According to The Washington Post, European esports organization G2 Esports has filed a lawsuit in Los Angeles County Superior Court accusing blockchain tech company Bondly of failing a deal to develop and sell non-fungible tokens, or NFTs, based on intellectual property of the esports brand.
In its statement, the esports club claims that Bondly misled G2 Esports management about its capabilities and failed to meet the deadline, which resulted in more than $5,250,000 in damages.
According to copies of two contracts attached as evidence to the application, G2 Esports and Bondly entered into a two-year exclusive partnership on June 2 last year. As a member of this partnership, Bondly was commissioned to develop and act as a sales agent for the organization's NFT.
The agreement in the contracts states that the esports brand has granted Bondly access to its intellectual property — images, video and audio related to the company and its esports teams — and plans to promote the company as an "Official Partner of G2 Esports".
The organization alleges in the lawsuit that shortly after sending the first invoice for rights, a Bondly spokesperson wrote to G2 Esports that the company had “reached the point where it was able to successfully implement the NFT program.” In subsequent communications, G2 Esports alleges that the two parties were unable to an agreement on who would be responsible for the responsibilities outlined in the contract and that Bondly was trying to suspend the agreement, a move the organization rejected According to allegations, a few weeks later, Bondly attempted to terminate the agreement between the two companies, citing G2 Esports' unwillingness to work on an agreed contract.
After all, G2 Esports claims that the reach and popularity of the brand was a huge attraction for Bondly.