The Fight Goes On

Small developers have a tough enough time in the games business without legal wrangles getting in the way. Studio e, a Lombard, Illinois-based developer in existence since 1992, has experienced more than its share of legal troubles.

Late last week, however, the game developer received news that a DuPage county circuit court has cleared the way for Studio e to proceed with its suit against two former employees and publisher TH*Q. The suit alleges that the two employees improperly used Studio e equipment to create a game that TH*Q planned to publish.

When Studio e filed the complaint last January, the defendants responded by filing counterclaims of defamation. On Friday, May 9, the court threw out those countersuits. This means that Studio e can continue its lawsuit against TH*Q, Scott Williamson, and Mike Cihak.

The suit involves two former Studio e employees, Williamson and Cihak; their company, Inland Productions; and publisher TH*Q.

According to the original suit filed by Studio e, Williamson and Cihak - while employed by Studio e - formed Inland Productions and then used Studio e equipment to create their own game. This occurred without Studio e's knowledge or approval. The suit alleges that in early '96 Cihak and Williamson formed their own relationship with TH*Q, which bought a 25 percent share in Inland. TH*Q then broke off talks with Studio e, with which it was considering working. The suit also alleges that Williamson and Cihak tried to lure away Studio e employees. The original suit also claims that in mid-'96 Cihak told a number of industry people that Studio e was shutting down.

The original suit alleges that as a result of these actions, publishers like Microsoft - then in discussions with Studio e - wiped their hands clean of the game developer. And a game that the two employees were working on, VMX Racing, was never finished and caused a rift between Studio e and that game's publisher, Playmates Interactive. VMX Racing remains unpublished.

"This decision keeps the focus correctly on what really happened," said Mark Kaminky, a spokesman for Studio e, adding that there had been a lot of interest in the case. "For any company trying to develop itself in this market, raises some concerns they should have."