Harmonix sues Activision over royalties, withdraws

It looks like the rhythm game battle between Activision and Harmonix extends beyond the sales gap between Guitar Hero III and Rock Band, as Harmonix sued Activision on Monday. The suit was withdrawn on Tuesday as the threat of a legal battle was apparently enough to make Activision talk with the company. According to the lawsuit, Harmonix asserts that it is owed $14.5 million in unpaid royalties for the use of its technology in Guitar Hero III and further asserts that the company has not received any money for song downloads, in-game ads, and related products. Variety reports that the lawsuit was "clearly intended" to lay down a precedent for future iterations of the Guitar Hero series (of which there are many, many planned). Activision, for its part, claims that it has paid Harmonix "sufficient" royalties.

[Via Joystiq]