Original Halo Composers Sue Microsoft Over Unpaid Royalties And It Could Delay The Paramount TV Show

The original composers for Microsoft’s Halo franchise are suing the company over unpaid royalties that go back as far as 20 years, according to a new report from Eurogamer. 

Marty O’Donnell and Mike Salvatori are also exploring the option of securing an injunction on Paramount’s upcoming HaloThe TV Series. If such an injunction is secured, it could delay the show’s release. 

According to Eurogamer’s report, the lawyers representing O’Donnell and Salvatori filed the lawsuit in a Washington court back in June of 2020 and that since then, depositions and discoveries have been made. Now, a mediation session is scheduled for next week between the two parties – presumably the duo’s lawyers and Microsoft’s lawyers – and if an agreement or settlement is not reached then, this dispute could go to court. 

Six faults are brought against Microsoft in this lawsuit

1. Brute of contract
2. Brute of fiduciary obligation to build the royalty income for a joint venture
3. Infringement of duty to act with good faith and fair dealing
4. Failing to submit an accounting partnership
5. Unjust enrichment 
6. Tortious interference

O’Donnell told EurogamerSalvatori and he have tried to get these royalties from Microsoft over a decade, but with little success. The two then decided to file a lawsuit. According to the famed composer, Halo’s iconic music was trademarked by the two of them under O’Donnell Salvatori Inc. As such, their Halo music was licensed to Bungie, which O’Donnell says happened under a deal that remained in place even as Bungie was purchased by Microsoft in 2000. 

Eurogamer reports that Microsoft’s counterclaim declares that the composers’ Halo score actually qualifies as work-for-hire. Microsoft would be named the rightful owner of the work if it is proven. 

“It was never work-for-hire,” O’Donnell said. “It was always a license deal. So that’s what we did with Halo. This was 1999’s first Halo recording. Bungie licensed it. Bungie didn’t get bought by Microsoft for over a year.” 

The composers approached Microsoft to sign over publishing rights and copyright for their music after a while. O’Donnell said when doing that, he wanted “to do it the way it’s done in movies and television, where the composers are still ASCAP composers, and it’s not a pure work-for-hire.” 

“There is a contract for any ancillary royalties – so use in commercials, use in anything outside the game, specifically, or sales of soundtracks,” O’Donnell said. “O’Donnell Salvatori is supposed to get 20 percent of anything outside the game that uses the music. It is quite fair, in fact. A lot of composers and music people in the movie business get more like 50 percent.” 

O’Donnell and Salvatori are claiming that they have not received the royalties due to them. It’s important to note that O’Donnell is also going through some legal troubles in association with Bungie and his work on the Destiny franchise. Read more here. However, this lawsuit against Microsoft was filed before Bungie served O’Donnell with contempt of court papers over musical tracks O’Donnell uploaded to his own YouTube channel, which he was reportedly not allowed to do, as reported by Eurogamer. 

“We’re just trying to get them to do this thing that we thought everybody agreed to 20 years ago,” O’Donnell said. 

Concerning the future Halo TV show from Paramount, O’Donnell told Eurogamer that he is instructing his lawyers to explore injunction options to get the TV show’s release blocked, or at least delayed for now. 

“This Paramount thing just showed up on TV and Mike and I felt pretty disrespected,” O’Donnell said. “Having a connection to ancillary revenue from exploiting the originalHalo music is exactly what this contract is all about. Since we filed two years ago, they’ve continued to ignore the terms. Now, they’re about to broadcast the Halo TV show and are using our monk chat (calling it the theme to Halo) to also advertise and solicit subscriptions for Paramount+.” 

You can read more on this legal battle here Eurogamer’sFull report.  

[Source: Eurogamer]