Michigan Game Maker Sues State

July 28, 2010 -

Nathaniel McClure (pictured), CEO of the game development Scientifically Proven Entertainment, has launched a suit against the Michigan Film Office and the Michigan Department of Treasury claiming that the state has denied his application for tax credits.

The Detroit Free Press reports that McClure is incensed over rules that “make it impossible for all but the smallest video game developers to use Michigan's 42% video game tax credits.” McClure and his company, which employs 15 and also provides internships to Michigan State University students, are creating a game based on the Discovery Channel show Man vs. Wild.

Michigan Film Commissioner Janet Lockwood, however, informed McClure in a June 8th letter that Scientifically Proven was not eligible for the tax breaks because the company does not “own or control” the intellectual property rights to Man vs. Wild, Crave Entertainment does. Lockwood wrote, “An applicant with less than overall control over the project is not an 'eligible production company' eligible for the credit.”

McClure stated that Crave is on board to distribute and market the game upon completion, and added that he did not want to sue, but that state officials “have refused to meet with him.”

McClure’s attorney said that ownership of the IP rights was not required to receive the tax incentives, as the law states (per the paper), “… once companies receive approval for their tax-credit applications, any production expenses incurred in Michigan after that point, including the costs to acquire any intellectual-property rights, are eligible for the tax incentive.”

If things don’t work out, McClure is threatening to leave Michigan for another state.

On its website, Scientifically Proven notes that it is "utilizing the nation's best entertainment tax incentive to create compelling competitive content." Ironically, the state film commission also touted the company as a success story in its annual report.

Ah, bureaucracy.


Picture of McClure from the Detroit News


Comments

Re: Michigan Game Maker Sues State

Protip: Michigan has inane taxes even after this credit. Go to a state that doesn't hate buisness.

Re: Michigan Game Maker Sues State

Maybe if he makes a GTA-clone game without sexual material, then, until if/when SCOTUS backs up the California law and efforts are then made to add violence to the "obscene materila" lists of "Community Standards" (which is the REAL purpose of trying to get SCOTUS to support the CA law), he should be able to publish a computer/video game that MI will consider his application for tax incentives.

Nightwng2000

NW2K Software

http://www.facebook.com/nightwing2000

Nightwng2000 is now admin to the group "Parents For Education, Not Legislation" on MySpace as http://groups.myspace.com/pfenl

Nightwng2000 NW2K Software http://www.facebook.com/nightwing2000 Nightwng2000 is now admin to the group "Parents For Education, Not Legislation" on MySpace as http://groups.myspace.com/pfenl

Re: Michigan Game Maker Sues State

I am with McClure on this one.

According to the statute in question (found here: http://www.legislature.mi.gov/%28S%28tkbteu555nerevztdx3iam45%29%29/mile...) an eligible production company is defined as:

(d) "Eligible production company" or "company" means an entity in the business of producing qualified productions, but does not include an entity that is more than 30% owned, affiliated, or controlled by an entity or individual who is in default on a loan made by this state, a loan guaranteed by this state, or a loan made or guaranteed by any other state.

and a qualified production is defined as follows:

(k) "State certified qualified production" or "qualified production" means single media or multimedia entertainment content created in whole or in part in this state for distribution or exhibition to the general public in 2 or more states by any means and media in any digital media format, film, or video tape, including, but not limited to, a motion picture, a documentary, a television series, a television miniseries, a television special, interstitial television programming, long-form television, interactive television, music videos, interactive games, video games, commercials, internet programming, an internet video, a sound recording, a video, digital animation, or an interactive website. Qualified production also includes any trailer, pilot, video teaser, or demo created primarily to stimulate the sale, marketing, promotion, or exploitation of future investment in a production. Qualified production does not include any of the following:

(i) A production for which records are required to be maintained with respect to any performer in the production under 18 USC 2257.

(ii) A production that includes obscene matter or an obscene performance.

(iii) A production that primarily consists of televised news or current events.

(iv) A production that primarily consists of a live sporting event.

(v) A production that primarily consists of political advertising.

(vi) A radio program.

(vii) A weather show.

(viii) A financial market report.

(ix) A talk show.

(x) A game show.

(xi) A production that primarily markets a product or service other than a state certified qualified production.

(xii) An awards show or other gala event production.

(xiii) A production with the primary purpose of fund-raising.

(xiv) A production that primarily is for employee training or in-house corporate advertising or other similar production.

(l) "Sound recording" means a recording of music, poetry, or spoken-word performance, but does not include the audio portions spoken and recorded as part of a motion picture, video, theatrical production, television news coverage, or athletic event.

(m) "State certified qualified production" means a qualified production for which a postproduction certificate has been issued by the office under subsection (5).

No where in either section or any I did not list does it state the production company needs to own the IP rights. Even the film office's website FAQ does not state they need to. (found here: http://www.michiganfilmoffice.org/cm/files/film-Incentive-Combined-FAQs.pdf)

The FAQ does state the any cost associated with licensing an IP are not covered, but all development costs should be.

So, unless he was adding in licensing costs, which is highly unlikely considering he says that Crave is managing the IP rights, he should qualify.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

 
Forgot your password?
Username :
Password :

Poll

How do you feel about Amazon buying Twitch?:

Shout box

You're not permitted to post shouts.
MaskedPixelantehttp://m.tickld.com/x/something-you-never-realized-about-guardians-of-the-galaxy Right in the feels.08/29/2014 - 6:56pm
AvalongodAgain I think we're conflating the issue of whether Sarkeesian's claims are beyond critique (no they're not) and whether its ever appropriate to use sexist language, let alone physical threats on a woman to intimidate her (no it isn't)08/29/2014 - 5:04pm
prh99Trolling her or trying to assail her integrity just draws more attention (Streisand effect?). Which is really not what the trolls want, so the only way to win (if there is a win to be had) is not to play/troll.08/29/2014 - 5:02pm
prh99Who cares, just don't watch the damn videos if you don't like her. Personally, I don't care as far as she is concerned as long there are interesting games to be played.08/29/2014 - 4:34pm
Andrew EisenZip - And yet, you can't cite a single, solitary example. (And no one said you hated anyone. Along those lines, no one claimed Sarkeesian was perfect either.)08/29/2014 - 3:51pm
Andrew EisenSaint's Row: Gat Out of Hell was just announced for PC, PS3, PS4, Xbox 360 and Xbox One making it the 150th game For Everything But Wii U! Congratulations Deep Silver!08/29/2014 - 3:49pm
ZippyDSMleeI do not hate them jsut think its mostly hyperlobe.08/29/2014 - 3:40pm
Andrew EisenSleaker - I'd say that's likely. From my experience, most who have a problem with Sarkeesian's videos either want to hate them in the first place (for whatever reason) or honestly misunderstand what they're about and what they're saying.08/29/2014 - 3:16pm
james_fudgeWe appreciate your support :)08/29/2014 - 2:55pm
TechnogeekIt gives me hope that maybe, just maybe, the gaming community is not statistically indistinguishable from consisting entirely of people that your average Xbox Live caricature would look at and go "maybe you should tone it down a little bit".08/29/2014 - 2:49pm
TechnogeekI just want to say that while I've disagreed with the staff of this site on several occasions, it's still good to see that they're not automatically dismissing Anita's videos as a "misandrist scam" or whatever the preferred dismissive term is these days.08/29/2014 - 2:49pm
E. Zachary KnightZippy, So you can't find even one?08/29/2014 - 1:04pm
ZippyDSMleeAndrew Eisen:Right because shes prefect and never exaggerates... *rolls eyes*08/29/2014 - 12:53pm
SleakerAnd honestly, nearly all of the games she references, or images she depicts I've always cringed at and wondered why they were included in games to begin with, from pinups through explicit sexual depictions or direct abuse. I think it's cheap storytelling.08/29/2014 - 12:35pm
Sleaker@AE - aren't most people fundamentally misunderstanding her at this point? haha.. On a related note I think a lot of the backlash is coming from males that think she is telling them their 'Generic Male Fantasy' is bad and wrong.08/29/2014 - 12:33pm
Andrew EisenAnd no, I don't think the female community would be upset over the performance of a case study in and of itself. Possibly the mostivations behind such a study, the methodology or conclusions but not the mere idea of a case study.08/29/2014 - 12:29pm
Andrew EisenAmusingly, these videos aren't saying you can't/shouldn't use tropes or that sexual representations are inherently problematic so those are very silly things to have a problem with and indicate a fundamental misunderstanding of the series.08/29/2014 - 12:29pm
SleakerDo you think the female community would get extremely angry over a male doing a case study on the negative impact of sex-novels and their unrealistic depiction of males and how widespread they are in american culture?08/29/2014 - 12:25pm
SleakerThe other thing that people might find problematic is that they see no problem with sexual representations of females (or males) in games. And realistically, why is there anything wrong with sexual representations in fiction?08/29/2014 - 12:24pm
SleakerTo even discuss or bring up these issues at a cultural level to begin with. Going straight for games to many probably feels like a huge overstepping given that it's interactive story in many cases, and when you're telling a story why can't you use tropes.08/29/2014 - 12:21pm
 

Be Heard - Contact Your Politician