An appeals court says there are triable issues as to whether Beyonce breached a licensing deal by walking away from a dance video game. In other words…sh*t just got real.
Beyonce is performing at the Super Bowl halftime show Feb. 3, and there’s also a good chance she’ll appear in a New York court soon after for a potential jury trial.
The singer is facing a lawsuit in New York from a company called Gate Five that alleges that on a Christmas Eve “whim” in 2010, she abandoned development of a motion-sensing dance video game that was going to be called Starpower: Beyoncé. Gate Five is asking for huge damages — “the hundreds of millions of dollars in profits that Gate Five could have realized if she had honored the Agreement,” according to the lawsuit.
Last April, a judge denied Beyonce’s motion for summary judgment, which was premised on the belief that she had a right to cancel the video game contract because Gate Five hadn’t obtained a necessary $5 million financing commitment.
On Thursday, after Beyonce asked for a second opinion, a New York appellate court affirmed the lower court’s order.
According to Gate Five, it had developed a technology that was better than the motion-driven video games on the market, that would track a far wider range of body movements than Nintendo’s Wii, and the game technology was presented to representatives for top-selling artists including Lady Gaga and the Black Eyed Peas, who purportedly expressed interest.
Ultimately, the company signed a deal with Beyonce, but the contract had a termination clause requiring certain financing by a certain date or else the singer could back out.
Gate Five alleges that it spent $6.7 million on the game and had a financier lined up to provide $19.2 million in financing when Beyonce exercised her termination rights.
Before she did, Gate Five says Beyonce demanded a new compensation package. During the course of litigation, the video game company began investigating whether Beyonce terminated so as to sign a deal with another video game company such as Ubisoft or Electronic Arts.
I see said the blind man. And now…
This is EbenGregory.com…telling you If the facts don’t fit the theory, change the facts.