A lawsuit with record label EMI may very well kill 4mm Games, the company that, along with Terminal Reality, brought the popular DEF Jam Rapstar game to life in late 2010. But the lawsuit with EMI filed earlier this year against both companies may end up bankrupting the studio long before it ever gets to the point of a resolution in the case.
Speaking to GamesIndustry International in a lengthy interview today, 4mm Games co-founder Jamie King said that his company's ongoing legal battle with record label has made it so that he can't find any more funding for future projects. Add to that the mounting legal fees and things do not look good for 4mm Games.
"We have not got any new funding and obviously we need to resolve everything with Rapstar," he noted. "I get very annoyed at times, I would like there to be a way out of it but I don't know if that's going to happen."
EMI filed a lawsuit earlier this year in New York claiming that the developers of Def Jam Rapstar owe them at least $8 million for unlicensed music used in the game.
For now the company is simply in limbo. It has developed a number of projects – some of which have been cancelled – but ultimately it can't do anything without some funding, and it can't get that funding with an $8 million lawsuit hanging over its head. If the company does go bankrupt, at the end of the day you can thank EMI.
You can read the rest of the interview here.