More Details in MGE-SCI Dispute – MGE Asserts Contractual Ownership of Source Codes

July 14, 2006 at 2:57 pm - by Dale Dietrich

Categories: Non-Compete Cases • Publisher/Developer Cases

In a recent statement MGE alleges that its signed development agreement with SCI clearly stipulates that it retains ownership of the source codes. MGE also alleges that SCi is in breach of a non solicit clause in their agreement by obtaining, presumably, confidential information from former MGE employees.

Source: Gamasutra

Dale’s Comment: This contract seems odd. SCI claims it has a contractual right to take over development if dissatisfied with MGE’s development work. At the same time MGE states the contract gives it ownership rights in the source codes. These two statements are at odds with each other. Either the contract was very poorly drafted or one of the two parties fundamentally misunderstands it. If anyone has access to the disputed contract (undoubtedly to be an exhibit at any trial), or the disputed provisions, I would appreciate it if you would provide me with a copy so that I can post here.