Viacom got 60-70 videos unjustly removed from Youtube from it's take-down notices just before officially suing Youtube for copyright infringement as if Youtube themselves were uploading the clips. Not only has it been proven that Viacom uploaded their own copyrighted material under false user names to pass off as the average Joe(thus making themselves guilty of the practice they're suing over?), Viacom also steals videos from Youtube and other places wholly created by the average Joe and puts them up on Spike.com and other video hosting websites without asking for permission... the very thing they're angry about, only Viacom themselves are doing it while Youtube is just hosting uploads from other people. It's hilarious stuff. Needless to say Viacom should lose every suit every time, even if they sued me for assault after I kicked the CEO square in the balls.
Rock Band developer's founders suing Viacom
Alex Rigopulos and Eran Egozy among Harmonix ex-shareholders who claim multimedia giant manipulated costs to prevent bonus payouts.
This year began with media giant Viacom revealing it was seeking a "substantial" refund of the $150 million in bonuses it paid to the shareholders of Harmonix, developer of the Rock Band games. Now, 2010 is ending with Harmonix filing suit against its soon-to-be-former owner, claiming it manipulated costs to evade payments due to the studio's shareholders under a profit earn-out agreement.
According to a copy of the complaint obtained by industry site Gamasutra, a group of the initial shareholders in Harmonix, including cofounders Alex Rigopulos and Eran Egozy, accuse Viacom of manipulating the earn-out payments by "diverting opportunities from Harmonix for its own benefit."
Among those opportunities was a chance to renegotiate fees with Electronic Arts, which distributes the Rock Band games. Instead of reducing the fees--and thereby increasing profits, which would lead to larger earn-out payments for Harmonix--Viacom allegedly arranged for EA to buy millions of dollars' worth of ads on Viacom's various networks in 2008. The suit contends that the EA/Viacom deal would then reduce EA's distribution fees in 2009, after Harmonix's earn-out period had expired.
According to the suit, "Although a reduced 2008 EA distribution fee would have increased Harmonix's gross profit and operating profits in 2008, Viacom realized that every $1.00 of distribution fees that Harmonix saved during 2008 would require Viacom to pay an additional $3.50 of earn-outs to the [ex-shareholders]."
Saying that Viacom's actions have "damaged" the former shareholders, Harmonix is asking for the equivalent of the earn-out payments it would've received had the EA fees been reduced in 2008. Also, it is seeking the value of EA's advertising commitments, as well as $13 million currently held in an escrow account.
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- Publisher(s): MTV Games
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