View source for Crytek v Cloud Imperium Games

'''Crytek GmbH v. Cloud Imperium Games Corp and Roberts Space Industries Corp''' was a lawsuit brought by [[Crytek]] for copyright infringement and breach of contract.

The lawsuit was based on the General Licence Agreement (GLA) that both parties signed, with Crytek asking for direct and indirect damages as well as a permanent injunction against further use of the [[CryEngine]] in any ''[[Star Citizen]]'' or ''[[Squadron 42]]'' materials.<ref>[https://www.courtlistener.com/docket/6256484/1/crytek-gmbh-v-cloud-imperium-games-corp/ Crytek GmbH v. Cloud Imperium Games Corp., 2:17-cv-08937, (C.D. Cal. Dec 12, 2017) ECF No. 1]</ref> Crytek did not attach the General License Agreement to its complaint, which CIG later called deliberately ommiting and hiding, to which Crytek answered it had no obligation to do so and that it contained sensitive business information. The GLA was attached to the lawsuit by CIG.

The lawsuit lasted from December 12th 2017 to March 2020 and ended as a dismissal with prejudice, meaning that the claims won't be able to be raised again.<ref name=":6">[https://www.courtlistener.com/docket/6256484/127/crytek-gmbh-v-cloud-imperium-games-corp/ Crytek GmbH v. Cloud Imperium Games Corp., 2:17-cv-08937, (C.D. Cal. Mar 24, 2020) ECF No. 127]</ref>

Crytek claimed that CIG was only given permission to make {{em|one}} game with CryEngine, Star Citizen, {{em|not two}}, ''Star Citizen'' and ''Squadron 42''. However the GLA specifies granting the license to use CryEngine for "the game currently entitled ''Star Citizen'' and it's related space fighter game ''Squadron 42''".<ref name=":5">[https://www.techdirt.com/2018/01/22/it-kind-looks-like-crytek-sued-star-citizen-developer-pretending-engine-license-says-something-it-doesnt/ It Kind Of Looks Like Crytek Sued Star Citizen Developer By Pretending Its Engine License Says Something It Doesn't], TechDirt, Jan 22nd 2018</ref> In addition, the Game in the GLA is {{em|defined as both together}} on the very first page of the contract, and described as all content accessed by players through the game launcher. Among others, Crytek arguments included the definition being in a recital rather the main body of the LGA.

Per the GLA, for ''Star Citizen'' and ''Squadron 42'' to be separate games, they would also have to be sold and marketed separately {{em|and}} not be accessed through the same launcher, meanwhile, aside from using the same launcher, ''Squadron 42'' is {{em|not yet being sold}}.

Additionally, this term only applies to games made with CryEngine, while ''Squadron 42'' is no longer using it.<ref name=":3">[https://www.courtlistener.com/docket/6256484/38/crytek-gmbh-v-cloud-imperium-games-corp/ Crytek GmbH v. Cloud Imperium Games Corp., 2:17-cv-08937, (C.D. Cal. Aug 14, 2018) ECF No. 38]</ref> In order for the breach of contract claim to be valid, ''Squadron 42'' would need to be sold {{em|and delivered}} before CIG stopped using CryEngine. Pre sales and announcements without delivery of product do not count for damages in breach of contract claims. In order to quantify the damages, the amount of infringing copies sold and delivered need to be quantified, along with the actual damages suffered.

The later copyright claim by its nature could have the right to claim statutory damages in case of proven breach of copyright if CryEngine had been registered before the LGA which was not the case,<ref>[https://cocatalog.loc.gov/cgi-bin/Pwebrecon.cgi?SAB1=TX0008447347+%2F+2017-12-11+&BOOL1=all+of+these&FLD1=Keyword+Anywhere+%28GKEY%29&GRP1=OR+with+next+set&SAB2=&BOOL2=as+a+phrase&FLD2=Keyword+Anywhere+%28GKEY%29&PID=d7TNRfEOiuX5VZOBHnJchdisTBoDKIb&SEQ=20230718155246&CNT=25&HIST=1 CryEngine 3 Registration of Copyright, TX0008447347 / 2017-12-11], United States copyright office</ref> which means Crytek would not be entitled to statutory damages and would have to rely on actual damages, which loops back to the argument seen in the breach of contract, of how many copies of ''Squadron 42'' were sold and distributed, and of tying this to actual damages suffered by Crytek.

Due to CIG switching from CryEngine to [[Amazon Lumberyard]],<ref>{{Cite RSI|url=https://robertsspaceindustries.com/comm-link/press/15660-star-citizen-and-squadron-42-utilize-amazon-lumberyard-game-engine|text=Star Citizen and Squadron 42 Utilize Amazon Lumberyard Game Engine|accessdate=2015-12-23}}</ref><ref>[https://wccftech.com/star-citizen-switches-engines/ Star Citizen Switches Engines: Move Along Folks, Nothing to See Here], wccftech, Dec 24, 2016</ref> Crytek’s leading cause of action claimed that CIG had {{em|the obligation}} to use CryEngine and wasn't allowed to move away from it, since CIG was given "exclusive rights to use CryEngine". However there was no merit to the claim as it meant that the license was giving {{em|the right}} to use CryEngine but {{em|not the obligation}}.<ref name=":5" /> What it meant was that CIG was forbidden from using CryEngine in any other format in any other game. This claim was particularly impactful as other claims such as the trademark and copyright notices depended on it. The Court granted CIG’s motion to dismiss the claim as unsupported by the plain language of the GLA and anathema to the concept of a license.

After the dismissal of the obligation to use CryEngine, Crytek added a new claim in its Second Amended Complaint alleging that CIG violated the GLA by promoting other game engines, namely [[Star Engine]] and Lumberyard,<ref name=":0">[https://www.courtlistener.com/docket/6256484/38/crytek-gmbh-v-cloud-imperium-games-corp/ Crytek GmbH v. Cloud Imperium Games Corp., 2:17-cv-08937, (C.D. Cal. Aug 14, 2018) ECF No. 38]</ref> due to a provision lasting the term of the GLA and two years after termination. Crytek argued that CIG promoted other game engines, a claim mostly based on CIG announcements.<ref name=":0" /> If correct, this would lead for example to CIG not being able to display the Amazon Lumberyard trademarks and copyright notices despite using the engine, which in turn would make even less sense if, as per another claim, CIG was also required to still display those of an Engine it doesn't use anymore.