one where the license rights to use something are considered to be a requirement to actually use it, let alone a prohibition on also using another solution.
And since CIG doesn't seem to be disputing their obligation to pay for the license... what's the remedy? Force them to include Crytek code and just never call it?
I'm not a native English speaker but it is more than obvious that crytek will win 100%.