3D Realms Drops “Duke Nukem” Royalty Lawsuit Against Gearbox.

dueknukem3Videogame developer Apogee Software, Ltd (d/b/a “3D Realms Entertainment”) has dropped its lawsuit against game developer Gearbox Software, LLC, in which it had generally alleged unpaid royalties in connection with Gearbox’s acquisition of rights in and to the “Duke Nukem” videogame brand and franchise.

In February 2010, 3D Realms and Gearbox entered into an Asset Purchase Agreement by which Gearbox purchased certain interests in the popular “Duke Nukem” videogame franchise, including the rights to complete and sell the videogames “Duke Nukem Forever” and “Duke Begins,” which were already under development.  In the lawsuit filed June 7, 2013 in the District Court of Dallas County, Texas (Cause No. DC-13-06381-K), 3D Realms alleged that Gearbox breached the February 2010 Purchase Agreement by claiming improper deductions and otherwise failing to pay royalties due under the Agreement, and by refusing to submit to an independent royalty audit as also provided  in the contract.  According to 3D Realms, the royalties due and owing were in excess of $2 Million.

Dallas County District Court records reflect that 3D Realms requested dismissal of the action with prejudice on September 12, and after virtually no case activity.  3D Realms principal Scott Miller contemporaneously confirmed in a public statement that no money had been exchanged  to resolve the case, and characterized the lawsuit as a “misunderstanding” as to the Parties’ respective rights and obligations.