SANTA BARBARA, Calif. (CN) – Cobalt Flux, a company that makes dance platforms for video games, tried to force a fellow technology developer to illegally restrain competition by selling within certain geographic areas, Sportwall International claims in Superior Court.
Sportwall also develops computer-game accessories, and claims it has legitimate agreements with Cobalt outlining their rights in the industry. But Sportwall claims Cobalt tried to coerce it into backing off in certain markets and sharing confidential customer information, in violation of antitrust laws.
When Sportwall refused to participate in the illegal schemes, the lawsuit claims, Cobalt retaliated by refusing to negotiate under their existing agreements. This “shackled” the plaintiff’s ongoing development and undermined marketing efforts, the lawsuit claims. Sportwall says it spent “hundreds of thousands of dollars” developing products that relied on promises Cobalt never intended to keep.