Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Entertainment Law & FinanceKickerFeaturesTopicsCommercial LawLitigationTechnology Media and TelecomSectionsNewsLJN Newsletters

Earn-Out Payments In <i>Rock Band</i> Video Game at Issue in Delaware Case

By Jeff Mordock
August 02, 2013

Attorneys for Viacom International Inc. told the Delaware Supreme Court in oral arguments in July that their client did not breach the implied covenant of good faith and fair dealing when it failed to renegotiate an agreement with Electronic Arts Inc. (EA) to distribute the video game Rock Band , thereby reducing the earn-out payments to shareholders of the game's developer, Harmonix Music Systems Inc., which merged with the Viacom entertainment conglomerate in 2006. Viacom's attorneys presented their case to the high court after Harmonix's shareholders appealed a Delaware Court of Chancery decision that dismissed their claims that Viacom purposely sought to reduce Harmonix's earn-out payments.

As the state supreme court mulls the parties' arguments in Winshall v. Viacom, in a separate, but related development in July it affirmed the chancery court's decision to uphold an arbitrator's $298.8 million award to shareholders who claimed they were shortchanged out of the earn-out payments in 2008. Viacom International Inc. v. Winshall, 513. Viacom contended the award should only be $191 million because it should be permitted to write down the cost of unsold games.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.