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Red 5 and Webzen Resolve Firefall Legal Dispute

Posted Fri, Sep 30, 2011 by Martuk

Earlier this year Firefall developer Red 5 filed for arbitration in California against Firefall’s Asian publisher Webzen. Red 5 CEO Mark Kern stated in a post to the Firefall website that, “we do not feel the new management of Webzen has honored their obligations towards Firefall, particularly in Asia.” This escalated to Webzen retaliating with a lawsuit against Red 5’s Korean office alleging numerous breaches of its publishing contract.

But it appears that the two have now come to an agreement and settled their dispute. A recent press release details the terms of the settlement reached between Red 5 and Webzen. Under the agreement, Red 5 will retain all global publishing rights to Firefall and Webzen will no longer be involved in the marketing or publishing of the game. Webzen isn’t walking away empty handed though. In fact, it looks like they may have made out quite well. Under the settlement agreement, Red 5 will compensate Webzen for development fees paid to the developer for Firefall and they’ll even get a cut of the future revenue generated from the game for a given time.

Any other legal disputes between the two companies were also dropped as part of the agreement.


RED 5 STUDIOS AND WEBZEN HAVE AGREED TO END THE DISPUTE

[Provided by Red 5 Korea] – September 29th, 2011 – Red 5 Studios, Inc. (“Red 5”) announced that it has entered into a settlement agreement with Webzen, Inc. to resolve all the legal disputes between them, including withdrawal of all pending legal claims against the other.

Under this agreement, Webzen will receive compensation for the prior development fees paid to Red 5 and also will share in future revenue generated from Red 5’s game entitled Firefall for a certain period of time. Red 5 and its affiliated company received the global publishing rights under the settlement agreement. Webzen will no longer be involved in marketing and publishing Firefall in any territory as a result of this agreement.

Mark Kern, CEO of Red 5 Studios said, "Given the resolution of all disputes and conflicts between our two companies I would like to ask for our fans, especially Chinese and Korean gamers,’ continuous encouragement and support in Firefall and Red 5."

From now on, please contact Red 5 Studios and Red 5 Korea for more details regarding Firefall.

About Red 5 Studios
Red 5 Studios, Inc., an online game developer located in California, is founded by Mark Kern, former team lead for World of Warcraft. Red 5 is dedicated to bringing together millions of gamers across the world by creating immersive worlds, intriguing stories and compelling characters. Red 5 believes that online games and persistent worlds are the future of video games. Visit www.red5studios.co.kr for more information.


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