Rhode Island Owns Amalur if 38 Studios Defaults
If 38 Studios does go under, Rhode Island could end up owning some new intellectual properties.
A story on Joystiq details that, besides taxpayers having to pay off the $75 million bond through 2020 if the studio defaults, the state will reportedly own all of the studio’s IPs, including Amalur.
The studio put up all present and future IP as collateral to the Rhode Island Economic Development Corporation, covering “all rights, title and interest in any projects, including video game projects.”
“Based on what information I’ve been able to review on the 38 Studios situation, it appears that the funds they received from the RIEDC were secured by collateral that amounts to all of 38 Studios assets, including all of their intellectual property,” attorney and Law of the Game editor Mark Methenitis told Joystiq. “That would include all the rights to Kingdoms of Amalur and any other games they may have in development, even if no information about those titles has ever reached the light of day.”
Methenitis added that, if the properties go to RIEDC, they could sell them to another developer to make back their money.
“As a secondary issue, if the sale of all those assets repossessed ends up being more than is owed, the RIEDC will theoretically owe those funds back to 38 Studios,” he said.