?Call of Duty: Modern Warfare 2? Dispute Finally Over? Activision And Infinity Ward Lawsuit Reaches A Settlement

By Lisa Eadicicco | June 01 2012 1:08 PM

Activision and Infinity Ward heads Jason West and Vince Zampella have reached an agreement, according to Game Informer. An attorney told the gaming news publication that a settlement among all parties, which includes Activision, Jason West, Vince Zampella, and the Infinity Ward Employee Group, was met on May 31. No further details have been disclosed.

Reuters

Activision Publishing CEO Eric Hirshberg speaks during the premiere of the video game ''Call of Duty: Modern Warfare 3'' in Los Angeles, California September 2, 2011.

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The company does not believe that the incremental one-time charges related to the settlement will result in a material impact on its GAAP or non-GAAP earnings per share outlook for the current quarter or the calendar year, due to stronger-than-expected operating performance in the current quarter, Activision said.

An Electronic Arts spokesperson also issued the following statement to Game Informer:

Activision's refusal to pay their talent and attempt to blame EA were absurd. This settlement is a vindication of Vince and Jason, and the right of creative artists to collect the rewards due for their hard work.

At the end of May, West and Zampella also sat down with Game Informer to discuss the rift between the two companies.

I've never really been clear on that one, West said to the publication when asked how the issue began. I'm not sure what they're claiming. I know they are suing for a billion dollars and they haven't specified if they want it from EA or from me.

This was said almost a week before the settlement had been reached. In the middle of May, Activision paid $42 million to the Infinity Ward Employee Group without being told to do so. The group originally consisted of 38 plaintiffs, and was seeking royalty payments for their work on Call of Duty: Modern Warfare 2 in 2010, reported Polygon.

Although a settlement has been reached, Activision could find itself in some trouble with Infinity Ward with their next release. Call of Duty: Black Ops 2 will take place in the year 2025, which conflicts with the Memorandum of Understanding outlined by Infinity Ward. The document states that any Call of Duty titles set after Vietnam would be exclusive to Infinity Ward. Game Informer obtained these documents that include the clause last month.

The upcoming shooter's setting falls into the distant future category referred to in the MOU. However, now that an agreement has been reached, it is unclear if this will prove to be an issue.

Call of Duty: Modern Warfare 2 topped one billion in sales worldwide when it was released in 2010, according to the Los Angeles Times. However, analysts predict that the Black Ops sequel will not break records in this same manner.