Webzen And Red 5 End Legal Battle Over Firefall

by Matt Helgeson on Sep 29, 2011 at 03:13 PM

After an ugly lawsuit regarding Webzen's deal to publish Red 5's Firefall in Korea, the two companies have decided to end their legal wrangling.

Firefall is an impressive MMO that looks to bring a fresh spin to the genre (for more, check out our hands-on impressions here), but a publishing agreement between developer Red 5 and Webzen had recently turned sour. Starting things off was an arbitration filing by Red 5 against Webzen, alleging breach of contract and seeking damages of $5 million. In response, Webzen filed a lawsuit against Red 5, stating that Red 5 delayed testing of the game and sent out press releases without permission from Webzen.

Thankfully, the sides have decided to bury the hatchet. In a press release just sent out, Red 5 revealed that it has reached a settlement with Webzen. Here are the terms:

"Under this agreement, Webzen will receive compensation for the prior development fees paid to Red 5 and also will share in future revenue generated from Red 5’s game entitled Firefall for a certain period of time. Red 5 and its affiliated company received the global publishing rights under the settlement agreement. Webzen will no longer be involved in marketing and publishing Firefall in any territory as a result of this agreement."

Hopefully this will allow both sides to continue doing the important things -- like working on games.