EA China Sued by Former Partner Skyhi Network

add time:4/3/2008 1:29:58 AM

In early 2006, EA licensed the operation and distribution of its online games in China to Skyhi Network. While the cooperation just lasted less than one year. EA breached the agreement unilateral, and owed a huge amount of salary and operation cost to Skyhi. After several resultless negotiation, Skyhi filed a lawsuit to the court today, claiming for RMB 13,925,380 compensation for the lost and acquirable profit from EA.

According to the files Skyhi presented to the court, Skyhi became the operator and distributor for EA online games in China on April 26th, 2006. In October 2006, EA stoped the payment for the operation cost and salaries. On January 5th, 2007, EA stopped the cooperation unilaterally, while Skyhi still provided test services for its game until August 2007.

After several negotiations, EA just paid for the salary and dismissal wage of ordinary employees, but did pay for the operation cost and salary and dismissal wage of management team since October, 2006. What's more, the license fee and the USD 200 million EA China promised was not paid yet.

Skyhi said that due to the breach of agreement by EA, Skyhi has suffered a loss of EA since October, 2006, which including the operation cost, and other cost regarding the labor cost. The cost sumed up to RMB 6,725,380.1. In addition, Skyhi claimed loss for expectation profit of USD 1 million.

The Court of Shanghai has accepted the lawsuit, and the trial will be held on May 13th.