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Studio claims film company walked away from license agreement

ProCloud sues Paramount for $10m

Swedish game studio ProCloud has sued Paramount for allegedly balking at a license agreement that would have given the developers exclusive rights to develop games for seven of the motion picture company’s films.

The digital entertainment division of Paramount was shut down shortly after an agreement was allegedly reached for which the studio paid $1 million, and ProCloud claims that as Paramount’s worldwide partnerships and licensing division has been unable or unwilling to honor the contract.

According to Courthouse News, the studio claims the initial deal required a license fee of $500,000 for rights to make games based on five Paramount films, but a long term agreement was never signed.

A second deal called for an additional half million in license fees, which switched the five films covered under the contract, and added two to the agreement.

The studio claims that the shuttering of Paramount’s electronic entertainment division leaves the production company unable to fufill its end of the bargain.

The $10 million claim of breach of contract and unjust enrichment will be heard at federal court in L.A.

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