Exhibit 10.60
This Agreement
is entered into on 27 September 2005
by and between
SONY COMPUTER ENTERTAINMENT
EUROPE LIMITED
of 30 Golden Square, London W1F
9LD
(hereinafter referred to as
“SCEE”)
- and -
ACTIVISION UK
LIMITED
of Parliament House, St. Laurence
Way, Slough, Berks, SL1 2BW
(hereinafter referred to as
“Publisher”)
PUBLISHER AUTHORISATION #:
056
Recitals
(A)
SCEE, its parent company Sony
Computer Entertainment Inc., and/or certain of their affiliates and
companies within the group of companies of which any of them form
part (hereinafter jointly and severally referred to as
“Sony”) have developed, and are licensing core
components of, a computer entertainment system known and
hereinafter referred to as “ PlayStation®
Portable ” or “ PSP ”, and are the
owners of, or have the right to grant licences of, certain
proprietary information and intellectual property rights pertaining
to PSP.
(B)
Publisher desires to be granted a
non-exclusive licence, on a product by product basis, to market,
distribute and sell Licensed Products (as defined below), and for
such Licensed Products and associated materials to be manufactured
by an authorised manufacturing facility licensed by SCEE, on the
terms and subject to the conditions set forth in this
Agreement.
(C)
SCEE is willing, on the terms and
subject to the conditions of this Agreement, to grant Publisher the
desired non-exclusive licences.
In consideration of the
undertakings, representations and warranties given herein, and of
other good and valuable consideration the receipt and sufficiency
of which is acknowledged, Publisher and SCEE agree as
follows:
1.
Definitions
1.1
“Licensed Products”
means the PSP format Software games listed in Schedule 3, and such
further PSP format Software games as shall, from time to time,
achieve unconditional pass status under SCEE’s product
assessment process, in unique UMD format software discs and
shells.
1.2
“Licensed Territory”
means the countries specified in Schedule 1.
1.3
“Sony Intellectual Property
Rights” means all worldwide current and future rights in or
in relation to the Licensed Trademarks, any patents, inventions,
designs, copyrights, rights in databases, trademarks, service
marks, trade names (including any goodwill associated with any
trademarks
[***]
The portions of this document marked with three asterisks represent
confidential portions omitted and filed separately with the
Securities and Exchange Commission.
1
or names), semi-conductor topography
rights, Confidential Information of Sony, rights in technical
information and know-how, rights in the nature of unfair
competition rights and rights to sue for passing off and all other
proprietary or intellectual property rights (and the equivalents of
each of the foregoing under the laws of any jurisdiction) of Sony
pertaining to Sony Materials and/or PSP (including, without
limitation, all registrations, applications to register and rights
to apply for registration of the same) for their full term
including all renewals and extensions thereof.
1.4
“Specifications” means
such specifications relating to the content and/or manufacture of
Licensed Products, Printed Materials, Advertising Materials and/or
related matters or materials as may from time to time be
promulgated by Sony, which specifications (and/or procedures
relating to the testing or verification of all such materials for
conformity to the Specifications and/or relating to the ordering
and manufacture of Licensed Products and associated materials) are
incorporated into and form part of this Agreement and may be
amended from time to time upon reasonable notice to
Publisher.
1.5
“Licensed Trademarks”
means the “PS” family logo and PlayStation Portable and
“PSP” logotypes and such other trademarks, service
marks, trade dress, logos and other icons or indicia as shall be
specified in the Specifications or otherwise designated by SCEE
from time to time. SCEE may amend such Licensed Trademarks upon
reasonable notice to Publisher.
Publisher is not authorised to use
the PlayStation, PSone, PlayStation 2, “PS2”,
playstation.com or psp.com logos and/or logotypes or the
PlayStation Shapes devices, other than as expressly permitted by
separate agreement. Nothing contained in this Agreement shall in
any way grant Publisher the right to use the trademark
“Sony” in any manner as (or as part of) a trademark,
trade name, service mark or logo or otherwise howsoever.
1.6
“Advertising Materials”
means all advertising, merchandising, promotional and display
materials of or concerning the Licensed Products.
1.7
“Printed Materials”
means all artwork and mechanicals to be set forth on the Licensed
Product itself, and on the box (or other) packaging for the
Licensed Product and all instruction manuals, inlays, inserts,
stickers and other user information and/or materials to be inserted
in or affixed to such box and/or packaging.
1.8
“Manufactured Materials”
means all units of the Licensed Products, of the Printed Materials
to be set forth on the Licensed Products themselves and of the
boxes for such Licensed Products (which expression shall include
any alternative form of container for Licensed Products
subsequently introduced by SCEE).
1.9
“Licensed Developer
Software” means Licensed Developer’s application source
code and data (including audio and visual material) developed by
Licensed Developer in accordance with its LDAP which, when
integrated with any software (whether in object code or source code
form) provided by SCEE, creates PSP format Software.
1.10
“Licensed Developer”
means Publisher or such other third party as shall have developed
Licensed Developer Software and PSP format Software pursuant to a
then current LDAP.
1.11
“LDAP” means the PSP
Licensed Developer Agreement between Licensed Developer of the
applicable PSP format Software and SCEE (or an equivalent such
agreement between Licensed Developer and an Affiliate of
SCEE).
1.12
‘‘Article 6” means
Article 6 of Council Directive 91/250/EEC of 14 May 1991 on the
legal protection of computer programs.
2
1.13
“Affiliate of SCEE”
means, as applicable, either Sony Computer Entertainment Inc in
Japan, Sony Computer Entertainment America Inc in the USA, Sony
Computer Entertainment Korea or such other Sony Computer
Entertainment entity as may be established by Sony from time to
time.
1.14
“PSP format Software”
means Publisher’s object code software, which includes
Licensed Developer Software and any software (whether in object
code or source code form) which is provided by SCEE and intended to
be combined with Licensed Developer Software for execution on PSP
and has the ability to communicate with the software resident in
PSP.
1.15
“Sony Materials” means
any hardware, data, object code, source code, documentation (or any
part(s) of any of the foregoing) and related peripheral items
provided to the Licensed Developer of any PSP format Software
pursuant to the LDAP applicable for such PSP format
Software.
1.16
“Confidential Information of
Sony” means the content and/or substance of this Agreement
(including the Schedules hereto and the Specifications) and any and
all confidential and/or proprietary information, documents and
related materials of whatever nature (including, without
limitation, all information made available to Publisher on
www.publisher.scee.net or other Sony websites or otherwise and all
processes, hardware, software, inventions, trade secrets, ideas,
designs, research, know-how, business methods, production plans and
marketing plans) concerning PSP and related products, developed or
owned by, licensed to or under the control of Sony and, without
limitation, information otherwise related to Sony’s
technology, know-how, products, potential products, research
projects, trials, promotional advertising and marketing plans,
schedules and budgets, licensing terms and pricing, customer lists
and details, commercial relationships or negotiations, services,
financial models and other business information, whether relating
to PSP or otherwise including relating to Sony’s
“PlayStation” and “PlayStation 2”
predecessor video and computer entertainment system(s), disclosed
by whatever means, whether directly or indirectly, by or on behalf
of Sony to Publisher at any time, whether disclosed orally, in
writing or in machine-readable or other form, or otherwise
discovered by Publisher (or any parent company, subsidiary or
affiliate of Publisher) as a result of any information or materials
provided (whether directly or indirectly) by or on behalf of Sony
to Publisher (or any parent company, subsidiary or affiliate of
Publisher).
1.17
“UMD” means Universal
Media Disc, a proprietary disc format developed by or on behalf of
Sony.
1.18
“Third Party Intellectual
Property Rights” means all worldwide current and future
rights in or in relation to any patents, inventions, designs,
copyrights, rights in databases, trademarks, service marks, trade
names (including any goodwill associated with any trademarks or
names), semi-conductor topography rights, trade secret rights,
technical information and know-how, rights in the nature of unfair
competition rights and rights to sue for passing off and all other
proprietary or intellectual property rights (and the equivalents of
each of the foregoing under the laws of any jurisdiction) of any
third party other than Publisher or Sony (including, without
limitation, all registrations, applications to register and rights
to apply for registrations of the same) for their full term
including all renewals and extensions thereof.
1.19
“Term” means, subject to
Clause 2.2, the period from [***] and continuing thereafter unless
and until terminated by not less than [***] notice on either side
given to expire on such date or any subsequent [***].
1.20
“CNDA (PSP)” means the
Confidentiality & Non-Disclosure (or similar) Agreement between
Publisher and SCEE or an Affiliate of SCEE relating to PSP and to
Confidential Information of Sony and/or of Publisher
thereunder.
1.21
“Confidential Information of
Publisher” means any and all confidential and/or proprietary
information, documents and related materials of whatever nature
(including, without limitation,
[***]
The portions of this document marked with three asterisks represent
confidential portions omitted and filed separately with the
Securities and Exchange Commission.
3
all processes, hardware, software,
inventions, trade secrets, ideas, designs, research, know-how,
business methods, production plans and marketing plans) concerning
PSP format Software developed or owned by, licensed to or under the
control of Publisher and, without limitation, information otherwise
related to Publisher’s technology, know-how, products,
potential products, research projects, trials, promotional
advertising and marketing plans, schedules and budgets, licensing
terms and pricing, customer lists and details, commercial
relationships or negotiations, services, financial models and other
business information, whether relating to PSP format Software or
otherwise, disclosed by whatever means, whether directly or
indirectly, by or on behalf of Publisher to SCEE at any time,
whether disclosed orally, in writing or in machine-readable or
other form, or otherwise discovered by SCEE as a result of any
information or materials provided (whether directly or indirectly)
by or on behalf of Publisher to SCEE, which information is
designated by Publisher as, or becomes known to SCEE under
circumstances indicating that such information is, confidential or
proprietary.
2.
Grant of
Licence
2.1
SCEE hereby grants to Publisher, and
Publisher hereby accepts, within the Licensed Territory only and
under the Sony Intellectual Property Rights, a non-exclusive
non-transferable licence, without the right to sub-license (except
as specifically provided herein), to publish Licensed Products in
such genres or categories as SCEE shall from time to time designate
in the Specifications, and the right and obligation to use the
Licensed Trademarks, in the form and manner prescribed in the
Specifications, strictly, only and directly in connection with such
publication.
2.2
For these purposes, to
“publish” shall mean any or all of the following: (i)
produce Advertising Materials and Printed Materials; (ii) to issue
to SCEE purchase orders for Manufactured Materials as prescribed in
Clause 6; (iii) to market and advertise Licensed Products; (iv) to
distribute and sell Licensed Products (and to authorise others so
to do) save that, until [***], such rights shall be limited to the
distribution and sale of Licensed Products to trade only; and (iv)
from [***], to sub-license to end users the right to use Licensed
Products for non-commercial purposes only and not for public
performance. Failure to take all measures necessary to ensure that
Licensed Products are not made available to consumers prior to
[***] will be a material breach of this Agreement not capable of
remedy and an infringement of the Licensed Trademarks.
3.
Limitations
3.1
Publisher shall publish Licensed
Products only if based on Licensed Developer Software developed by
a Licensed Developer strictly in accordance with all the terms and
conditions of such Licensed Developer’s LDAP and shall not,
subject to Article 6, publish or attempt to publish any other
software whatsoever intended for or capable of execution on
PSP. The onus of evidencing that each Licensed Product
satisfies the foregoing criteria shall rest on Publisher and SCEE
reserves the right to require Publisher to furnish evidence
satisfactory to SCEE that the foregoing criteria are
satisfied.
3.2
Publisher shall not publish PSP
format Software or Licensed Products outside the Licensed Territory
unless and until Publisher shall be authorised and licensed so to
do pursuant to a current license agreement with the applicable
Affiliate of SCEE. Further, Publisher shall not sub-publish PSP
format Software or Licensed Products through a third party either
within or outside the Licensed Territory unless and until such
sub-publisher shall be authorised and licensed so to do
[***]
The portions of this document marked with three asterisks represent
confidential portions omitted and filed separately with the
Securities and Exchange Commission.
4
either pursuant to a current PSP
Licensed Publisher Agreement with SCEE or a current PSP licence
agreement with the applicable Affiliate of SCEE.
3.3
The licence granted in this
Agreement extends only to the publication, marketing, distribution
and sale of Licensed Products in such formats as may be designated
by SCEE. Without limiting the generality of the foregoing and
except as otherwise provided herein, Publisher and, if applicable,
its sub-publishers shall at all times and in all territories be
strictly prohibited from undertaking or authorising the
distribution or transmission of PSP format Software or Licensed
Products through electronic means or any other means now known or
hereafter devised, including without limitation, via wireless,
cable, fibre optic means, telephone lines, microwave and/or radio
waves, or over a network of interconnected computers or other
devices. Notwithstanding this limitation, Publisher may (i)
authorise the sharing of insubstantial parts of PSP format Software
between PSPs (so called “game sharing”) and ad hoc
playing of a PSP format Software game between PSPs and, in each
case by the use of the wireless features of the PSP and not via the
internet or other publicly available network; (ii) undertake or
authorise the distribution or transmission of PSP format Software,
or user-contributed content for use with PSP format Software, over
the internet or other publicly available network, and the playing
of PSP format Software games between players via the internet or
other publicly available network strictly for non-commercial
purposes (so that no rights are granted under this Agreement where
Publisher receives any direct or indirect income from such
downloads or services including, without limitation, one-off
payments, subscriptions, revenue sharing, advertising revenue or a
combination of all or any of the same); and (iii) electronically
transmit PSP format Software from site to site, or from machine to
machine over a computer network, for the sole purpose of
facilitating development; provided that no right of retransmission
shall attach to any such transmission, and provided further that
Publisher shall use reasonable security measures customary within
the high technology industry to reduce the risk of unauthorised
interception or retransmission of such transmissions.
3.4
Subject only to Article 6, Publisher
and, if applicable, its sub-publishers shall at all times be
strictly prohibited from disassembling or decompiling software,
peeling semiconductor components or otherwise reverse engineering
or attempting to reverse engineer or derive source code or create
derivative works from PSP format Software, from permitting or
encouraging any third party so to do, and from acquiring or using
any materials from any third party who does so. Publisher shall in
all cases be primarily liable for the payment of Platform Charge to
the applicable authorised manufacturing facility licensed by SCEE
in accordance with Clause 7 hereof in respect of any product
published by Publisher, or, if applicable, any of its sub-
publishers, which utilises Sony Materials and/or Sony Intellectual
Property Rights and/or, subject to Council Directive 91/250/EEC,
Confidential Information of Sony. The onus of evidencing that any
such product is not so published shall rest on Publisher and SCEE
reserves the right to require Publisher to furnish evidence
satisfactory to SCEE that the applicable of the foregoing criteria
are satisfied.
3.5
Publisher shall inform all such
sub-publishers of the obligations imposed by this Agreement and
shall obtain their commitment to abide by the same.
3.6
Publisher acknowledges and agrees
that; (i) no rights are granted under this Agreement in respect of
non-game products or products which contain significant elements
of, or are a hybrid with, audio or video profile products for UMDs;
(ii) no Licensed Product shall, except as specifically authorised
in advance writing by SCEE in each case, incorporate (in whole or
in part) more than 1 (one) game product; and (iii) it may publish,
market, distribute, sell or otherwise dispose of Licensed Products
only on a standalone basis, and may not do the same in conjunction
or bundled
5
with any other goods, products or
services except as specifically authorised in advance in writing by
SCEE in each case.
3.7
Any breach of the provisions of this
Clause 3 shall be a material breach of this Agreement not capable
of remedy.
4.
Reservations
4.1
This Agreement does not grant any
right or licence, under any Sony Intellectual Property Rights or
otherwise, except as expressly provided herein, and no other right
or licence is to be implied by or inferred from any provision of
this Agreement or the conduct of the parties hereunder. Subject
only to the rights of Publisher under this Agreement, all right,
title and interest in and to the Sony Materials and the Sony
Intellectual Property Rights are and shall be the exclusive
property of Sony, and Publisher shall not make use of, or do or
cause to be done any act or thing contesting or in any way
impairing or tending to impair any of Sony’s right, title or
interest in or to, any of the Sony Materials, Sony Intellectual
Property Rights and PSP except as authorised by and in compliance
with the provisions of this Agreement or as may otherwise expressly
be authorised in writing by Sony; provided however that the
foregoing shall not be taken to preclude Publisher from challenging
the validity of any Sony Intellectual Property Rights. No right,
licence or privilege has been granted to Publisher hereunder
concerning the development of any collateral product or other use
or purpose of any kind whatsoever which displays or depicts any of
the Licensed Trademarks. No promotional or novelty items or premium
products (including, by way of illustration but without limitation,
T-shirts, posters, stickers, etc) displaying or depicting any of
the Licensed Trademarks shall be developed, manufactured, marketed,
sold and/or distributed by, with the authority of or on behalf of,
Publisher without the prior written consent and authorisation of
SCEE in each case.
4.2
The Licensed Trademarks and the
goodwill associated therewith are and shall be the exclusive
property of Sony. Nothing herein shall give Publisher any right,
title or interest in or to any of the Licensed Trademarks, other
than the non-exclusive licence and privilege to display and use the
Licensed Trademarks solely in accordance with the provisions of
this Agreement. Publisher shall not do or cause to be done any act
or thing contesting or in any way impairing or tending to impair
any of Sony’s right, title or interest in or to any of the
Licensed Trademarks, nor shall Publisher register or apply to
register any trademark in its own name or in the name of any other
person or entity, or obtain or seek to obtain rights to employ
internet domain name(s) or address(es), which is or are similar to
or is or are likely to be confused with any of the Licensed
Trademarks; provided however that the foregoing shall not be taken
to preclude Publisher from challenging the validity of any Licensed
Trademarks.
4.3
Publisher or Licensed Developer (as
applicable) retains all right, title and interest in and to
Licensed Developer Software, including Licensed Developer’s
intellectual property rights therein and any names or other
designations used as titles therefor, and nothing in this Agreement
shall be construed to restrict the right of Licensed Developer to
develop and/or the right of Publisher to publish products
incorporating Licensed Developer Software alone (which do not
contain or rely on Sony Materials and/or Sony Intellectual Property
Rights and/or, subject to Council Directive 91/250/EEC,
Confidential Information of Sony), and/or under such names or other
designations, for any hardware platform or service other than
PSP.
4.4
Subject to the proviso to Clauses
4.1 and 4.2 above, Publisher shall, at the expense of SCEE, take
all such steps as SCEE may reasonably require, including the
execution of licences and obtaining registrations, to assist SCEE
in maintaining the validity and enforceability of Sony Intellectual
Property Rights.
6
4.5
Without prejudice to Clause 11,
Publisher or SCEE (as applicable) shall promptly and fully notify
the other in writing in the event that it discovers or otherwise
becomes aware of any actual, threatened or suspected infringement
of, or challenge to, any of the intellectual property or trademark
rights of the other embodied in any of the Licensed Products, and
of any claim of infringement or alleged infringement by the other
of any Third Party Intellectual Property Rights, and shall at the
request and expense of the other do all such things as may
reasonably be required to assist the other in taking or resisting
any proceedings in relation to any such infringement or
claim.
5.
Quality
Standards
5.1
Each Licensed Product, including
without limitation the title and content thereof, and/or
Publisher’s use of any of the Licensed Trademarks, shall be
required to conform to the Specifications. Testing or verification
for conformity to the Specifications shall be conducted by SCEE or,
at Publisher’s election, by an independent external testing
service (if and when such service becomes available).
5.2
Publisher shall submit for testing
for conformity to the Specifications such information and materials
relating to the PSP format Software for each Licensed Product as
shall be specified in the Specifications. Such Specifications
shall be comparable with the specifications applied by Sony with
respect to its own PSP format software products. SCEE acknowledges
and agrees that such Specifications shall be of prospective
application only and shall not be applied to any inventory units of
the Licensed Products manufactured prior to, or in the active
process of manufacture at the date of, the promulgation thereof by
SCEE.
5.3
For each Licensed Product, Publisher
shall be responsible, at Publisher’s expense, for the
origination of all Printed Materials, and for the manufacture and
delivery to the manufacturer of such Licensed Product of all
Printed Materials other than those to be set forth on the Licensed
Product itself, all of which Printed Materials shall conform in all
material respects to the Specifications. The Specifications
referred to above shall be comparable with the specifications
applied by Sony with respect to its own PSP format software
products. SCEE acknowledges and agrees that such Specifications
shall be of prospective application only and shall not be applied
to any inventory units of the Licensed Products manufactured prior
to, or in the active process of manufacture at the date of, the
promulgation thereof. All materials to be submitted pursuant to
this Clause 5.3 shall be delivered by such means and in such form
as shall be prescribed in the Specifications and at
Publisher’s sole risk and expense. Publisher undertakes that
the quality of such Printed Materials shall be of the same quality
as that associated with high quality consumer products.
5.4
SCEE (or, where applicable, an
independent external testing service as aforesaid) will test or
verify for conformity to the Specifications (as the case may be)
all materials submitted by Publisher pursuant to Clause 5.2 and
Clause 5.3. Where such testing or verification is conducted by
SCEE, SCEE shall advise Publisher of the results of such testing or
verification within the applicable of the timeframes specified in
the Specifications. Where such testing or verification is conducted
by such independent external testing service, such service shall
advise Publisher of the results of such testing or verification
within timeframes agreed between such service and Publisher (and
SCEE shall have no responsibility or liability whatsoever arising
from a failure by such service to meet such timeframes). If any of
such materials (or any element(s) thereof) fail to conform to the
Specifications, SCEE (or, where applicable, such independent
external testing service) shall specify the reasons for such
failure and state what revisions are required. After making
the required revisions, Publisher may resubmit such materials in
such revised form for re-testing or re-verification by SCEE (or,
where applicable, such independent external testing
7
service). The procedures described
in this Clause 5.4 shall if necessary be repeated until all such
materials for each Licensed Product shall expressly have been
certified as conforming to the Specifications, such certification
to be validly given only if in writing and signed by the duly
authorised representative(s) of SCEE as specified in the
Specifications (or, where applicable, by the duly authorised
representative(s) of such independent external testing service).
SCEE shall have no liability to Publisher for the accuracy or
content (including translations and localisations) of Printed
Materials (except only items required to be included in accordance
with the Specifications) or in respect of costs incurred or
irrevocably committed by Publisher as a result of any failure to
conform to Specifications (even where certified for conformity) or
in relation to, or to the use of, Printed Materials which shall not
have been given a certificate of conformity by SCEE (or, where
applicable, by such independent external testing service). No
production units of any Licensed Product shall be manufactured,
marketed, distributed or sold by, with the authority of or on
behalf of, Publisher unless and until such a certificate of
conformity of such Licensed Product shall first have been given by
SCEE (or, where applicable, by such independent external testing
service). No certificate of conformity from SCEE (or, where
applicable, from such independent external testing service) of any
element of the materials so submitted or resubmitted shall be
deemed a certificate of conformity of any other element of such
materials, nor shall any such certificate of conformity be deemed
to constitute a waiver of any of SCEE’s rights under this
Agreement.
The generality of the foregoing
notwithstanding, in the event that Publisher wishes to contest a
finding by SCEE of non-conformity to the Specifications as an
alternate to making required revisions and resubmissions as above,
or in the event that Publisher wishes to contest the outcome of
SCEE’s product assessment process in relation to any specific
product. Publisher may have recourse to the appeals process
specified in the Specifications.
5.5
Publisher shall not change in any
material respect any of the materials for which a certificate of
conformity shall have been given by SCEE (or, where applicable, by
an independent external testing service) pursuant to Clause 5.4
(or, if applicable, pursuant to Clause 5.6) (or, alternately, which
shall have been held to conform to the Specifications following
recourse by Publisher to the appeals process specified in the
Specifications). If any of the Licensed Products and/or
related materials published by, with the authority of or on behalf
of, Publisher fail to conform to the Specifications and the
materials for which SCEE (or, where applicable, such independent
external testing service) shall from time to time have given a
certificate of conformity, then the provisions of Clause 14.2 shall
apply.
5.6
SCEE reserves the right to require
that pre-production samples of all Advertising Materials shall be
submitted by Publisher to SCEE or, at Publisher’s election,
to an independent external testing service (if and when such
service becomes available), [***] and in accordance with the
procedure specified in the Specifications, for verification for
conformity to the Specifications (including specifically, but
without limitation, in relation to the usage of any of the Licensed
Trademarks), prior to any actual production, use or distribution of
any such items by, with the authority or on behalf of, Publisher.
No such proposed Advertising Materials shall be produced, used or
distributed directly or indirectly by Publisher without first
obtaining a certificate of conformity to the Specifications.
Where such verification is conducted by SCEE, SCEE shall advise
Publisher of the results of such verification within the applicable
of the timeframes specified in the Specifications. Where such
verification is conducted by such independent external testing
service, such service shall advise Publisher of the results of such
verification within timeframes agreed between such service and
Publisher (and SCEE shall have no responsibility or liability
whatsoever arising from a failure by such service to meet such
timeframes). If any such Advertising Materials (or any element(s)
thereof) fail to conform to the Specifications, SCEE (or, where
applicable, such independent external testing service)
shall
[***]
The portions of this document marked with three asterisks represent
confidential portions omitted and filed separately with the
Securities and Exchange Commission.
8
specify the reasons for such failure
and state what revisions are required. After making the required
revisions, Publisher may resubmit such materials in such revised
form for re-verification by SCEE (or, where applicable, by such
independent external testing service). The procedures described in
this Clause 5.6 shall if necessary be repeated until all such
Advertising Materials for each Licensed Product shall expressly
have been certified as conforming to the Specifications, such
certification to be validly given only if in writing and signed by
the duly authorised representative(s) of SCEE as specified in the
Specifications (or, where applicable, by the duly authorised
representative(s) of such independent external testing service).
SCEE shall have no liability to Publisher in respect of costs
incurred or irrevocably committed by Publisher in relation to, or
to the use of, Advertising Materials which shall not have been
given a certificate of conformity by SCEE (or, where applicable, by
such independent external testing service). No certificate of
conformity from SCEE (or, where applicable, from such independent
external testing service) of any element of Advertising Materials
so submitted or resubmitted shall be deemed a certificate of
conformity of any other element of such Advertising Materials, nor
shall any such certificate of conformity be deemed to constitute a
waiver of any of SCEE’s rights under this
Agreement.
The generality of the foregoing
notwithstanding, in the event that Publisher wishes to contest a
finding of non-conformity to the Specifications by SCEE, and as an
alternate to making required revisions and resubmissions as above,
Publisher may have recourse to the appeals process specified in the
Specifications.
Subject in each instance to the
prior written consent of SCEE, Publisher may use such textual
and/or pictorial advertising matter (if any) as may be created by,
with the authority or on behalf of, Sony pertaining to the Sony
Materials and/or to the Licensed Trademarks on such Advertising
Materials as may, in Publisher’s judgement, promote the sale
of Licensed Products within the Licensed Territory. Sony shall have
the right to use Licensed Products and/or other materials relating
to Publisher’s PSP format Software games in any advertising
or promotion for PSP at Sony’s expense, subject to giving
Publisher reasonable prior notice of such advertisement or
promotion. Sony shall confer with Publisher regarding the text of
any such advertisement.
5.7
No Licensed Product may be published
in any country of the Licensed Territory unless the Licensed
Product itself and associated Printed Materials bear a consumer
advisory age rating either: (i) as required by local law; or (ii)
where no such local law obtains, as prescribed under the Pan
European Games Information age rating system (“PEGI”)
promulgated by the Interactive Software Federation of Europe. Each
such rating shall be displayed as prescribed by local law or under
PEGI as the case may be. Publisher shall also conform to local law
or to the requirements of PEGI as the case may be in relation to
the display of consumer advisory age ratings in Advertising
Materials. No Licensed Product, nor any Printed Materials or
Advertising Materials, may bear more than one consumer advisory age
rating.
6.
Manufacture of Licensed
Products & Associated Materials
6.1
Subject only to Article 6, Publisher
acknowledges and agrees that it shall purchase Manufactured
Materials only from an authorised manufacturing facility licensed
by SCEE. SCEE shall have the right, but no obligation, to
subcontract the whole or any part or phase of the production of any
or all of the Manufactured Materials or any part(s)
thereof.
6.2
Promptly following the giving by
SCEE (or, where applicable, by an independent external testing
service as aforesaid) of a certificate of conformity to the
Specifications (or, alternately, a holding of conformity to the
Specifications following recourse by Publisher to the appeals
process specified in the Specifications) for each Licensed Product
pursuant to Clause 5.4, SCEE shall
9
create (from one of the copies of
the finally tested version of the PSP format Software as submitted
by Publisher pursuant to Clause 5.2) an encrypted copy of such PSP
format Software for transmission to the authorised manufacturing
facility licensed by SCEE for the creation of the master UMD Disc
(“Master UMD Disc”) from which all other copies of the
Licensed Product are to be replicated in compliance with the
Specifications effective at the time of replication. Where such
certificate of conformity shall have been given by such an
independent external testing service, then the copy of the finally
tested version of the PSP format Software as submitted by Publisher
pursuant to Clause 5.2 from which the Master UMD Disc is to be
created shall be furnished to SCEE by such service. Publisher will
retain duplicates of all such PSP format Software. SCEE shall not
be liable for loss of or damage to any copies of the PSP format
Software furnished to SCEE hereunder. There will be no technology
exchange between Sony and Publisher under this Agreement. The
encryption and mastering process being of a proprietary and
commercially confidential nature, neither SCEE nor any
manufacturing subcontractor of SCEE will under any circumstances
release any Master UMD Discs or other in-process materials to
Publisher. All such physical materials shall be and remain the sole
property of Sony.
6.3
Publisher shall be solely
responsible for the delivery, direct to an authorised manufacturing
facility licensed by SCEE and in accordance with Clause 6.4, of
[***] of the number of sets of the Printed Materials (other than
those set forth on the applicable Licensed Product itself) required
to fulfil Publisher’s purchase order for Manufactured
Materials of each PSP format Software game, which Printed Materials
shall be in strict compliance with the Specifications. SCEE
shall, at Publisher’s request, give Publisher all reasonable
assistance in arranging the manufacture of Printed Materials to be
used in conjunction with Licensed Products not manufactured in
reliance on Article 6 through SCEE’s authorised manufacturing
facility (if a Sony company), but SCEE shall have no responsibility
with respect to pricing, delivery or any other related matter
whatsoever in connection with such manufacture.
6.4
Subject to the giving by SCEE of a
certificate of conformity to the Specifications (or, alternately, a
holding of conformity following recourse by Publisher to the
appeals process specified in the Specifications) for the applicable
PSP format Software and Printed Materials pursuant to Clause 5, and
to the delivery to an authorised manufacturing facility licensed by
SCEE of the materials to be delivered under Clause 6.3, the
applicable authorised manufacturing facility licensed by SCEE will,
[***] and as applicable, manufacture, assemble, package and deliver
the Manufactured Materials and the Printed Materials in accordance
with the terms and conditions set forth in this Clause 6 and such
other conditions as Publisher and the applicable authorised
manufacturing facility may agree. The delivery of the
materials specified in Clause 6.3 shall be made in accordance with
the timetable for such delivery specified in the
Specifications.
6.5
Publisher shall issue to the
applicable authorised manufacturing facility licensed by SCEE
purchase order(s) via SCEE’s Electronic Order System (or
otherwise as specified by SCEE from time to time) in accordance
with, and in compliance with the timetable specified in, the
Specifications. No such order shall be issued unless and
until all necessary certificates of conformity shall have been
given (or, alternately, there shall have been a holding of
conformity following recourse by Publisher to the appeals process
specified in the Specifications) pursuant to Clause 5. Each such
order shall reference Publisher authorisation number and purchase
order reference number, specify quantities of Licensed Products by
title by pack sku (in multiples of the minimum box shipment advised
from time to time by the authorised manufacturing facility licensed
by SCEE), state requested ex-factory delivery date and all
packaging information together with such other information as SCEE
shall reasonably require and shall be for not less than the
applicable minimum order quantity as specified from time to time by
SCEE or the
[***]
The portions of this document marked with three asterisks represent
confidential portions omitted and filed separately with the
Securities and Exchange Commission.
10
applicable authorised manufacturing
facility licensed by SCEE. All such purchase orders shall be
subject to acceptance by the applicable authorised manufacturing
facility licensed by SCEE (and approval by SCEE), which acceptance
will be advised to Publisher not more than [***] following delivery
in accordance with Clause 6.4 of the materials required to be
delivered under Clauses 6.2 and 6.3. The applicable authorised
manufacturing facility shall use all reasonable endeavours, subject
to available manufacturing capacity, to fulfil Publisher’s
purchase orde