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Friday, October 19, 2007

CDC Files Second Lawsuit Against Mgame In Korea

-CDC Games has apparently filed a second lawsuit in the courts of Korea against MGame, with which it's collaborating to publish Yulgang in China. It seems it's the same breach of contract issue that it's suing for in Hong Kong, as recently announced.

CDC alleges that Mgame has not been providing adequate technical support for Yulgang nor supported them in their efforts to combat pirate servers. CDC Games says it will "continue to aggressively pursue all available legal options to protect its interests and the interests of its game players."

CDC signed an agreement to make a strategic investment in Mgame in March of 2007, making it the company's largest external shareholder at the same time it extended CDC's license of Yulgang to 2010. It has continued to make royalty payments to Mgame, as it has consecutively done over the last 3 years. According to CDC, it has paid $15 million in royalties and license fees since 2005.

“CDC Games believes it has been a strong partner to Mgame for the last three years,” said Xiaowei Chen, president of CDC Games. “We have sought to live up to our side of the bargain as demonstrated through our long, consistent payment history to Mgame. It is regrettable that we need to take these actions because Mgame has failed to live up to their side of the bargain.”

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Posted by Leigh Alexander on October 19, 2007 12:33 PM |

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