Taiwan-based online game operator Soft-World International has filed a lawsuit against Japan-based Square Enix, alleging that the Japanese company has failed to comply with a sales contract and demanded Square Enix to pay back a royalty payment of US?3.78 million, according to sources at Soft-World.
The two companies signed the contract in late 2004, under which Soft-World would act as sales agent for the launch of a MMORPG (massively-multiplayer online role-playing game) developed by Square Enix, in five markets—Taiwan, Hong Kong, Macau, Malaysia and Singapore—starting in late 2005, the sources said, adding that Square Enix was then obliged to supply Soft-World with source code to enable the launch of the game.
Soft-World claims that the Japanese online game developer has failed to provide the company with the source code, making it difficult to launch the game as scheduled, and so is trying to solve the dispute by getting back its royalty payment.