A pair of indie gaming companies may have tossed a wrench into Activision’s plans to piggyback on the success of its Guitar Hero franchise with the upcoming "DJ Hero" game. Genius Products and Numark Industries, the two companies behind the as-yet-released "Scratch: The Ultimate DJ" game, have filed a lawsuit in California against Activision and developer 7 Studios for “intentional interference with contract, breach of contract, conversion and misappropriation of trade secrets.”
Activision tried to acquire the rights to Scratch; once Genius rejected the offer, Activision went on to acquire 7 Studios. The problem is, the developer was still under contract (complete with a non-disclosure and confidentiality agreement) to make the game for Genius.
Genius is arguing that its proprietary trade secrets were exposed, and that the two companies conspired to keep Scratch from getting to market by withholding “work product,” including code and the signature turntable-style controller. Genius and Numark are seeking “substantial damages.” The complaint can be viewed here: http://www.scribd.com/doc/14234613/041409-Scratch-DJ-Game-Complaint-vs-Activision-Publishing-Et-Al.