Indie Devs’ Open Letter Claims Issues With Lace Mamba

By John Walker on February 11th, 2013 at 8:00 pm.

An open letter has been written by indie developers Amanita Design, Colibri Games and Daedalic Entertainment, reporting some rather worrying claims about UK publisher Lace Mamba. The company, known for picking up digitally distributed indie projects and selling boxed versions, is alleged to have failed to pay and keep to the contracts made with the indies.

In the open letter the developers claim that despite contracts requiring quarterly royalty reports and up-front “minimum guarantees”, the studios haven’t received this money, and all attempts to receive it have been ignored by the publisher. They also state that they discovered Lace Mamba had been distributing the games in territories that hadn’t been agreed. Last year both Colibri and Daedalic terminated their contracts with Lace Mamba, but they say the publisher claimed never to have received the physically delivered and signed for letters, and that their email had been malfunctioning on both the occasions (months apart) that each had emailed the same.

They’re not the first studio to make such accusations against Lace Mamba, with JULIA devs CBE Software having made very similar claims earlier this month. Lace Mamba responded to the claims saying they were untrue.

After an ongoing organised campaign, this year Colibri, Daedalic and Amanita say they were able to get Lace Mamba to provide them with a “work-in-progress ad hoc royalty report” – a negotiation they say involved topics such as “Crown Prosecution Services” and “imprisonment for organised piracy”. On 11th February they say there was further success, with Lace Mamba apparently paying CBE and Daedalic their royalties, and giving Colibri the owed money for the minimum guarantee, and a promise to pay the rest by 15th March. It all seemed like good news, until Amanita tried to get what they say is owed to them.

Remarkably, Amanita say that Lace Mamba Global (LMG) CEO Adam Lacey told them that Lace Mamba Global and Mamba Games Ltd (MGL) are two separate companies, and that LMG is not responsible for reports and payments. This is despite LMG’s logo being on the boxed copies of Machinarium they were distributing. Things start to get very convoluted, as the man previously recognised as the director of both companies, whom they claimed to have fired, is now the director of MGL and not LMG. It’s all bemusing, and you can see it below. Obviously at this point Amanita are getting lawyers involved, to hopefully gain some clarity over the two apparently separate companies that seemed to share employees.

Clearly we at RPS do not have any knowledge about this situation, and the claims made below are those of the named studios. We’ve contacted Lace Mamba for comment. However, it should be noted that our main contact with Lace Mamba left in November last year, and we’ve yet to be informed of someone taking on his job.

TO ALL MEMBERS OF GAMES INDUSTRY AND ALL PROFESSIONAL GAMES MEDIA

February 11, 2013
Prague/Kaliningrad/Hamburg

An open letter from Amanita Design, Colibri Games and Daedalic Entertainment

Dear colleagues:
This story may remind you of the Digital Jesters story from just a few years ago, because it is essentially the same: a number of studios signed up with a British publisher/distributor; the said British publisher/distributor has neither reported to the developers nor paid the guarantees and royalties under the contracts; and the studios fought back. Today, we’re going public with the story below as a warning to other studios: please learn from our experience and do not make the mistake of working with a group of people who are known for systematically not fulfilling their obligations towards development studios.

CONTRACTS

In November of 2009, Amanita Design signed a contract with Mamba Games Ltd., which allowed Mamba Games Ltd. to publish and distribute Amanita’s Machinarium in certain territories on the condition of a minimum guarantee to be paid, followed quarterly reports and royalty payments. In June of 2010, Daedalic Entertainment signed a contract with Lace Mamba Global Ltd., which allowed Lace Mamba Global Ltd. to publish and distribute Daedalic’s Deponia, The Whispered World, A New Beginning and Edna & Harvey: The Breakout in certain territories on the condition of a minimum guarantee to be paid, followed quarterly reports and royalty payments. In April of 2011, Colibri Games signed a contract with Lace Mamba Global Ltd., which allowed Lace Mamba Global Ltd. to publish and distribute Colibri’s The Tiny Bang Story in certain territories on the condition of a minimum guarantee to be paid, followed quarterly reports and royalty payments.

MISSING REPORTS & PAYMENTS, UNAUTHORIZED SALES

Following the execution of the contracts and delivery of game masters to Lace Mamba Global Ltd., neither Colibri nor Daedalic have received the full amount of the minimum guarantees that Lace Mamba Global Ltd. agreed to pay in their contracts with the studios. At first, promises to pay were made by Jason Codd, LMG’s European Managing Director; then Jason Codd completely disappeared from the correspondence and numerous reminders were ignored by him as well as by his colleagues. At the same time, neither Amanita nor Colibri nor Daedalic received from Mamba Games Ltd. and Lace Mamba Global Ltd. the royalty reports that have been due under the contracts on a quarterly basis. We found ourselves in an uncomfortable position of having a third party exploit the results of our creative work in a totally uncontrolled manner where we did not know when, how and with what result our products were being manufactured and sold into the market. Finally, in a meeting with industry colleagues during GDC 2012 in San Francisco both Amanita and Daedalic with a great surprise found out that their studio’s products are without any agreement or authorization being distributed by Mamba Games Ltd. and Lace Mamba Global Ltd. in the territories where no rights were granted to these companies. Moreover, in some instances Mamba Games Ltd. went so far as to sell to the local distributors the right to manufacture our games for a flat fee, not only collecting such revenue in breach of our rights, but also damaging our games with a model that we would have never agreed to in the first place, no matter who would be offering it.

“LATER” BECOMES “NEVER”

After months of trying to resolve the issue of missing reports, payments and unauthorized sales via email, we decided to terminate our contracts with Mamba Games Ltd. and Lace Mamba Global Ltd. so that at least the company no longer has any rights to manufacture any more copies of our games. In July 2012 and in November 2012, Colibri Games and Daedalic Entertainment sent the official letters of termination to the address of Lace Mamba Global Ltd. specified in the contracts with the studios. Around the same time Colibri Games also published a press release urging other studios not to work with Lace Mamba Global Ltd. due to the lack of reporting and payments on the side of that company ().
It’s worth noting that in later conversations with the representatives of Lace Mamba Global Ltd., they claimed that the letters – despite being delivered with confirmations of the receipt – were never seen, and that their email system was ‘malfunctioning’ exactly on the days when copies of the same termination letters were also forwarded to the company’s email address – despite these emails being successfully delivered without any error messages in response.

UNITED WE STAND

In January 2013, another developer – CBE Software – went public with the similar story: no reporting, no payments, no response from Lace Mamba Global after giving over the master of their game – and our studios decided to make one last collective effort to resolve the mess created by Mamba Games Ltd. and Lace Mamba Global Ltd., contacting not only Jason Codd, who was the director that originally initiated all of the contracts, but also all the other people from Mamba Games and/or Lace Mamba Global whom we knew: Damian Finn, Adam Lacey and Campbell Lacey. Such collective action bore fruit, and we advise other developers in similar situation to resort to the same strategy, joining forces to defend your rights together: after a week of heated discussions involving such entertaining topics as Crown Prosecution Service and possible imprisonment for organized piracy, Mamba Games Ltd. and Lace Mamba Global Ltd. provided Daedalic, Colibri, CBE and Amanita with a work-in-progress ad hoc royalty report.

Moreover, as of February 11, 2013, Lace Mamba Global Ltd. has paid all of its outstanding debts to CBE and Daedalic Entertainment and also paid to Colibri the remaining part of the minimum guarantee that has been due for many months before, signing with Colibri an additional written agreement to pay the remaining debts by March 15, 2013. Finally, Lace Mamba Global Ltd. delivered to Colibri the unsold units of Colibri’s game that were in its possession, and promised to deliver the same to Daedalic. We were also informed that Jason Codd, the person who negotiated all of the original contracts and who was the main point of contact for our studios on the side of Mamba Games Ltd. and Lace Mamba Global Ltd., has been ‘fired’ from his directorship of Lace Mamba Global Ltd.

NOW YOU SEE IT, NOW YOU DON’T

At the time of writing of this open letter, Daedalic has no outstanding financial issues with Lace MambaGlobal Ltd., its contract with Lace Mamba Global Ltd. has been terminated earlier in 2012 and Lace Mamba Global Ltd. now recognizes this termination. Lace Mamba Global Ltd. also recognized the termination by Colibri Games, from 2012, and the companies now have a newly signed agreement according to which the remaining debts will hopefully be paid shortly and the mix-up with the rights will be cleared in a matter of days. With a collective sigh we are so very happy to put this case away and to focus once again on the creative process.

However, a radically different approach was applied by the representatives of Mamba Games Ltd. to the resolution of their issues with Amanita Design: after years of missing reports and lack of due payments, and after selling Amanita’s Machinarium in countries and to companies where and to whom Mamba Games Ltd. had no right to sell the game, Adam Lacey – the CEO of Lace Mamba Global, a company whose logo is clearly displayed on the retail boxes of Machinarium, told Amanita that in fact Mamba Games Ltd. and Lace Mamba Global Ltd. are two different companies, and that Lace Mamba Global Ltd. is not responsible for reporting and payments due on the side of Mamba Games Ltd., which is said to be fully owned by the same Jason Codd who was just a few days ago a director of both of these companies, and who completely disappeared from the radar, nor responding neither to emails nor to phone calls.

Interestingly, Mr. Lacey sometimes signs his emails as the CEO of Lace Mamba Global Ltd., and sometimes as Managing Director of Lace Group (whatever that means), while his colleagues involved in the dispute with our studios use emails form domains such as @mamba-games, @lace-mamba, and @lacegroup. Moreover, Mr. Lacey writes that Jason Codd has been the director of Lace Mamba Global Ltd. while Jason Codd himself writes that he was never officially the director of neither Mamba Games Ltd. nor Lace Mamba Global Ltd., even though he sometimes signed as a European Managing Director of Lace Mamba Global Ltd. (but not of Mamba Games Ltd.). Also, it was Mamba Games Ltd. which wired some of the payments due under the contract with Lace Mamba Global Ltd. Of significant interest is also the fact that the boxes of Amanita’s Machinarium, illegally and without any approval released in retail in Poland and in Sweden, bear the logo of Lace Mamba Global – even though Mr. Lacey claims that Lace Mamba Global is “just a sub-distributor” of the game, while Mamba Games Ltd. is the original publisher. Mr. Lacey could not explain the reasons as to why Mamba Games Ltd., a publisher, would not place its logo on the box of the game, but would rather place a logo of its subdistributor – both of these entities conveniently headed by the same person.

THE WAY FORWARD

It seems that the only way of defending the rights of Amanita is to engage a professional law firm that would be able to take the issue to the British courts in order to establish the precise relationship of Lace Mamba Global, Lace Group and Mamba Games, as well as the positions and responsibilities of these companies and their management as far as Amanita’s contract and breach of such contract are concerned. It is a long and windy road but the studio is willing to take it to establish the truth, so that other studios are prevented from being harmed in a similar way in the future.

As for now, we kindly ask you to distribute this open letter throughout the industry so that at least in the short term, fellow developers pay more attention as to whom they sign with, and whom they send the masters of their games to – as one the master is out of ones hands, unexpected things may happen. We stay united in our disapproval of the business practices described above and we hope that our experience prevents other developers from making similar mistakes.

Jakub Dvorsky, Managing Director of Amanita Design
Andrey Arutyunyan, Managing Director of Colibri Games
Sergei Klimov, Director of International Publishing of Daedalic Entertainment

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36 Comments »

  1. Mr. Mister says:

    *macrowaves popcorn*

    • rapchee says:

      those long waves are not very effective.
      well, assuming you wish to make popcorn – if communication is the goal, they’re perfect

      • Mr. Mister says:

        If I microwaved them, they’d be ready sp soon I’d terminate the whole bowl before the best part.

  2. Meat Circus says:

    Publishers: string ‘em up by the cullions and pelt them with unsold U-Draws.

  3. simoroth says:

    Urgh what a terrible mess. I hope the legal action scares them into action.

  4. RobF says:

    Why would you choose a name for your company that sounds like a sex aid?

    • phlebas says:

      Is that a trick question?

      • SuperNashwanPower says:

        They were almost called Chiffon Strapon (TM)

        In answer to the question, clearly someone is getting shafted, so it seems entirely appropriate.

        • Shuck says:

          “Chiffon Strapon” would be an excellent name for a rock band, however.

    • Surlywombat says:

      Amanita sounds like an STD.

      “I wouldn’t buy a second hand lace mamba, you might catch Amanita off it”

      • Hmm-Hmm. says:

        I’d say it sounds more like a flower or mushroom of some sort.

        • Chaosed0 says:

          The only reason I knew this is because of Oblivion. Red Amanita + Venison = cheapest health potion ever.

      • Geen says:

        It IS a mushroom. A fairly dangerous one, too, if I’m correct.

        • alms says:

          Amanita is a family of mushrooms. One of them, A. Phalloides is one of the most lethal mushrooms. A. Muscaria has a white-dotted red cap, that probably inspired Amanita’s logo, and is poisonous and hallucinogenic.

          With that out of the way, what Lace Mamba has been up to is shameful to say the least.

  5. Post-Internet Syndrome says:

    Well that sucks. A shameful display to be sure.

    Down with this sort of thing.

  6. slerbal says:

    Scary stuff.

    For what it is worth Jason Codd’s LinkedIn page lists him as “European Managing Director at Lace Mamba Global” and he certainly represented himself as the overall CEO in person and never mentioned any of these variously named companies. Though now it has been pointed out in the open letter, I do notice that he used 2 different domains for his emails: @lm-global.net and @mamba-games.com

    Whatever the truth of the matter, I hope all the indies involved get their owned royalties.

  7. Mario Figueiredo says:

    Ugh! :(

    Someone gets up a business running that could theoretically distribute games through a physical channel, so essential to many territories in the world not still not benefiting from broadband services. Turns out they were crooks :/

    • Shuck says:

      Publishers so frequently pull shenanigans like this, sometimes causing studios to collapse by financially screwing them over, that I’m not sure I’d single these guys out as “crooks.” They could just be not-especially dysfunctional publishers.

      • MadTinkerer says:

        Just because there’s a significant number of crooks in the video game publishing industry, that doesn’t mean we shouldn’t point out the ones that are crooks. Reasons:

        #1: The situation is actually better than it used to be. Back in the late 90s / early to mid 2000s, there were a LOT of fly-by-night small to mid tier shyster publishers, most of which went out of business or were sued out of existence (and good riddance). Many were bought up by larger publishers (and unfortunately those previously good publishers were “infected” with bad practices for a time, some of which linger to this day, coughActivisioncough). But most publishers still around now have learned many harsh lessons (most of them do care enough to not want to see all their studios shut down, even if they’re not always successful coughEAcough).

        So with fewer crooks around, individual crooks should make the news.

        #2: incompetent / semi-competent publishers need as much discouragement as can be heaped upon them. Incompetence + complacency = a festering crook infestation. Discipline those who have a chance of redeeming themselves from their mistakes, and mercilessly crush those who deliberately passive-aggressively abuse their business partners. (Like Tim Langdell) This is done by heaping public scorn upon bad behavior, and forcing them to do what’s right or pack up and try other scams.

        We just have to hold everyone responsible for their promises, and the bad companies will crumble.

        #3: Indies don’t even need publishers anymore. This sort of thing should never, EVER be tolerated again. Financial abuse, lies, theft, and fraud are all crimes which people in other industries go to jail for. Heck, people go to jail over much lesser crimes like “insider trading”, and companies are broken up over “monopolistic tactics” (a.k.a. having too much success). “Forgetting” to pay royalties is theft, period. Consistently “forgetting” is an organized scam, period.

        The more this sort of thing is uncovered, the more crooks will think twice about trying the scam in the first place.

      • RobF says:

        Yup, wot Mad Tinkerer said and also, one of the big reasons we don’t see so much of this now is thanks to the internet and so many of us all talking to each other and calling these things out publicly as precisely what they are.

        And, of course, if nothing else, it’s a massive warning to other devs to know who to and who not to deal with. For every name you’ve heard of who might get screwed there’ll be the much, much smaller devs who blunder in unawares. It’s only right that they have information out there, y’know? There’s a time and a place for mincing words and there’s a time for calling something precisely what it is and when it’s folks livelihoods at stake, when it’s the money that can keep a roof over a head, NAME IT.

  8. SuperNashwanPower says:

    “Lace Mamba” sounds like lingerie with a built in sex toy

    • slerbal says:

      Yes. Yes it does. Small publishers have a knack for picking names that sound like sex toys or evil conspiracies. I can think of a few others, but given the context of this article I’d probably best not mention them :D

    • Craig Stern says:

      Or a villain out of Kill Bill, perhaps?

    • DiTH says:

      I was thinking of Black Mamba due to my other opera tab being nba.com

  9. Inglourious Badger says:

    Thought I recognised that name somewhere. I bought the collector’s edition boxed copy of Machinarium for PC, I think it claimed to be both PC and Mac compatible, but the disk was for Mac only so useless to me. I remember then thinking they must be pretty shoddy distributors, whoever Amanita were using. Looks like it wasn’t just the disks they were cutting corners with.

    They sent a replacement disc (plus the whole collector’s edition bumf a second time aswell) at no extra cost, so fair play there, but just silly silly mistake to make.

  10. Scone says:

    That’s some nasty stuff. I got my copy of The Void from Lace Mamba Global, anyone know how Ice Pick Lodge’s dealings with them went?

  11. Lanfranc says:

    Messy story, but I was a little puzzled by this particular part here:

    “It seems that the only way of defending the rights of Amanita is to engage a professional law firm that would be able to take the issue to the British courts…”

    Does that mean they don’t already have legal representation? Seems like it’s rather overdue, then.

    • iucounu says:

      Lawyers are expensive, though. Depending on the sums of money involved, on both sides, it might be a significant escalation of risk to get them involved. Small publishers and game studios are unlikely to have lawyers on staff, so this could be a big step for them.

      • Lanfranc says:

        I would disagree with that, and I actually think this precise situation is an excellent example of why. Obviously most companies cannot have their own lawyers on staff, but any professional business definitely should have a relationship with a good law firm that specialises in their field, and should bring them in when there are potential problems.

        The real risk here is exactly being afraid of getting the lawyers involved, because that is when conflicts can really get out of hand.

        • Ergates_Antius says:

          If they’re not a British company, then they wouldn’t necessarily already have a relationship with a British law firm.

          • Lanfranc says:

            If they’re doing significant business with a British company under British law, they probably should, though.

            Anyway, I obviously don’t know the details here or what Amanita have done or not done to protect themselves legally, and in no way am I trying to give them “good advice”. Just saying in general that this is exactly the kind of situation that lawyers exist to prevent, and any company run on a professional level needs to have a good one on call from day 1, rather than waiting until the house is already on fire. These two guys explain much more about why.

  12. Skabooga says:

    May justice be served.

    Of course, my natural prejudices have me leaning towards the idea that Lace Mamba is in the wrong here and deserves reprimand from the swift and exacting rod of justice. Well, that, and that three separate developers all seem to be having the same kind of problem with Lace Mamba.

  13. jrodman says:

    I sure hope my gog.com purchases did not go into this bucket.

    • deadfolk says:

      That was my first thought. Fortunately, GOG list Amanita and Daedalic as both developer and publisher for their games, so I think they’re probably okay.

  14. Hardmood says:

    Mr. lacey…mhm.
    well known for screwing up partners in music business afaik (same methods ^^). now he got a new playfield in the gaming industry.

    and what is the community discussing?
    about that feckin company name…