CONFIDENTIAL LICENSE
AGREEMENT
FOR THE Wii™
CONSOLE
(EEA, AUSTRALIA, AND NEW
ZEALAND)
THIS LICENSE AGREEMENT ("Agreement") is entered
into between NINTENDO CO., LTD. ("NINTENDO") at 11-1 Kamitoba
Hokotate-cho, Minami-ku, Kyoto, Japan 601-8501,
Attn: General Manager, International Business
Administration Department (Fax: 81.75.662.9619), and
ACTIVISION, INC., a corporation of Delaware, and its subsidiaries
(Activision Publishing, Inc., a corporation of Delaware, Activision
UK, Ltd., a limited company of the United Kingdom; ATVI France,
S.A.S., a corporation of France; Activision GmbH, a corporation of
Germany, and Activision Pty., Ltd., a limited company of Australia)
(jointly and severally "LICENSEE") at 3100 Ocean Park Blvd., Santa
Monica, CA 90405, Attn: Mr. George Rose (Fax: 310.255.2152).
NINTENDO and LICENSEE agree as follows:
1.1 NINTENDO designs, develops, manufactures,
markets and sells advanced design, high-quality video game systems,
including the Wii™ video game console
("Wii™").
1.2 LICENSEE desires use of the highly proprietary
programming specifications, unique and valuable security
technology, trademarks, copyrights and other valuable intellectual
property rights of NINTENDO, which rights are only available for
use under the terms of a license agreement, to develop, have
manufactured, advertise, market and sell video game software for
play on Wii™.
1.3 NINTENDO is willing to grant a license to
LICENSEE on the terms and conditions set forth in this
Agreement.
2.1 "Artwork" means the text and design
specifications for the Game Disc label and the Printed Materials in
the format specified by NINTENDO in the Guidelines.
2.2 "Bulk Goods" means Game Discs printed with the
Game Disc label portion of the Artwork for delivery to LICENSEE
without Printed Materials or other packaging.
2.3 "Check Disc(s)" means the pre-production Game
Discs to be produced by NINTENDO.
2.4 "Confidential Information" means the information
described in Section 8.1.
2.5 "Development Tools" means the development kits,
programming tools, emulators and other materials of NINTENDO, or
third parties authorized by NINTENDO, that may be used in the
development of Games under this Agreement.
2.6 "Effective Date" means the date that LICENSEE
placed its first order for Licensed Products of October 24,
2006.
2.7 "Finished Product(s) means the fully assembled
Game Disc with a Game Disc label, Printed Materials, and packed in
a plastic storage case;
2.8 "Game Disc(s)" means custom optical discs for
play on Wii™ on which a Game has been stored.
2.9 "Game(s)" means any interactive programs
(including source and object/binary code) developed to be
compatible with Wii™.
2.10 "Guidelines" means the then-current version of
"Wii™ Programming Guidelines;" "Licensee Packaging
Guidelines" pertaining to the layout, trademark usage and
requirements of the Game Disc label, instruction manual and Game
Disc packaging; "Marketing Materials"; "Nintendo Trademark
Guidelines;" "Guidelines on Ethical Content"; and
"Nintendo Wii™ Software Submission Requirements,"
together with other guidelines provided by NINTENDO to LICENSEE
from time to time. The Guidelines on Ethical Content are attached
as Annex A, and the remainder of the Guidelines have been
provided to LICENSEE independent of this Agreement. The Guidelines
may be changed or updated from time to time without notice, and the
versions current from time to time will be available on request
from NINTENDO.
2.11 "Independent Contractor" means any individual or
entity that is not an employee of LICENSEE, including any
independent programmer, consultant, contractor, board member or
advisor.
2.12 "Intellectual Property Rights" means
individually, collectively or in any combination, Proprietary
Rights owned, licensed or otherwise held by NINTENDO that are
associated with the development, manufacturing, advertising,
marketing or sale of the Licensed Products, including, without
limitation, (a) registered and unregistered trademarks and
trademark applications used in connection with WiiTM including
NintendoTM, WiiTM, Official Nintendo Seal of QualityTM, and MiiTM,
(b) select trade dress associated with Wii™ and licensed
video games for play thereon, (c) Proprietary Rights in the
Security Technology employed in the Games or Game Discs by
Nintendo, (d) rights in the Development Tools for use in
developing the Games, excluding, however, rights to use,
incorporate or duplicate select libraries, protocols and/or sound
or graphic files associated with the Development Tools which belong
to any third party and for which no additional licenses or consents
are required, (e) patents, patent applications, design
registrations, utility models or copyrights which may be associated
with the Game Discs or Printed Materials, (f) copyrights in
the Guidelines, and (g) other Proprietary Rights of Nintendo
in the Confidential Information.
2.13 "Licensed Products" means (a) Bulk Goods,
and/or (b) Finished Products after being assembled and
packaged with the Printed Materials in accordance with the
Guidelines.
2.14 "Marketing Materials" means marketing,
advertising or promotional materials developed by or for LICENSEE
(or subject to LICENSEE's approval) that promote the sale of the
Licensed Products, including but not limited to, television, radio
and on-line advertising, point-of-sale materials (e.g., posters,
counter-cards), package advertising, print media and all audio or
video content other than the Game that is to be included on the
Game Disc.
2.15 "NDA" means the non-disclosure agreement related
to Wii™ previously entered into between NINTENDO and/or NOA
and LICENSEE.
2.16 "NOA" means NCL's subsidiary, Nintendo of
America Inc. of Redmond, Washington, USA.
2.17 "Notice" means any notice permitted or required
under this Agreement. All Notices shall be sufficiently given when
(a) personally served or delivered, or (b) transmitted by
facsimile, with an original sent concurrently by mail, or
(c) deposited, carriage prepaid, with a guaranteed air courier
service, in each case addressed as stated herein, or addressed to
such other person or address either party may designate in a
Notice, or (d) transmitted by e-mail with an express written
acknowledgement of receipt sent personally by or on behalf of the
recipient (which shall include any automated reply). Notice shall
be deemed effective upon the earlier of actual receipt or two (2)
business days after transmittal, provided, however, any Notice
received after the recipient's normal business hours will be deemed
received on the next business day.
2.18 "Price Schedule" means the then-current version
of NINTENDO's schedule of purchase prices and minimum order
quantities for the Finished Products and the Bulk Goods. The Price
Schedule has been provided to LICENSEE independent of this
Agreement and may be changed or updated from time to time without
notice, and the version current from time to time will be available
on request from NINTENDO.
2.19 "Printed Materials" means title page,
instruction booklet, precaution booklet, and optional printed
materials.
2.20 "Promotional Disc(s)" means custom optical discs
compatible with Wii™ that incorporate select game promotional
or supplemental materials, as may be specified or permitted in the
Guidelines.
2.21 "Proprietary Rights" means any rights or
applications for rights owned, licensed or otherwise held in
patents, patent applications, utility models, registered design
rights, unregistered design rights, trademarks, service marks,
copyrights, and neighboring rights, semiconductor chip layouts or
masks, database rights, trade secrets, trade dress, get up, moral
rights and publicity rights, together with all inventions,
discoveries, ideas, know-how, data, information, processes,
methods, procedures, formulas, drawings and designs, computer
programs, software source code and object code, and all amendments,
modifications, and improvements thereto for which such patents,
patent applications, utility models, registered design rights,
unregistered design rights, trademarks, service marks, copyrights,
and neighboring rights, semiconductor chip layouts or masks,
database rights, trade secrets, trade dress, get up, moral rights
or publicity rights may exist or may be sought and obtained in the
future.
2.22 "Rebate Program" means any then-current version
of NINTENDO's optional rebate program, establishing select terms
for price rebates under this Agreement.
2.23 "Reverse Engineer(ing)" means, without
limitation, (a) the x-ray, electronic scanning or physical or
chemical stripping of semiconductor components, (b) the
disassembly, decompilation, decryption or simulation of object code
or executable code, or (c) any other technique designed to
extract source code or facilitate the duplication of a program or
product.
2.24 "Security Technology" means the highly
proprietary security features of the Wii™ and the Licensed
Products to minimize the risk of unlawful copying and other
unauthorized or unsafe usage, including, without limitation, any
security signature, bios, data scrambling, password, hardware
security apparatus, watermark, hologram, encryption, digital rights
management system, copyright management information system,
proprietary manufacturing process or any feature which obstructs
piracy, limits unlawful, unsafe or unauthorized use, or facilitates
or limits compatibility with other hardware, software, accessories
or peripherals, or with respect to a video game system other than
the Wii™, or limits distribution outside of the
Territory.
2.25 "Sole License" means a license under which only
the licensor and a single licensee can utilize the subject matter
of the license.
2.26 "Term" means three (3) years from the Effective
Date.
2.27 "Territory" means any and all countries within
the European Economic Area; namely Austria, Belgium, Bulgaria,
Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein,
Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the
United Kingdom. The Territory shall also include Australia, New
Zealand, Russia, Switzerland and Turkey. NINTENDO may add
additional countries to the Territory upon written notice to
LICENSEE.
2.28 "TM" means trademark of NINTENDO, whether
registered or not.
2.29 "Wii Network Services" means and includes the
Wii Shop Channel Services, Wii™Connect24, and any related
services and material delivered to a consumer's Wii™ console
over the Internet.
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3.
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GRANT OF LICENSE; LICENSEE
RESTRICTIONS
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3.1
Limited License Grant
. For the Term and for the
Territory, NINTENDO grants to LICENSEE a nonexclusive,
nontransferable, limited license to use the Intellectual Property
Rights, for the purpose of and to the extent necessary, to develop
(or have developed on LICENSEE's behalf) Games for manufacture,
advertising, marketing and sale by LICENSEE as Licensed Products,
subject to the terms and conditions of this Agreement. This license
is royalty-free.
3.2
LICENSEE
Acknowledgement .
LICENSEE's use of the Intellectual Property Rights shall not create
any right, title or interest of LICENSEE therein. LICENSEE is
authorized and permitted to develop Games, and have manufactured,
advertise, market, and sell Licensed Products, only for play on
Wii™ and only in accordance with this Agreement. In the event
that LICENSEE challenges NINTENDO's ownership or the validity of
the Intellectual Property Rights, NINTENDO may terminate this
Agreement without any notice or procedure.
3.3
Restrictions on License
Grant . NINTENDO does not
guarantee that the hardware for the Wii™ system is
distributed throughout the Territory. Moreover, the present limited
license to LICENSEE does not extend to the use of the Intellectual
Property Rights for the following purposes:
(a) grant access to, distribute, transmit or
broadcast a Game by electronic means or by any other means known or
hereafter devised, including, without limitation, by wireless,
cable, fiber optic, telephone lines, microwave, radiowave, computer
or other device network, except (a) as a part of wireless Game
play on and among Wii™ systems, or between Wii™ and
Nintendo DS systems, (b) for the purpose of facilitating Game
development under the terms of this Agreement, or (c) as
otherwise approved in writing by NINTENDO. LICENSEE shall use
reasonable security measures, customary within the high technology
industry, to reduce the risk of unauthorized interception or
retransmission of any Game transmission. No right of retransmission
shall attach to any authorized transmission of a Game;
(b) authorize or permit any online activities
involving a Game, including, without limitation, multiplayer,
peer-to-peer or online play, except as expressly permitted by
NINTENDO in writing;
(c) modify, install or operate a Game on any server
or computing device for the purpose of or resulting in the rental,
lease, loan or other grant of remote access to the Game;
(d) emulate, interoperate, interface or link a Game
for operation or use with any hardware or software platform,
accessory, computer language, computer environment, chip
instruction set, consumer electronics device or device other than
Wii™, the Nintendo DS system, the Development Tools or such
other Nintendo system as NINTENDO may authorize in the
Guidelines;
(e) embed, incorporate, or store a Game in any
media or format except the optical disc format utilized by
Wii™, except as may be necessary as a part of the Game
development process under this Agreement;
(f) design, implement or undertake any process,
procedure, program or act designed to disable, obstruct, circumvent
or otherwise diminish the effectiveness or operation of the
Security Technology;
(g) utilize the Intellectual Property Rights to
design or develop any interactive video game program, except as
authorized under this Agreement;
(h) manufacture or reproduce a Game developed under
this Agreement, except through NINTENDO; or
(i) Reverse Engineer or assist in Reverse
Engineering all or any part of Wii™, including the hardware,
software (embedded or not) or the Security Technology, except as
specifically permitted under the laws and regulations applicable in
the Territory.
3.4
Development Tools
. NINTENDO and NOA may lease, loan
or sell Development Tools, including any improvements made by
NINTENDO or NOA from time to time, to LICENSEE to assist in the
development of Games under this Agreement on such terms as may be
agreed between the parties. Ownership and use of any Development
Tools, whether provided by NINTENDO or NOA, prior to or during the
Term hereof, shall be subject to the terms of this Agreement and
any separate license or purchase agreement required by NINTENDO or
any third party licensing the Development Tools. LICENSEE
acknowledges the respective interests of NINTENDO, and in the case
of third-party Development Tools, such third parties, in and to the
Proprietary Rights associated with the Development Tools.
LICENSEE's use of the Development Tools shall not create any right,
title or interest of LICENSEE therein. Any license to LICENSEE to
use the Development Tools does not extend to: (a) use of the
Development Tools for any purpose except the design and development
of Games under this Agreement, (b) reproduction or creation of
derivatives of the Development Tools, except in association with
the development of Games under this Agreement, (c) Reverse
Engineering of the Development Tools (except as specifically
permitted under the laws and/or regulations applicable in the
Territory), or (d) selling, leasing, assigning, lending,
licensing, encumbering or otherwise transferring the Development
Tools. Anything developed or derived by LICENSEE as a result of a
study of the performance, design or operation of any Nintendo
Development Tools shall be considered a derivative work of the
Intellectual Property Rights, but may be retained and utilized by
LICENSEE in connection with this Agreement. Unless LICENSEE can
demonstrate that such derivative work has one or more applications
that are independent of and separate from the Intellectual Property
Rights ("Independent Applications"), it shall be deemed to have
granted NINTENDO and NOA an indefinite, worldwide, royalty-free,
transferable and Sole License (including the right to sub-license)
to such derivative work. To the extent that LICENSEE can
demonstrate one or more Independent Applications, LICENSEE shall be
deemed to have granted to NINTENDO and NOA a royalty-free and
transferable non-exclusive License (including the right to
sub-license) in relation to such Independent Applications for the
Term. Anything developed or derived by LICENSEE as a result of a
study of the performance, design or operation of any third-party
Development Tools shall be governed by the terms of the license
agreement applicable to such Development Tools. Notwithstanding any
referral or information provided or posted regarding third-party
Development Tools, NINTENDO and NOA make no representations or
warranties with regard to any such third-party Development Tools.
LICENSEE acquires and utilizes third-party Development Tools at its
own risk.
3.5
Games Developed for Linked Play
on Two Systems . In the
event the Guidelines permit LICENSEE to develop a Game for
simultaneous or linked play on Wii™ and on another Nintendo
video game system, LICENSEE shall be required to acquire and
maintain with NINTENDO such additional licenses as are necessary
for the use of the Proprietary Rights associated with such other
Nintendo video game system.
3.6
In-Game Advertising
. LICENSEE shall not include
advertising or product placements for products or services of third
parties, whether in the Game, as separate content on a Game Disc
(e.g., a trailer), or in the Printed Materials, without NINTENDO's
prior written consent.
3.7
Use of Mii™
Characters . LICENSEE
shall not develop any Game that permits NINTENDO's Mii™
characters to appear in the Game without NINTENDO's prior written
consent.
3.8
Sending Data to
Consumers . LICENSEE
shall not, without the prior written consent of NINTENDO, send any
data, content, messages, advertising, or other communications of
any kind to any consumer's Wii™ console through the
Wii™ Network Services or otherwise.
3.9
Downloadable Content
. If LICENSEE desires to develop
Games or updates/additions of any kind for any Licensed Product, to
be downloaded to consumers through the Wii Network Services, the
terms and conditions of such development shall be separately agreed
in writing between the parties. LICENSEE acknowledges that the
rights granted herein do not include the right to use the
Intellectual Property Rights to develop downloadable
content.
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4.
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SUBMISSION AND APPROVAL OF GAME AND
ARTWORK
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4.1
Submission of a Completed Game to
NINTENDO . Upon
completion of a Game, LICENSEE shall deliver a prototype of the
Game to NINTENDO in a format specified in the Guidelines. Delivery
shall be made in accordance with the methods set forth in the
Guidelines. Each Submission shall include such other information or
documentation deemed necessary by NINTENDO, including, without
limitation, a complete set of written user instructions, a complete
description of any security holes, backdoors, time bombs, cheats,
"easter eggs" or other hidden features or characters in the Game
and a complete screen text script. LICENSEE must establish that the
Game and any other content included on the Game Disc complies with
the guidelines of the Pan European Game Information System (PEGI),
the Unterhaltungssoftware Selbstkontrolle (USK), the Office of Film
and Literature Classification (OFLC), or any other national or
regional game rating system that NINTENDO may accept, as
applicable. LICENSEE shall be responsible for the submission of the
Game to the appropriate national or regional game rating
organization and shall provide NINTENDO with a statement or
certificate in writing from the relevant organization, confirming
the rating for the Game. Where any such game has been rated as
being suitable only for players aged 18 and over (or an equivalent
rating), LICENSEE must submit a certificate in writing that
confirms the game is rated as no higher than "M" (Mature) by the
Entertainment Software Rating Board (ESRB) of the U.S. In addition,
NINTENDO reserves the right to require LICENSEE to provide NINTENDO
with *** .
***Confidential
treatment requested.
4.2
Testing of a Completed
Game . Upon submission of
a completed Game, NINTENDO shall promptly test the Game with regard
to its technical compatibility with, and error-free operation on,
Wii™ utilizing the lot check process. Within a reasonable
period of time after receipt, NINTENDO shall approve or disapprove
such Game. If a Game is disapproved, NINTENDO shall specify in
writing the reasons for such disapproval and state what corrections
are necessary. After making the necessary corrections, LICENSEE
shall submit a revised Game to NINTENDO for testing. NINTENDO shall
not unreasonably withhold or delay its approval of any Game.
Neither the testing nor approval of a Game by NINTENDO shall
relieve LICENSEE of its sole responsibility for the development,
quality and operation of the Game or in any way create any warranty
by NINTENDO relating to any Licensed Product.
4.3
Production of Check
Discs . By submission of
a completed Game to NINTENDO in accordance with Section 4.1,
LICENSEE authorizes NINTENDO to proceed with production of Check
Discs for such Game. If NINTENDO approves a Game, it shall
promptly, and without further notification to or instruction from
LICENSEE, submit such Game for the production of Check Discs.
Unless otherwise advised by LICENSEE, following production of the
Check Discs, NINTENDO shall deliver to LICENSEE approximately ten
(10) Check Discs for content verification, testing and final
approval by LICENSEE.
4.4
Approval or Disapproval of Check
Discs by LICENSEE . If,
after review and testing, LICENSEE approves the Check Discs, it
shall promptly transmit to NINTENDO a signed authorization for
production in the form specified in the Guidelines. If LICENSEE
does not approve the sample Check Discs for any reason, LICENSEE
shall advise NINTENDO in writing and may, after undertaking any
necessary changes or corrections, resubmit the Game to NINTENDO for
approval in accordance with the procedures set forth in this
Section 4. The absence of a signed authorization form from
LICENSEE within five (5) days after delivery of the Check Discs to
LICENSEE shall be deemed disapproval of such Check Discs.
Production of any order for Finished Goods or Bulk Goods shall not
proceed without LICENSEE's signed authorization.
4.5
Cost of Check Discs and Disc
Stamper . If LICENSEE:
(a) disapproves the Check Discs for any reason (except if the
disapproval is due to defects in or failure of the Check Discs due
to NINTENDO's act, error or omission); (b) fails to order the
minimum order quantity of any Game approved by NINTENDO within six
(6) months after the date the Game was first approved by NINTENDO;
or (c) submits a revised version of the Game to NINTENDO after
production of such Game has commenced, LICENSEE shall reimburse
NINTENDO (or its designee) for the reasonable estimated cost of the
production of the Check Discs, including the cost of the disc
stamper. The payment will be due (i) thirty (30) days after
NINTENDO's written notification to LICENSEE of the Check Disc fee
due NINTENDO because of LICENSEE's failure to approve such Check
Disc; (ii) six (6) months after the date the Game was first
approved by NINTENDO; or (iii) upon the subsequent submission
by LICENSEE of a revised version of the Game to NINTENDO, as the
case may be.
4.6
Submission and Approval of
Artwork . Prior to
submitting a completed Game to NINTENDO under Section 4.1,
LICENSEE shall submit to NINTENDO all Artwork for the proposed
Licensed Product. Within ten (10) business days of receipt,
NINTENDO shall approve or disapprove the Artwork. If any Artwork is
disapproved, NINTENDO shall specify in writing the reasons for such
disapproval and state what corrections or improvements are
necessary. After making the necessary corrections or improvements,
LICENSEE shall submit revised Artwork to NINTENDO for approval.
NINTENDO shall not unreasonably withhold or delay its approval of
any Artwork. The approval of the Artwork by NINTENDO shall not
relieve LICENSEE of its sole responsibility for the development and
quality of the Artwork or in any way create any warranty for the
Artwork or the Licensed Product by NINTENDO. All Artwork must be
approved prior to submitting an order for the Bulk Goods or
Finished Products, and LICENSEE shall not produce any Printed
Materials for commercial distribution until such Artwork or
Finished Products has been approved by NINTENDO.
4.7
Artwork for Bulk Goods
. If LICENSEE intends to submit an
order for Bulk Goods, all Artwork and other materials to be
included with the Licensed Product shall be submitted to NINTENDO
in accordance with Section 4.6 herein. No Printed Materials shall
be produced by LICENSEE until such Artwork has been approved by
NINTENDO.
4.8
Promotional Discs
. In the event NINTENDO issues
Guidelines in the future that permit LICENSEE to develop and
distribute Promotional Discs, either separately or as a part of the
Licensed Product, the content and specifications of such
Promotional Disc shall be subject to all of the terms and
conditions of this Agreement, including, without limitation, the
Guidelines, the Price Schedule and the submission and approval
procedures provided for in this Section 4.
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ORDER PROCESS, PURCHASE PRICE, PAYMENT AND
DELIVERY
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5.1
Submission of Orders by
LICENSEE . After receipt
of NINTENDO's approval for a Game and Artwork, LICENSEE may at any
time submit a written purchase order to NINTENDO for any approved
Licensed Product title. The purchase order shall specify whether it
is for Finished Products or Bulk Goods. The terms and conditions of
this Agreement shall control over any contrary or additional terms
of such purchase order or any other written documentation or verbal
instruction from LICENSEE. All orders shall be subject to
acceptance by NINTENDO or its designee.
5.2
Purchase Price and Minimum Order
Quantities . The purchase
price and minimum order quantities for Finished Products and Bulk
Goods shall be set forth in NINTENDO's then-current Price Schedule.
Unless otherwise specifically provided for, the purchase price
includes the cost of manufacturing a single Game Disc. No taxes,
duties, import fees or other tariffs related to the development,
manufacture, import, marketing or sale of the Licensed Products
(except for taxes imposed on NINTENDO's income) are included in the
purchase price and all such taxes are the responsibility of
LICENSEE. The Price Schedule is subject to change by NINTENDO at
any time without Notice, provided however, that any price increase
shall be applicable only to purchase orders submitted, paid for,
and accepted by NINTENDO after the date of the price
increase.
5.3
Payment . Upon placement of an order with NINTENDO,
LICENSEE shall pay the full purchase price either (a) by
tender of an irrevocable letter of credit in favor of NINTENDO (or
its designee) and payable at sight, issued by a bank acceptable to
NINTENDO and confirmed, if requested by NINTENDO, at LICENSEE's
expense, or (b) in cash, by wire transfer to an account
designated by NINTENDO. All letters of credit shall comply with
NINTENDO's written instructions and all associated banking charges
shall be for LICENSEE's account.
5.4 Delivery of Licensed Products. NINTENDO shall
deliver the Finished Products and Bulk Goods ordered by LICENSEE to
LICENSEE FOB Japan, CIP European Destination or ex-
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