[HN Gopher] Publisher Nacon Cracked and Pirated Our Game: The Si...
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       Publisher Nacon Cracked and Pirated Our Game: The Sinking City
        
       Author : jccalhoun
       Score  : 393 points
       Date   : 2021-03-02 03:17 UTC (19 hours ago)
        
 (HTM) web link (frogwares.com)
 (TXT) w3m dump (frogwares.com)
        
       | niea_11 wrote:
       | Press release from Nacon about the dispute (5 Jan 2021) :
       | 
       | https://corporate.nacongaming.com/en/press/the-sinking-city-...
       | 
       | I'm not sure if the court decision gives them the right to do
       | what they did (talking about Nacon).
        
         | cestith wrote:
         | IANAL and I'm certainly not intimately familiar with French
         | law. However, I think since they're saying Frogwares is in
         | breach and has been ordered by the court to continue the
         | contract that Nacon's course of action here should be to tell
         | the court Frogwares isn't fulfilling the terms of the contract.
         | I don't believe anywhere in the economically developed
         | countries of the world is it okay to decide on your own
         | vigilante solution and pursue it in violation of other laws.
        
         | random5634 wrote:
         | PDF here
         | 
         | https://corporate.nacongaming.com/wp-content/uploads/2021/01...
         | 
         | This is not someone in China cracking and rebranding things
        
           | niea_11 wrote:
           | Still, the court ordered frogwares to give the binaries to
           | Nacon. They didn't give permission to Nacon to download and
           | patch a binary, from another distributor, which is probably
           | provided under a EULA that forbids what they did.
        
             | thatguy0900 wrote:
             | And according to this post, they didn't even get the right
             | binarys. They got one for a deluxe version of the game that
             | was never contracted to them to begin with.
        
       | juskrey wrote:
       | I was working near some game publishers many many years ago, and
       | the case when they would crack the game in order to
       | publish/republish/rewrap installer, localize to some local market
       | or release some critical patch, when the original team was not
       | responsive, not experienced in certain tech issues, had no
       | resources allocated, was drown in bureaucracy, or even was not
       | existing anymore, was not so uncommon.
       | 
       | The case when this is breaching original contracts is the well
       | the separate issue. Often times the publisher and developer have
       | different views of the world, - relationships in this industry
       | have always been tense.
        
         | vbezhenar wrote:
         | Why would anyone need publishers I just don't understand. I
         | paid money to Factorio developers. I've got zipped game. Best
         | UX in the world. Compare that to the Steam or Origin pain when
         | I need to spent hours trying to install all that stuff and
         | having my computer full of spyware afterwards, yuck!
        
           | legitster wrote:
           | In this case, the publishers gave the money to develop the
           | game.
        
           | Causality1 wrote:
           | Because they give developers money to make a game before they
           | have any sales.
        
           | Svip wrote:
           | Not everyone can afford to manage a server, nor have the
           | necessary skills to do so, and thus Steam becomes a
           | convenient tool to distribute one's game through. Factorio
           | too is sold on Steam, but is also available through their own
           | site.
           | 
           | I've heard that one of the appealing features of Steam for
           | developers is how easy it is to upload new versions and
           | generally distribute your game.
        
             | gogopuppygogo wrote:
             | The network effect of having established a marketplace with
             | millions of consumers who pay for games is non-trivial.
             | Steam is a trusted name in gaming for a reason.
        
               | cestith wrote:
               | Steam also promotes games, has reviews of them, and
               | suggests games directly to players. The first time I
               | personally heard of many of the games I play has been
               | through Steam, Humble, GOG, Epic's game launcher/store
               | app or other launchers and game selling sites.
               | 
               | I also can reinstall hundreds of games from Steam without
               | remembering who developed it, who paid for the
               | development, or who published it to Steam. I just tell
               | the Steam client to install it based on the name of the
               | game. That's a great usability and convenience feature.
        
           | flohofwoe wrote:
           | Traditionally, game publishers were mostly a bank. Their main
           | job was not marketing and publishing (although that's
           | important too), but financing a game's development until it
           | was ready for release, and sometimes to help out with
           | resources and services (like localization, quality assurance,
           | etc).
           | 
           | That's why Kickstarter and Steam Early Access are such a big
           | deal, they allowed new financing models and independent game-
           | dev studios to emanzipate themselves from publishers.
        
           | driverdan wrote:
           | In the same way that authors who write books "need"
           | publishers. You can self publish but that can make it much
           | harder for an unknown person to succeed.
           | 
           | In some cases a publisher makes sense, in some it does not.
        
           | dunefox wrote:
           | > Compare that to the Steam or Origin pain when I need to
           | spent hours trying to install all that stuff and having my
           | computer full of spyware afterwards, yuck!
           | 
           | Yeah, double clicking on a game and having it automatically
           | downloaded and executed... hours of work and hundreds of
           | viruses! You have obviously never used steam and origin.
        
             | wackget wrote:
             | More like:
             | 
             | 1. Download Steam client
             | 
             | 2. Click to install Steam client
             | 
             | 3. Steam client starts to download even more crap itself
             | 
             | 4. Steam client actually starts installing
             | 
             | 5. Sign In/Register
             | 
             | Then when you want to install or even play a game...
             | 
             | 1. Launch Steam
             | 
             | 2. [UPDATING STEAM, PLEASE WAIT]... Jesus Christ...
             | 
             | 3. Sign In/Register
             | 
             | 4. Click to install game
             | 
             | 5. Launch game
             | 
             | 6. [CHECKING FOR UPDATES, PLEASE WAIT]...
             | 
             | 7. Finally play game
             | 
             | And if your internet connection goes offline? Enjoy, you're
             | fucked.
             | 
             | Yeah, fuck Steam and all similar bloatware.
        
               | jhauris wrote:
               | As someone who sometimes has spotty internet service,
               | steam games work just fine when steam is in offline mode.
               | I share the frustration of needing to update a game
               | before playing it, but that actually can be prevented on
               | a per-game basis, and obviously doesn't happen if running
               | in offline mode.
        
               | dunefox wrote:
               | So... your problem is what exactly? Downloading files
               | takes time? Steam has to be installed? Automatic updates?
        
               | yareth wrote:
               | Steam has offline mode which does not require internet
               | connection. You still may not be able to play the game if
               | the game itself requires an internet connection, but that
               | has nothing to do with Steam.
        
           | lmkg wrote:
           | Weather Factory, developer of Cultist Simulator, has been
           | open about the business side of their development. This
           | includes a few blog posts about their decision to go with a
           | publisher (Humble Bundle) instead of going alone.
           | 
           | tl;dr Up-front advance was important for cash flow and risk
           | management. At the end of the day they ended up with less
           | profit but think it was the right decision anyways.
           | 
           | http://weatherfactory.biz/state-of-the-factory-year-1/
           | 
           | Note also that there is a difference between a publisher
           | (Humble) and a distributor (Steam), which is covered in that
           | post.
        
           | killtimeatwork wrote:
           | Direct sales involve handling credit cards (i.e. chargebacks,
           | scams) as well as getting in bed with potentially every tax
           | authority in the world. For example, for every game sold in
           | European country, you need to collect VAT and transfer it to
           | that country's tax authority (currently, there's something
           | like 28 of them?). This also includes filling out forms...
           | Steam takes care of all that for you.
           | 
           | However! Publishers don't do that. Publishers' value
           | proposition is funding the development and doing the
           | marketing for you, so that you can concentrate on making the
           | game. If the game tanks, they eat up the losses (i.e. it's an
           | investment, not a loan). The retail is a separate issue and,
           | while it's handled by the publishers, is still likely to be
           | handled via Steam or other platforms.
        
             | GeneralTspoon wrote:
             | You could also just use any merchant of record service to
             | handle all that book keeping for you.
             | 
             | They'll charge a hefty fee compared to doing it yourself,
             | but still far below the Steam cut.
             | 
             | Although publishing on steam obviously has other
             | advantages.
        
             | Xavdidtheshadow wrote:
             | > Direct sales involve handling credit cards (i.e.
             | chargebacks, scams)
             | 
             | This is actually something that the Factorio developers
             | (mentioned in the comment you're replying to) have had a
             | lot of issues with. See "The Grey Market"
             | (https://www.factorio.com/blog/post/fff-171) or this
             | article: https://www.pcgamer.com/factorio-devs-take-g2a-up-
             | on-its-cha...
        
             | antihero wrote:
             | > For example, for every game sold in European country, you
             | need to collect VAT and transfer it to that country's tax
             | authority
             | 
             | What if you simply do not do this? Are they going to arrest
             | you? (Presuming you are VAT registered outside of the EU or
             | whatever)
        
               | [deleted]
        
             | fvv wrote:
             | I'm in eu and don't have to pay vat for extra eu or even
             | extra country but in eu sales.. it depends on bilateral
             | agreement between countries i suppose..
        
               | badsectoracula wrote:
               | You do not pay additional VAT, you just pay the VAT of
               | the country your customer is resident of instead of your
               | own country. To do that you need to be registered in all
               | EU countries and file VAT for each one of them.
               | 
               | There is an alternative for online services, etc called
               | VAT MOSS[0], mainly meant for smaller sellers which allow
               | you to keep paying VAT in your own country without
               | registering in all of them but you still need to apply
               | different VAT rates depending on your customer's country.
               | Also you need to keep records of these transactions.
               | 
               | Steam (and other services... well actually even Steam
               | uses an external service for this) handle that stuff for
               | you and you only deal with Steam.
               | 
               | [0]
               | https://europa.eu/youreurope/business/taxation/vat/vat-
               | digit...
        
               | e98cuenc wrote:
               | you definitely have to add the relevant VAT, depending on
               | your customer country, declare it in MOSS where it will
               | be sent to every individual country.
               | 
               | You also have to check if your customer is any other of
               | the countries / states that collect VAT (India,
               | Indonesia, many US states and oh so many random
               | countries) and make a proper declaration in each country.
               | It's almost impossible to do it right if you don't go
               | with a partner to handle it all.
        
             | deelowe wrote:
             | Wouldn't they just use a 3rd party payment processor these
             | days (e.g. stripe or similar)? I can't imagine taxes,
             | chargebacks and other things being such a huge issue now
             | for a small independent who could likely leverage one of
             | the many available payment platforms.
             | 
             | Marketing seems to be the biggest draw for using a
             | publisher these days. That and getting easy access to
             | partner management with sony and microsoft. My
             | understanding is that some publishers are even quite good
             | at social media now, helping indies get exposure on twitch
             | and youtube.
        
           | eznzt wrote:
           | They are producers. Developing a game may take years and you
           | need to pay salaries.
        
           | sabellito wrote:
           | Hours trying to install? What do you mean?
           | 
           | I do think that the steam's fee of 30% feels strange, but all
           | the infrastructure they provide is pretty sweet. How do you
           | update the zip file you downloaded? Do you trust every
           | developer to keep their download servers running forever so
           | you can always download it later?
        
             | kranner wrote:
             | Same here, Steam is not painful at all to install and
             | manage. And I don't get how Steam is spyware, other than
             | tracking when and for how long I run which Steam game, and
             | what my hardware configuration is.
        
               | zajio1am wrote:
               | > other than tracking when and for how long I run which
               | Steam game
               | 
               | Well, this sounds like spyware (unless it is opt-in).
        
             | throwaway3699 wrote:
             | I plan to publish my game on Steam soon. The 30% seems
             | steep until you realise they're handling distribution,
             | payment processing, forums and marketing if the initial
             | traction is good. There are many great quality of life
             | features in Steamworks that enhance my game greatly, and I
             | do not need any server infrastructure. That being said, I
             | would not enjoy having to pay a publisher as well.
        
             | tomnipotent wrote:
             | > fee of 30% feels strange
             | 
             | This is comparable to what every developer on every console
             | has paid for over three decades in publishing, and still
             | leagues better than what they were making from boxed retail
             | sales.
        
           | stonemetal12 wrote:
           | In general the publisher pays for development. For big games
           | from known studios, you get a several million dollar advance
           | that pays for development of the game. The game's royalties
           | payback the advance and hopefully you earn something.
           | 
           | That is why EA owns so many game studios one big flop and
           | suddenly you owe EA a couple of million.
        
             | SeanBoocock wrote:
             | No one owes the publisher anything for a commercial failure
             | in standard publisher contract where they are funding
             | development. The publisher is taking the financial risk;
             | that's the point. The developer will make additional money
             | beyond the advance based on terms of the publishing
             | contract (common terms would be developer starts getting
             | paid royalties when publisher has 1XX% recouped development
             | + marketing spend).
        
               | stonemetal12 wrote:
               | TIL, I always thought advances had to be paid back on
               | underperformance.
        
               | setr wrote:
               | In that case, would there be any purpose going to a
               | publisher rather than a bank directly? You'd be paying
               | infinite royalty on success in exchange for.. marketing &
               | distribution?
        
           | terafo wrote:
           | You may need publisher for one of the following:
           | 
           | Marketing
           | 
           | Localization
           | 
           | Covering development costs
           | 
           | Physical distribution
           | 
           | It is definitely possible to do marketing and localization
           | alone as a company, but it will divert studio's focus from
           | game development, which could do more harm than good since
           | game development is insanely hard. Physical distribution is
           | almost impossible to do properly for a small company. Of
           | course there are game investors that invest into specific
           | games and it could be better fit than publishers, but you can
           | do both.
           | 
           |  _need to spent hours trying to install all that stuff_
           | 
           | That is pretty much not a case.
        
       | prvc wrote:
       | Hard to read because the background section does not specify how
       | the relationship between the companies got started, and what was
       | in place before the falling-out occurred.
        
         | lvturner wrote:
         | https://frogwares.com/the-sinking-city-is-being-delisted-her...
        
       | einpoklum wrote:
       | Is there an official response by Nacon anywhere?
       | 
       | Nacon is the company which funded the production of the game. So
       | it's not as though some band of pirates attacked a game
       | development studio. I'm betting they have contractual
       | disagreements regarding how to distribution is supposed to occur,
       | who was supposed to make money off of what etc. - for which
       | reason it seems prudent to listen to both sides.
        
         | jiofih wrote:
         | It seems that Frogware thought they had a licensing agreement,
         | while Nacon thought they were buying the game IP. I guess the
         | only way to know is if they publish the contract itself online.
        
       | ryukafalz wrote:
       | Article aside, a pet peeve of mine... I feel like it's often
       | gaming sites like this one that have the most obtuse cookie
       | banners.
       | 
       | > This website uses cookies to improve your experience. We'll
       | assume you're ok with this, but you can opt-out if you wish.
       | 
       | First off, assuming consent and saying it's "to improve your
       | experience." Maybe they're not doing any targeting... nope, wait,
       | they're loading tracking pixels. And their privacy policy says
       | they use cookies to "...help customize our marketing offerings."
       | 
       | Okay, now how about opting out? Click "Read More" which takes you
       | to... their privacy policy. Some sites at least bury information
       | about how to disable browser cookies entirely in their privacy
       | policy. Here even that is nowhere to be found; no mention of how
       | you could prevent their cookies from being set in your browser at
       | all. (Setting aside the fact that disabling cookies globally in
       | your browser is so obviously _not_ a sane way to avoid tracking
       | on a single site, so even that would be woefully insufficient.)
       | 
       | I can only assume folks in the EU are seeing something that
       | _actually_ asks for consent, because this would be so far from
       | compliance over there it 's not even funny. Hoping the US gets
       | real online privacy laws soon.
       | 
       | > You can opt-out if you wish.
       | 
       | No, practically speaking, you cannot.
        
         | trissylegs wrote:
         | Opened an articel on Yahoo news today. That one was a doozy.
        
         | GekkePrutser wrote:
         | Even here in the EU there's many mainstream sites that just
         | have a cookiewall saying "by proceeding you agree to our use of
         | cookies".
         | 
         | This is totally not ok. There's should always be a way to opt
         | out, it's not allowed to just block the site in case people
         | don't want to agree. This has been reaffirmed in court several
         | times. But nothing seems to be done to enforce this.
        
         | gridspy wrote:
         | You need to install DDG privacy essentials, uMatrix and uBlock
         | Origin. Then you won't even see those banners, since they no
         | longer load (along with any of the related tracking)
        
           | ryukafalz wrote:
           | I would rather see the banners. They're a good indication of
           | how much a company is likely to respect my privacy: no banner
           | is best (because it means they're not tracking), a banner
           | with an easy opt-in and a way to dismiss it is okay, and a
           | banner that doesn't allow an opt-out I'll just leave active
           | forever. It'll annoy me anytime I visit the site, and that's
           | the point; I'll avoid sites that do this when I can.
           | 
           | One example: PayPal has a huge banner (often blocking the
           | "pay now" button) asking for permission to use my data for
           | targeted ads, and there's no way to dismiss it other than
           | agreeing to it. So I leave it there forever, and every time I
           | use PayPal I have a little bit more of a negative impression
           | of it.
           | 
           | It's also good to know about them when I'm sharing links with
           | friends - I'll be very hesitant to share one with someone who
           | I know is using a mobile browser, because they definitely
           | won't have the tools to avoid tracking like this.
        
         | banana_giraffe wrote:
         | > I can only assume folks in the EU are seeing something that
         | actually asks for consent
         | 
         | Nope, same message.
        
         | FeepingCreature wrote:
         | Yeah, this is super noncompliant. See https://gdpr.eu/cookies/
         | 
         | The ability to opt out does not suffice to satisfy the GDPR,
         | even if I _could_ find how to do it.
        
         | rendall wrote:
         | Over time I got a feel for sites that do this, and as a
         | practical matter I open those in private/incognito, then just
         | click through. Commercial blogs, how-to sites, news,
         | especiallyfrom the US: almost never compliant.
         | 
         | I do judge. It makes me a bit less receptive to Frogwares'
         | message, that they do this on their company blog
        
       | loloquwowndueo wrote:
       | Want me to read and sympathize with your sad story? Get rid of
       | the newsletter nag that smacks me in the face the moment I open
       | your page.
        
         | einpoklum wrote:
         | TBH this didn't happen to me. Could it be country-specific?
        
           | pc86 wrote:
           | There is an element of randomness. Presumably it's to A/B
           | test what is most effective to getting folks to sign up.
        
           | davnn wrote:
           | Could be adblocked as well.
        
             | ohashi wrote:
             | running ublock origin and i got it
        
               | paconbork wrote:
               | the "Fanboy's Annoyance" filter (not on by default) seems
               | to get rid of it
        
       | rasz wrote:
       | >The French Justice refused Nacon's demands twice, first in July
       | 2020 and then in October 2020 during an appeal.
       | 
       | while https://news.ycombinator.com/item?id=26314325 "Order
       | Frogwares Ireland to deliver the two masters of the game 'The
       | Sinking city' on PC DRM Free and Steam format under penalty of
       | 50,000 euros per day of delay from the 5th day following
       | notification by e-mail of the decision to intervene,"
       | 
       | someone is lying to me here
        
         | niea_11 wrote:
         | I made a comment about this here with the relevent part of the
         | decision in french:
         | https://news.ycombinator.com/item?id=26314681
         | 
         | Edit:
         | 
         | The relevant part in french:
         | 
         | Sur la livraison des formats manquants :
         | 
         | -- ordonner a Frogwares Ireland de lui livrer les deux masters
         | du jeu 'The Sinking city' sur _format PC DRM Free et Steam_
         | sous astreinte de 50.000 euros par jour de retard a compter du
         | 5 eme jour suivant la notification par e-mail de la decision a
         | intervenir
        
         | jiofih wrote:
         | the linked comment has been deleted.
        
         | megiddo wrote:
         | I think you're right. One of the first comments is the video he
         | says is "Nacon is licensed to release it on Steam."
         | 
         | OK. Then why is your licensee going to such great lengths to
         | publish to a platform you contractually agreed to support?
         | 
         | Something smells here.
        
           | wittyreference wrote:
           | Because the publisher didn't pay them agreed-upon sums, and
           | they're withholding the game awaiting said payment.
           | 
           | I don't know which parts are true or false, but that's right
           | in the post, and makes complete sense.
        
         | [deleted]
        
         | brmgb wrote:
         | Both are.
         | 
         | The 50,000 euros per day of delay is what Nacon was asking for
         | when they lost in July 2020. Then, Frogwares lost the October
         | 2020 appeal. The French appeal court decided that the contract
         | dismissal was actually unlawful. Therefore the contract stands
         | and Nacon has the right to distribute the game. However,
         | mandating the delivery of the two masters falls out of the
         | court jurisdiction. This will be judged separatly during the
         | year and the penalities don't apply until then.
        
           | YeGoblynQueenne wrote:
           | It seems there is some kind of Force Majeure clause in French
           | law or the contract between Nacon and Frogware that prevents
           | termination of the contract during Covid-19:
           | 
           |  _In our email exchange, BBI /Nacon essentially wrote that
           | the contract cannot be terminated because of the emergency
           | laws in France, aimed to protect businesses during the
           | COVID-19 pandemic, and at the same time BBI/Nacon refused to
           | fulfill their obligations toward us (payment, documented
           | reports, etc...). _
           | 
           | That should cover the original decision of the court. The
           | following seems to hint on the reasoning for the appeal:
           | 
           |  _- The "Emergency Laws explanation" actually triggers the
           | Force Majeure article of our own contract, entitling us to
           | terminate the agreement in case the parties could not
           | minimize the effects of an Event of Force Majeure on this
           | agreement for a period of 60 days._
           | 
           | Source:
           | 
           | https://frogwares.com/the-sinking-city-is-being-delisted-
           | her...
        
             | josefx wrote:
             | I am not an expert with laws, but weren't the COVID
             | relevant emergency laws created explicitly to prevent
             | contract termination due to non payment? Claiming that your
             | contract overrules laws specifically written to prevent
             | these clauses from taking effect seems a bit optimistic.
        
             | brmgb wrote:
             | No, that was random non sense from Frogwares. The court
             | explicitly disagreed on this point in October (two months
             | after the article you are posting). They seem to have a
             | terrible lawyer.
             | 
             | The appeal court threw away the Force Majeur argument
             | because both actors demonstrably kept b'their activity
             | going as usual and it would have been an argument in favor
             | of Nacon anyway. Force Majeur would have justified them not
             | fulfilling their part as a distributor but they
             | demonstrably did.
             | 
             | The court stated that the termination of the contract
             | wasn't legal because Frogwares had no basis to terminate
             | it. Frogwares alleges that Nacon didn't pay them all they
             | were due. Nacon disagrees and states that they correctly
             | paid royalties minus the costs of distribution per the
             | contract. Frogwares did ask to see proofs of these costs
             | and gave Bacon a month to produce them. They then used
             | Nacon's failure to do so as reason to terminate. However,
             | as stated by the court, that was never what was planned in
             | the contract. While Frogwares has a right to audit Nacon
             | (which they didn't properly use), Nacon is under no
             | obligation to send them arbitrary documents.
             | 
             | Note that it remains entirely possible that Nacon is
             | actually underpaying Frogwares. It's just they went at it
             | in an utterly stupid way.
        
       | marcodiego wrote:
       | How about releasing the game under an open source license and
       | then complaining that they are not respecting the license and
       | breaking copyrights of the artists?
        
       | Sebguer wrote:
       | This same publisher released a game based on the Paranoia
       | tabletop setting, and then removed it from all platforms ~two
       | months later without a single reason or announcement. To this
       | day, no one knows why they removed it. The game wasn't great, but
       | it certainly wasn't "delete from the internet without a word"
       | bad. https://www.pcgamer.com/whatever-happened-to-paranoia/
        
       | legitster wrote:
       | I hadn't heard of this before, so maybe I am missing some context
       | here, but something seems fishy:
       | 
       | > Steam is one of the listed platforms of commercialization in
       | the contract between Frogwares and Nacon. But since the release
       | of the game, Nacon's unlawful actions have forced Frogwares to
       | defend its property and react in front of the French Justice for
       | lack of payments, attempts to steal our IPs, etc which we made a
       | public letter about back in August 2020.
       | 
       | Here's the previous statement from Nacon:
       | 
       | https://store.steampowered.com/news/app/750130/view/30584784...
       | 
       | I can't find any of the details about Nacon's unlawful actions,
       | and it seems Frogware is being intentionally vague. Doing some
       | digging, it seems like this is almost a complete retread of a
       | legal battle they had before:
       | 
       | https://twinfinite.net/2019/09/frogwares-games-delisted-alle...
       | 
       | It seems like they may have a history of playing a copyright game
       | with publishers - take their money to develop a game, then use
       | legal trickery to take back the property outright.
       | 
       | In this case Nacon may have felt they had a "mechanic's lien" on
       | the code and felt justified stealing it back outright (probably a
       | bad choice in the long run). But regardless, I don't get the
       | sense that Frogwares is completely being on the up and up about
       | the relationship with their exes.
       | 
       |  _Update_ : Frogwares has a much more detailed list of grievances
       | here: https://frogwares.com/the-sinking-city-is-being-delisted-
       | her... Some seem petty and some seem serious. But it still leaves
       | questions. How much did Nacon already pay Frogwares? Does
       | Frogwares plan on paying it back?
       | 
       | > The agreement is, therefore, terminated without further
       | formality. Moreover, on July 17, 2020, Nacon attempted to oppose
       | the termination in court, but the judge rejected the demand, and
       | the contract is now terminated in the eyes of the law.
       | 
       | Maybe French law is much weirder than ours, but this phrasing
       | would be highly suspect in the US. You would get a really
       | affirmative ruling that you are still bound by contract or not.
        
         | reitzensteinm wrote:
         | That doesn't seem like a retread at all. Sherlock Holmes vs
         | Jack the Ripper, for instance, was released in '09, and the
         | dispute happened in 2019. A ten year period of exclusivity
         | would not be uncommon, and neither would a publisher dragging
         | their heels on handling it at the end.
         | 
         | It's very possible that the producers, lawyers and business
         | development people involved in the original deal had all moved
         | on. NOLF is famously not getting a remaster because nobody can
         | figure out who owns it!
         | 
         | Maybe Frogwares is a bad actor, I don't know. But game
         | publishers are notorious for trying to get away with all sorts
         | of shit with studios that cannot afford to fight back, so
         | there's another possibility: Frogwares is prepared to litigate
         | to defend what is legitimately theirs.
        
           | toyg wrote:
           | _> NOLF is famously not getting a remaster because nobody can
           | figure out who owns it!_
           | 
           | Yet another way the games industry is just "movie industry
           | 2.0". The web of production and distribution deals in the
           | movie biz is notoriously hairy, prone to end up in situations
           | where IP ownership is contested. Which is a shame, really.
        
           | legitster wrote:
           | Absolutely fair. I just want to make sure we don't rush to
           | white knight someone in what from a distance could very well
           | be a domestic squabble.
           | 
           | I don't doubt for a second that the publishers are crappy
           | actors. But on the same token, you wouldn't expect them to do
           | something so brazenly awful unless they had a legal leg to
           | stand on.
        
             | mym1990 wrote:
             | More like a peg to stand on. Yarrr.
        
         | fnordsensei wrote:
         | > I can't find any of the details about Nacon's unlawful
         | actions, and it seems Frogware is being intentionally vague.
         | 
         | They are not.
         | 
         | They've written about it before: https://frogwares.com/the-
         | sinking-city-is-being-delisted-her...
         | 
         | In short,
         | 
         | - They have withheld payments owed Frogwares.
         | 
         | - They have been behind on payments made by on average 40 days.
         | 
         | - They have incorrectly claimed to own the IP to third parties,
         | including in their IPO.
        
           | legitster wrote:
           | Yes! I updated my post when I saw this.
           | 
           | I can't imagine it will be so simple for Frogwares to rip up
           | their contract and walk away with the money they were paid
           | already. But I imagine their publisher openly ripping off
           | their game will make upcoming settlements really easy for
           | them.
        
             | batmansmk wrote:
             | The court ordered Frogwares to deliver the sources in
             | October with 50k euros of penalty per day not shipping
             | them. Frogwares did not deliver anything. As an Irish
             | company with offices in Ukraine having to settle against a
             | french publisher paying taxes in France, low standing in
             | court (several lawsuits) and not having executed previous
             | court orders, it sounds harder from my point of view. I can
             | imagine a world where they even end up having to pay for
             | the hacking cost as well.
        
               | grumple wrote:
               | Seems kinda weird. I wonder if Frogwares could sue in a
               | US court? Both companies probably do the bulk of their
               | business in the US and are selling through US-based
               | stores.
        
               | Daho0n wrote:
               | Why? It's not any better than where they are now. If
               | anything US court will drag it our even longer. Also
               | Frogware already lost.
        
               | avereveard wrote:
               | was the original contract ever produced or available?
               | 
               | > to deliver the sources
               | 
               | this seems weird, since one party is telling the world
               | from their blog the source transfer was never part of the
               | agreement
        
               | niea_11 wrote:
               | I don't think the court ordered them to deliver the
               | source code.
               | 
               | I didn't read the full decision linked by @ernesth, but
               | this part says that they have to deliver two "masters",
               | one drm free and one for Steam.
               | 
               |  _Sur la livraison des formats manquants :
               | 
               | -- ordonner a Frogwares Ireland de lui livrer les deux
               | masters du jeu 'The Sinking city' sur format PC DRM Free
               | et Steam sous astreinte de 50.000 euros par jour de
               | retard a compter du 5 eme jour suivant la notification
               | par e-mail de la decision a intervenir_
               | 
               | I think the meaning of master in this case is Gold Master
               | : https://en.wikipedia.org/wiki/Software_release_life_cyc
               | le#RT...
        
               | batmansmk wrote:
               | You are right, it's the gold DRM free master, not the
               | sources. But Frogwares still didn't deliver those two
               | builds.
        
             | fnordsensei wrote:
             | In my opinion (IANAL), making claims in their IPO that
             | aren't true might end up being the most damaging for them,
             | if found to be true, and if someone cares to work that
             | angle.
        
         | ernesth wrote:
         | > Maybe French law is much weirder than ours, but this phrasing
         | would be highly suspect in the US. You would get a really
         | affirmative ruling that you are still bound by contract or not.
         | 
         | French law is not that strange :). But the decision was
         | appealed and it seems Nacon won in appeal (in october 2020),
         | which allowed them to pursue the contract and to publish the
         | game another time.
         | 
         | The decision:
         | https://webcache.googleusercontent.com/search?q=cache:DwqXp6...
        
           | [deleted]
        
           | [deleted]
        
           | legitster wrote:
           | This seems like exactly what is missing from their story.
           | Unless something more recent was issued, they were flagrantly
           | ignoring a direct court order.
        
             | strogonoff wrote:
             | Summary of the timeline, based on a previous post by
             | Frogwares[0]:
             | 
             | In 2019:
             | 
             | -- Publisher paid for game development, though usually not
             | on time. Per contract, IP remained with the game dev, and
             | there was no obligation to hand over the source.
             | 
             | -- Publisher hired another studio to work on a similar
             | game, and started demanding source code from game dev.
             | 
             | -- Game dev delivered the game (not the source). (Not clear
             | whether on time or not.)
             | 
             | -- Publisher released the game, and immediately withheld
             | profits from sales (with some mechanism referred to as
             | retroactive milestone cancellation).
             | 
             | -- Publisher was also found to remove game dev's logo,
             | buying domain names reflecting game dev's brand, mislead
             | the public as to who had the rights to the game, and do
             | other shady things.
             | 
             | -- Game dev sued, with unknown outcome.
             | 
             | In 2020:
             | 
             | -- Attempt to pirate the game by the publisher was
             | discovered (February). (Note: this is alleged to have
             | happened _long before publisher won on appeal,_ so it's not
             | as if the publisher decided to pirate the game after the
             | court determined they are owed the source.)
             | 
             | -- Game dev terminated the now-breached contract and
             | notified the publisher. Publisher claimed _French COVID
             | regulations precluding contract termination_ (?!).
             | 
             | -- Publisher sued and lost (July).
             | 
             | -- Publisher appealed and won (October). (This happened
             | after the publication of the post I referenced.)
             | 
             | This obviously presents game dev's perspective only. It
             | seems exhaustive enough though, and so far I'm inclined to
             | think they aren't distorting facts and may have been taken
             | advantage of by a larger business (the publisher).
             | 
             | Violating a court order is bad, and if game dev was ordered
             | to hand over the source they should probably have complied.
             | That aside, it's unclear whether the courts ultimately
             | sided with the good guy here. Sadly, if game dev's the
             | victim here, appealing cross-border may be infeasible for
             | them.
             | 
             | [0] https://frogwares.com/the-sinking-city-is-being-
             | delisted-her...
        
               | bluesign wrote:
               | If you read the court ruling (in some comment around
               | here, but in french) it makes things a little bit more
               | clear.
               | 
               | - publisher not asking for the source code, they want GM
               | copies
               | 
               | - publisher didn't demand source code according to
               | contract ( they state publisher asked for code, but there
               | is no indication they demanded )
               | 
               | - they didn't deliver the game, at least drm free and for
               | steam
               | 
               | - publisher usually has non exclusive usage right to IP
               | 
               | But most important, they contacted steam etc and delisted
               | game still appeal process was going, citing IP reasons.
               | 
               | Also they are even defensing that delaying steam release
               | didnt cause any harm to the publisher.
               | 
               | They are acting in bad faith clearly.
        
               | strogonoff wrote:
               | I'm not a lawyer, but isn't it reasonable to pull the
               | plug as soon as the publisher had lost the contract
               | termination lawsuit? Otherwise it seems like a loophole
               | if the publisher can keep appealing indefinitely while
               | getting (and withholding from game dev) all profits from
               | the sales.
               | 
               | > they didn't deliver the game
               | 
               | I don't think either of us knows what exactly the
               | delivery entailed (if you do, you could share a source),
               | but as far as I understand the game _was_ delivered as it
               | was sold by the publisher (who kept and /or didn't
               | completely disclose profits--against the terms, it
               | appears) and played by the users.
               | 
               | > they state publisher asked for code, but there is no
               | indication they demanded
               | 
               | According to their post, publisher hired another studio
               | to work on a similar game, and apparently wanted to have
               | the code for that purpose. "Ask for" is different from
               | "demand", I agree, though it does sound like they were
               | pressured.
               | 
               | That aside, are you basically saying the game dev is
               | lying and their contract with the publisher was different
               | from what they claim in their posts? I guess we can't say
               | for sure, absent evidence, but I don't see why they'd lie
               | here.
        
               | legitster wrote:
               | > I'm not a lawyer, but isn't it reasonable to pull the
               | plug as soon as the publisher had lost the contract
               | termination lawsuit? Otherwise it seems like a loophole
               | if the publisher can keep appealing indefinitely while
               | getting (and withholding from game dev) all profits from
               | the sales.
               | 
               | On the contrary, it sounds like the publisher had already
               | given the develop several millions of dollars to develop
               | the game. You can't just declare a contract void, keep
               | the money, and tank the deal.
               | 
               | https://webcache.googleusercontent.com/search?q=cache:Dwq
               | Xp6...
               | 
               | Frogwares was under a court order to fulfill their
               | obligation.
               | 
               | IANAL, but it's worth pointing out that none of the court
               | orders precluded a lawsuit for Frogwares to collect their
               | fair share. But them violating their obligations in the
               | mean time is probably bad faith and will land them in hot
               | water.
        
               | vitus wrote:
               | The formerly-alleged logo removal was from console game
               | covers and from marketing materials. Which, while
               | sketchy, isn't necessarily a violation of copyright,
               | unless the game devs designed the covers.
               | 
               | > Attempt to pirate the game by the publisher was
               | discovered (February). (Note: this is alleged to have
               | happened long before publisher won on appeal, so it's not
               | as if the publisher decided to pirate the game after the
               | court determined they are owed the source.)
               | 
               | Actually, there are two alleged instances of piracy.
               | 
               | First, in Feb 2020, their game was slated to be listed on
               | a distribution platform that was not agreed upon.
               | 
               | (In August 2020, they removed their game from Steam.)
               | 
               | Second, in Feb 2021 (just last week!), the deluxe version
               | of their game was listed on Steam with identifying
               | watermarks, copyright, digital signing, and more removed
               | _from the software_.
        
       | MikeUt wrote:
       | Isn't what Nacon did illegal under the anti-circumvention
       | provision of the DMCA?
        
       | bilekas wrote:
       | I remember reading about this from a long while ago.
       | 
       | Some publishers treat their partner studios like garbage, and it
       | seems more and more studios treat their developers like garbage.
        
         | Daho0n wrote:
         | Clearly it goes both ways.
        
       | YeGoblynQueenne wrote:
       | More background from the point of view of Frogware:
       | 
       |  _The Sinking City is Being Delisted. Here's Why_
       | 
       | https://frogwares.com/the-sinking-city-is-being-delisted-her...
       | 
       | Without wishing to take sides, here's what seems to be at the
       | root of the dispute, from Frogware's POV:
       | 
       |  _On June 27, 2019, The Sinking City was released on Xbox One,
       | PS4, and Epic Games Store. That was a great day for us. And once
       | the game was released, we received a letter from Bigben /Nacon
       | that the milestones that were previously approved are being
       | canceled, meaning that we would not receive any profit from the
       | sales of the game. A retroactive cancellation on not delivering a
       | product on time that is already out in the market is not
       | acceptable. That was when our legal battle began._
       | 
       |  _We filed a lawsuit against Bigben /Nacon on August 2019 and,
       | incidentally, only then we started to receive income reports,
       | though incomplete and undocumented. So it was not possible for us
       | to see if the revenue was correctly calculated or even how many
       | units we sold. At some point we received a statement claiming
       | that one of the console manufacturers hasn't paid royalties for
       | more than 5 months, while actually the same console manufacturer
       | paid our royalties from other games without any delay in the same
       | period of time._
        
         | legitster wrote:
         | From below in the comments:
         | https://webcache.googleusercontent.com/search?q=cache:DwqXp6...
         | 
         | They seem to be under a court order to at least fulfill their
         | contract obligations until the dispute is resolved.
        
       | ajarmst wrote:
       | I'm less intrigued by the fact that this happened than by the
       | fact that it was such a childishly incompetent effort at IP
       | theft.
       | 
       | I'm not sure how French courts would differ, but in my
       | jurisdiction, if a company that was failing to get what it wanted
       | from the court just went and stole it, mid-litigation, there
       | would be a very unpleasant discussion with the judge about what
       | was going to happen next.
        
       | bibinou wrote:
       | Full text of the decision given on October 29, 2020 by the Court
       | of Appeals, in French: https://archive.is/Ezj08
        
       | bogwog wrote:
       | The only thing I got out of this fiasco is that I should trust
       | neither Nacon nor Frogwares.
        
       | Paul_S wrote:
       | Publishers abuse studios, studios abuse games developers. You'd
       | expect developers to leave and set out on their own or at least
       | change industries.
        
         | moron4hire wrote:
         | I call this the "not as smart as we think we are" problem.
         | 
         | Given on premise, "everyone" thinks their boss is a dope and
         | they could do a better job.
         | 
         | If this were true, then companies built by disgruntled
         | employees leaving their bosses to do said "better job" should
         | be able to outcompete their former employers. Market pressure
         | should push other competitors to adopt similar "better job"
         | practices, and the "dope manager" problem should evaporate
         | away.
         | 
         | But it hasn't. We'll even hear stories about companies that
         | were started with this intention (e.g. Valve), only to later
         | hear other stories about how the bosses are dopes.
         | 
         | I consider one of two possibilities: either there is no such
         | thing as market competition, or the original "everyone" is not
         | as smart as they think they are, and can't actually do a better
         | job.
         | 
         | It could be that success turns you into a dope, but that
         | doesn't change anything. The lack of ability to perpetually do
         | a "better job" pushes us into the "no real market competition"
         | scenario.
         | 
         | I'm actually on the fence as to which possibility I believe is
         | the case. I suspect both are largely true, but which one is
         | dominant is not clear.
         | 
         | As another example of "no real market competition" problem,
         | consider that even small towns have multiple pizzarias, all of
         | which are essentially identical, and equally shitty. They order
         | their ingredients from the same vendors. They either order
         | their equipment from the same vendors, or get it used from the
         | previous pizzeria that went under because it's in a terrible
         | location/ran by a dope, who themselves ordered everything from
         | the same vendors. This "shitty pizzeria" model of markets
         | states that store-front location and customer price biases are
         | much stronger elements of success than product quality, as no
         | pizzeria could afford the marginal cost of improving their
         | product to attempt to capture a greater proportion of
         | customers.
         | 
         | I think a lot of software gets made under the "shitty pizzeria"
         | model. Most software consulting seems to be more about where
         | the consultant is located than what the consultant can do. And
         | in particular, I think a lot of the indie games market fits
         | this market, made famous by memes showing rows upon rows of
         | nearly identical icons in game app store listings.
        
       | cortesoft wrote:
       | This is very strange. This sounds like something that should be
       | settled in the courts; I can't imagine a lawyer would recommend
       | making public claims like this while lawsuits are pending.
       | 
       | This all seems very amateurish.
        
         | alisonkisk wrote:
         | Lawyers and clients usually make public statements to support
         | their case, for PR.
        
           | Gene_Parmesan wrote:
           | Case is already over. Nacon won. For better or worse, the
           | developer is trying to win people over to their side on a
           | case that was already decided.
           | 
           | I understand the huge frustrations they must be feeling, and
           | they have legitimate complaints. But trying to rally public
           | opinion against a publisher over a suit they lost is not
           | going to make it easy for them to find publishers in the
           | future.
        
             | strogonoff wrote:
             | It is most certainly appropriate for a victim to rally
             | public opinion and raise awareness if someone acts
             | maliciously taking advantage of the [therefore, broken]
             | legal system supporting them. If the situation is anywhere
             | near to what Frogwares claims it to be, it's most
             | definitely worth public attention and outrage.
             | 
             | That said, to me it seems so far that it's one of those
             | "another country, not my problem" cases. Publisher's in
             | France, developer's in UK (or Ukraine?)--even if game
             | developer has the money, best of luck suing cross-border,
             | especially in current times.
        
             | mijoharas wrote:
             | why are you saying the case is over?
             | 
             | Case found in favour of frogware.
             | 
             | Nacon appealed and won the appeal.
             | 
             | frogware is appealing which we're waiting to hear the
             | outcome of.
        
         | ernesth wrote:
         | A judgment has already been given, which Frogwares lost.
         | 
         | The judgment, in october 2020, said that frogwares had
         | illicitly tried to end their contract with Nacon. They were
         | condemned to pursue the contract. Hence Nacon has published the
         | game as it was the object of the contract.
        
           | cestith wrote:
           | Frogwares was ordered to continue the contract _while it
           | continued to be litigated_ was the ruling I read. If
           | Frogwares is in breach of a court order, the solution is to
           | file a complaint with that same court that the order isn 't
           | being fulfilled. It almost certainly was not the court's
           | intent that Nacon bought a copy at retail, made changes to
           | the game, and published it under their own name with no
           | attribution to Frogwares.
        
           | jiofih wrote:
           | Their issue doesn't seem to be with Nacon publishing the game
           | though, but trying to appropriate their IP and even releasing
           | other products without permission. That sounds like a clear
           | breach of contract.
        
             | cortesoft wrote:
             | How would we know, we haven't seen the actual contract.
        
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