Harmonix and Activision in $14.5m Guitar Hero dispute

Activision and Harmonix are currently in discussions over USD 14.5 million in royalties that the publisher allegedly owes the Guitar Hero developer.

Harmonix Music Systems filed a lawsuit on Monday, but the suit was withdrawn on Tuesday as Activision agreed to talks out of court, reports Variety.

The developer created the first two Guitar Hero titles for Activison before it was acquired by MTV Networks in late 2006. Activision then moved the development of Guitar Hero III to internal studio Neversoft.

The lawsuit alleges that Harmonix' technology was used in the development of Guitar Hero III, and that the developer should be paid royalty rates if any sequel it doesn't work on âincorporates, uses, or is derived from Harmonix property.â

"(Activision) has failed to pay Harmonix its full share of royalties earned in connection with Harmonix' essential and undisputed contributions of its intellectual property and technology to the best-selling videogame Guitar Hero III," reads the lawsuit.

However, Activision has countered that it has paid the developer for all royalties on the Guitar Hero games.

"Activision believes it has made sufficient payments to Harmonix and the claims otherwise do not have merit," said general counsel George Rose.