Chern Ann
Only when they're green
http://www.lounge.belloflostsouls.net/showthread.php?t=13751
In a nutshell, Chapterhouse is demanding more information regarding the alleged copyright infringments.
Very interesting thread, and in my opinion very good analysis by weeble. GW may have to fight this to conclusion on the basis of a few products infringing, rather than Chapterhouse Studios' entire product line.
However, the main point of the analysis, which I agree with, is that GW was not expecting a fight against an opponent with an unlimited legal fund (which Chapterhouse has secured); it seems suggestive that this is the case due to the vague and overreaching nature of the original claim... i.e. under normal circumstances, an opening move like this strives to drive up legal costs by forcing a lot of back and forth to wring out the details of the complaint, which is only a good strategy if you have more money for lawyers than your opponent. This doesn't appear to be the case anymore.
So, due to this unexpected turn of events, GW is in quite a bad position; its PR / legal team has created a significant amount of FUD ("Fear, Uncertainty, Doubt") over the years around its IP, which is an asset in itself and probably cost a lot to build. If I were a current investor I would be concerned about:
1. How the company is spending cash on this litigation, which frankly has very little upside beyond maintaining the "FUD Cloak", rather than building traditional real value (such as new miniatures, tools etc), especially when it does not have a strong cash position;
2. What happens if it loses, or secures only a Pyrrhic victory (e.g. Chapterhouse is only found liable for some minor trademark infringements, which it has already corrected). -> This will open the floodgates, and without sufficient cash to sue everyone it will be a major problem.
In their position, a secret settlement that basically has them dropping everything quietly would work out the best, although that depends on whether Chapterhouse would accept it. Even if Chapterhouse Studios goes out of business, since they were never really a competitor there is absolutely no upside to this case beyond patching the FUD Cloak; GW should escape from this situation if they can.
In a nutshell, Chapterhouse is demanding more information regarding the alleged copyright infringments.
Very interesting thread, and in my opinion very good analysis by weeble. GW may have to fight this to conclusion on the basis of a few products infringing, rather than Chapterhouse Studios' entire product line.
However, the main point of the analysis, which I agree with, is that GW was not expecting a fight against an opponent with an unlimited legal fund (which Chapterhouse has secured); it seems suggestive that this is the case due to the vague and overreaching nature of the original claim... i.e. under normal circumstances, an opening move like this strives to drive up legal costs by forcing a lot of back and forth to wring out the details of the complaint, which is only a good strategy if you have more money for lawyers than your opponent. This doesn't appear to be the case anymore.
So, due to this unexpected turn of events, GW is in quite a bad position; its PR / legal team has created a significant amount of FUD ("Fear, Uncertainty, Doubt") over the years around its IP, which is an asset in itself and probably cost a lot to build. If I were a current investor I would be concerned about:
1. How the company is spending cash on this litigation, which frankly has very little upside beyond maintaining the "FUD Cloak", rather than building traditional real value (such as new miniatures, tools etc), especially when it does not have a strong cash position;
2. What happens if it loses, or secures only a Pyrrhic victory (e.g. Chapterhouse is only found liable for some minor trademark infringements, which it has already corrected). -> This will open the floodgates, and without sufficient cash to sue everyone it will be a major problem.
In their position, a secret settlement that basically has them dropping everything quietly would work out the best, although that depends on whether Chapterhouse would accept it. Even if Chapterhouse Studios goes out of business, since they were never really a competitor there is absolutely no upside to this case beyond patching the FUD Cloak; GW should escape from this situation if they can.
