Biting the Hand that Feeds You

Marvel Comics is in bankruptcy. They screwed themselves in the 1990’s by overextending themselves, financing bad projects, and believing the record sales of the collector’s market would last forever. When the bubble burst, they were left with overpaid artists (not writers, because Marvel never pays for good stories, just astounding artwork), properties that had lost 50% or more of their trademarked value, and stretched so thinly they couldn’t stand under the base that was left. They also are fighting some pretty nasty lawsuits, recently losing one to a comic book writer/artist who sued them for the rights to one of his creations and won, further lessening their hold on their products.

Early in 2004, Cryptic Studios and NCSoft released a PC game entitled City of Heroes. In this game, the user can create virtually any super hero he can imagine. With the thousands of costume combinations, hundreds of power/ability choices, and the virtually unlimited naming options they made available to their user base, Cryptic knew that they would have some individuals who would try to emulate their favorite published comic book heroes. So they included in the EULA (end user license agreement) stipulations about using copyrighted and trademarked information within the game. They also aggressively mine their database of names and the in-game moderators enforce name changes for anyone who uses a trademarked name.

City of Heroes hit the market at a good time. It has approximately 200,000 subscribers and has ranked in the top 3 of the game sales charts every month since its release (and in the top position for three months straight). I also note that none of the video games using Marvel Comics trademarked material has made even the top 10 during the same period of time (and they have released at least one major title in this time).

And now Marvel Comics is suing both NCSoft and Cryptic Studios for trademark infringement.

I understand that the trademark laws are such that you have to sue in order to maintain control of your trademark (unlike copyright laws, where you can choose whether to sue someone). That being said, Marvel Comics is biting the hand that feeds it. City of Heroes has brought many fans back to comic books who have either never collected or who have been away from it for many years. It has brought PC game fans who never liked comic books and super heroes into the fold. If my local comic book shop is any indication, it has boosted sales across the board as new readers start to pick up titles. In a time when Marvel Comics needs all the readers (and money) they can get to crawl out from beneath the morass they put themselves in, they are striking out and hurting one of their best free sources of potential new customers.

You notice that nowhere in the above article does it mention that they tried to cut a licensing deal with Cryptic. Nowhere does it mention Cryptic Studio’s EULA and aggressive defense of Marvel’s, and other comic book companies’, intellectual and trademark properties.

If the message boards for City of Heroes are any indication, many people who are fans of both comics and the game are going to stop buying Marvel products (and some have indicated they will stop going to see movies using Marvel characters) until this lawsuit is resolved in favor of Cryptic Studios. Others have said they are so disgusted with this lawsuit and Marvel’s antics they will never go back.

In one fell swoop Marvel Comics has managed to alienate their biggest source of new fans and possible income as well as offend and drive away existing fans and buyers of their product. Instead of lauding Cryptic Studio’s efforts to maintain Marvel’s trademarks and trying to work with them to promote comic books in general, they bite the hand that feeds them.

And as one final comment that really shows where Marvel Comic’s interests lie: yesterday I bought this week’s comic books. About half of them were Marvel Comics. Every single one of them had a center-book, two-page, full color advertisement for City of Heroes in it. In case you don’t know, this is the most expensive size and location in which to buy an advertisement in a comic book.

Shame on you, Marvel Comics.