Activision Settles Suit With 'Call of Duty' Creators

On the eve of trial, Santa Monica-based video game giant Activision Blizzard announced Thursday it had settled various multimillion-dollar lawsuits between the company and developers of the "Call of Duty" game series over rights and profits from the game.

In a prepared statement, Activision announced that the terms of the settlement "are strictly confidential."

The legal battle began when game designers Jason West and Vincent Zampella sued Activision for wrongful termination after they were fired in 2010. They claimed their firing cost them millions of dollars in royalties.

Activision countersued the pair, accusing them of trying to switch to rival game-maker Electronic Arts. The company was also sued by dozens of other game designers who left Activision to join West and Zampella.

Total damages claimed in the various lawsuits topped $2 billion, the Los Angeles Times reported.

Experts in the video game industry told the Times the case was being closely watched as a landmark dispute over designers' rights.

"This legal battle is the most significant in video game history," Evan Wilson, an analyst at Pacific Crest Securities, told the Times. "It's been a major distraction for senior management at Activision at a time when the industry is going through one of its most difficult periods."

-- City News Service