Kohnke Communications has filed a suit against Perpetual Entertainment

Dec 13, 2007 10:24 GMT  ·  By

If there was anybody hoping that things start to calm down for Perpetual Entertainment, it didn't happen. First, there was the announcement made by the developers that Gods & Heroes, their nearly completed MMO was canceled. Second, Star Trek Online, the highly anticipated MMO was announced to turn into a more "casual" game - a declaration that caused mass confusion since Star Trek fans are definitely not the casual type.

Now, things got worse, because they just got sued by Kohnke Communications, an US PR firm, which was hired by them in early 2007. The complaint alleges breach of contract, fraudulent transfer, intentional interference with contract, and fraud on the part of Perpetual and demands charges for damages between $80,000 and $290,000.

To put it short, because numbers are boring, Perpetual is accused of canceling Gods & Heroes without announcing Kohnke, who were still working on the PR campaign. The strangest thing is that, according to the complaints, Perpetual have asked Kohnke to develop additional promotional materials, exactly one day before going public with their G&H cancellation decision.

Kohnke's contract with Perpetual stated that the PR firm would conduct a campaign for Gods & Heroes for $15,000 per month. However, for first seven months, Kohnke would receive $5000 only. Kohnke should have got the withheld $70,000 plus an incentive of up to 400 per cent ($280,000), based upon the number of subscribers 90 days after the game's shipment date. The game's cancellation means that Kohnke will never receive this money. The firm states that Perpetual transferred assets for less than market value, interfering in the contract, resulting in the cancellation of the game which would have earned Kohnke money under the incentive plan. I'm sure everything is crystal clear.

Although Perpetual still has 30 days to file a response to the lawsuit, Star Trek Online's future seems to get a big question mark over its head right now. And bad news is not what the Trekkers would like to hear right now.