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To: Johnny Canuck who wrote (39840)	7/1/2003 10:41:42 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 71726

Viacom sued for letting Star Trek 'stagnate' By Christopher Parkes in Los Angeles Published: July 1 2003 19:48 \| Last Updated: July 1 2003 19:48 Activision, a leading video games producer, is suing Viacom over its multi-million-dollar licence to exploit the Star Trek franchise, alleging the media group let it "stagnate and decay". The company said it had terminated its contract - signed in 1998 and with five more years to run - because Viacom had apparently decided not to make any more films. The latest TV series is struggling for ratings. The case exposes the mounting costs - and risks - in the video games business as it forges closer links with Hollywood film studios, in an attempt to latch on to successful movie franchises. Activision's contract committed it to paying Viacom $20m in royalties and granting the group hundreds of thousands of stock warrants, of which some $10m have already been redeemed. The latest Matrix game produced by Atari under a licence from Warner Bros, is believed to have cost $30m. The last Star Trek film - 10th in the sequence - flopped at the box office last year. At the time, British actor Patrick Stewart, who starred as captain of Starship Enterprise for 16 years, announced he would make no more. "When the party comes to a close, it is best to leave before you are the last guest," he said. Activision, which has made 10 Star Trek games, said that by refusing to exploit the franchise as promised, Viacom reduced the value of the licensing rights and caused Activision "significant damage". In the past the media group had released a film every two or three years, but had released only one since the deal was signed. "A continuing pipeline of movie and television production - and related marketing - is absolutely crucial to the success of video games based on a property such as Star Trek", Activision said. Full-scale legal disputes are common in the film industry, but it has been rare for video game licensees, small players, to challenge the studio giants. Activision's suit demands unspecified damages and restrictions on the 225,000 outstanding stock warrants to prevent Viacom exercising them.