But in this case, it isn't describing an exclusive right...but a license to exclusive embed CryEngine into a game.
CryTek grants to Licensee a world-wide, license only to exclusively embed CryEngine in the Game.
CryTek can't give this license to anyone else because they don't own the IP. Nor is the interpretation that this simply means only CIG can develop the Game with CryEngine because that same right is addressed in 2.6.
Section 10.7 also seems to deal with the "protect CIG" interpretation you suggest.....and also seems to negate, to a degree, the no damage clause.
Barring a legalistic definition, the clause in question seems readily understandable.
So long as CryTek want to use CryEngine, then no other engine can be used.
The other side of the question is...does it have to use CryEngine?
The GLA in turn reads as if ONLY CryEngine can be embedded....a harsh condition, perhaps but one that CIG agreed to.
However, besides legalistic interpretations of the clause, the other aspect is "intent". We don't know what supporting evidence either side will bring to the case.
The simple fact is this is a GLA that appears to have no termination date, no major support from CryTek or obligation upon it, requires CIG to display...prominently...CryTeks logos and which requires CIG to share optimizations and bug fixes while requiring it to protect CryTeks IP.
CIG got a cheap engine out of this deal...and it was smart to sign on...but this is not really a document that suggests an agreement between equals. CryTek were doing CIG a favour and it shows.
The only weird aspect is the damage indemnification clause. It seems weird that CryTek would agree to waive damages except for an intentional breach. ...especially since other sections seem to indicate monetary damages are a possibility.
I wonder if Section 10.7 might be applicable as a way to sidestep that damage waiver?
As an aside...it looks like 7.1 does confirm the GLA is subject to an NDA. CIG might have breached that by effectively putting the GLA onto the public domain.
You miss quoted what it says:
to exclusively embed Cryengine in the Game and develop the Game which right shall be sub licensable pursuant to sec 2.6
It states it as a "right", in the grant section. They are not obligated to exercise a right granted to them.
it also states
to exclusively manufacture, market, promote, sell, license, publish, and exploit the Game in any way which right shall be freely sub-licensable.
This means they can sell the "Game" in any way. And the "Game" has been defined as
"for the game currently entitles "Space Citizen: and it's related space fight game "Squadron 42", together hereafter the "Game"
10.7 is interesting because it kind of falls in line about what I am saying that 2.1.2 is to protect CIG from Crytek trying to license the "Game" to other people, cause in 10.7 there is a clause in saying "nor shall Crytek be entitled to enjoing the publishing or other exploitation of the Game," so apparently there is a need to to show if Crytek has the right to license the "Game" to other people. At least that is what it looks like to me.
Up until today I would have completely agreed with you on them breaking the NDA, provided that #1 below was not considered as breaking the NDA on Crytek's part. I saw this earlier on the Star Citizen's refund reddit and the guy makes a good point, which is #2 on the list, and I'll quote him.
As far as 7.1.
2 things:
1) Crytek revealed details of the GLA to the public first, they put it in their complaint. That can very well open it up for CIG to also use the GLA in their response since it was Crytek that broke the NDA first.
But #1 may not even matter because of this
Federal law allows to break NDA when it comes to tort suit, which this suit is under tort.
"The existence of a privilege to disclose another's trade secret depends upon the circumstances of the particular case, including the nature of the information, the purpose of the disclosure, and the means by which the actor acquired the information. A privilege is likely to be recognized, for example, in connection with the disclosure of information that is relevant to public health or safety, or to the commission of a crime or tort, or to other matters of substantial public concern."
https://tinyurl.com/y84nkglbI really don't care which way this lawsuit goes, but it has been interesting searching the internet for my research, looking at other links people provide, getting analysis from real lawyers. I find it a great chapter in the SC Drama Show, where the show will most likely lead to everyone on CIGs side being, figuratively, dead in the end, haha