Court denies restraining order in 'Scratch' case

Activision denies allegations made by Genius, says claims "lack merit"

Activision has released a statement saying that the Los Angeles Superior Court found "no evidence of wrongdoing" in the complaint filed by Genius Products on Tuesday, and has refused to grant the return of assets requested.

Activision says it "did not interfere with or delay" 7 Studios' development of Scratch: The Ultimate DJ after its acquisition on April 6, despite Genius' claims to the contrary.

"These allegations are nothing more than an attempt by Genius to place blame for the game's delay, as well as to divert attention from the cash flow, liquidity and revenue challenges Genius detailed in its March 30, 2009, SEC filing," Activision said in a statement today.

"By their own admission in October 2008, the game had fallen behind in production, which was well before Activision had any involvement with Genius, Numark or California 7 Studios regarding the game."

Genius' original complaint called for the immediate return of game assets, claiming that Activision's purchase of 7 Studios was part of "a sinister strategy of intentional interference and unfair competition" to "delay and prevent the completion" of Scratch: The Ultimate DJ, a competitor to Activision's upcoming DJ Hero. has reached out to Genius Products for a response to this news.

CORRECTION: has been given access to the transcripts for this hearing, and notes that while the Los Angeles Superior Court found no evidence of wrongdoing against Activision, it has in fact ordered the immediate return of source code for Scratch: The Ultimate DJ from 7 Studios to Genius.

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