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Tianyue Sues EA China for RMB 13.9 mln

DoNews, 3/31/08

Online game operator Tianyue Network Technology has sued Electronic Arts China for a total of RMB 13.9 mln in damages and future profits, claiming that the company's unilateral decision to end its partnership with Tianyue on January 5, 2007 caused Tianyue to assume major losses. Elaborating, Tianyue claimed that it had been forced to assume the losses sustained by EA - totaling RMB 6.7 mln - from October 2006 on, including operating costs, salaries for three senior executives, insurance and pension fund costs, and severance packages for the three senior executives, as well as USD 200,000 that EA owed Tianyue in registration costs. Tianyue has also demanded that EA pay compensation for USD 1 mln in profits lost due to EA's abrogation of its agreement.

Editor's note: For additional background on the previous relationship between EA China and Tianyue, please see "Tianyue Wins Exclusive EA Online Games Rights", MD 4/27/06 issue.

Keywords: law litigation Tianyue online gaming Electronic Arts Internet

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