Bam sued over unpaid royalties

Movie studio Spyglass Entertainment has filed a lawsuit against Bam Entertainment, alleging that the struggling publisher owes it over $260,000 in royalties for its Reign of Fire videogame.

Bam's deal with Spyglass was touted as one of the key accomplishments of the fledgling publisher a couple of years ago, as it gave the company unprecedented access to Spyglass' movie properties before they even entered production.

The deal has now turned sour, it seems, with Spyglass reporting that it has not received any royalty payments for Reign of Fire - the movie tie-in which was released last Autumn, and was developed by UK based Kuju Entertainment.

The film company claims that after "repeated requests", Bam eventually revealed that its revenues from the game totalled $5.21 million, which means that Spyglass is owed well over a quarter of a million dollars.

A lawsuit claiming these royalties was filed by Spyglass in Los Angeles on Tuesday. Given Bam's current financial difficulties - the company is struggling to retain its NASDAQ stock market listing at the moment - there must surely be a question mark over its ability to pay up if it loses the case.