The Fifth Circuit Court of Appeals recently affirmed a lower court's decision in the case of Thomas v. Leyline Publishing, Docket No. 26-10136. The ruling favored Leyline Publishing, dismissing claims made by Shawn Thomas and his company, The Tabletop Adventure, L.L.C., regarding a contractual dispute over a therapeutic tabletop game. This decision has implications for creators and publishers in the gaming industry, particularly in how agreements are interpreted and enforced.

The dispute arose after Thomas, an advocate for using tabletop role-playing games (TTRPGs) as therapeutic tools, entered into a licensing agreement with Leyline Publishing. The agreement was intended to allow Leyline to develop and market Thomas's game, titled Realms of Kymoria (RoK). However, disagreements over the direction of the project and the use of intellectual property led to legal action.

Background

Shawn Thomas is a passionate creator of tabletop games and sought to develop RoK as a therapeutic tool. In 2021, he obtained a certification from Leyline’s Geek Therapeutics to facilitate TTRPGs in therapeutic settings. After discussing a potential collaboration on RoK, Thomas and Leyline entered into two agreements, one of which was a licensing agreement known as the Service Level Agreement (SLA).

The SLA, drafted by Thomas, allowed Leyline to use and market the RoK content in exchange for specific fees and royalties. However, as the project progressed, concerns arose regarding the Open Game License (OGL) that governed the use of certain gaming content. Leyline and Thomas disagreed on how to proceed, leading to a breakdown in communication and ultimately a cease-and-desist letter from Thomas to Leyline.

When Leyline continued its marketing efforts, Thomas filed a lawsuit in December 2024, claiming Leyline infringed on his intellectual property rights and used his name and image without permission. In response, Leyline sought summary judgment, arguing that the SLA authorized their actions.

The Ruling

The Fifth Circuit Court upheld the lower court's summary judgment in favor of Leyline Publishing. The court found that the SLA constituted a valid and binding agreement, allowing Leyline to market and sell the RoK content. The court noted, "The SLA remains in effect, and Leyline is authorized to use the content provided by TableTop."

The court also rejected Thomas's claims regarding the unauthorized use of his name and image, stating that Leyline's portrayal of him as the creator of RoK was both true and authorized under the SLA. The court emphasized that the cease-and-desist letter issued by Thomas did not revoke Leyline's rights under the existing agreement.

Impact

This ruling reinforces the importance of clear contractual agreements in the creative industries, particularly in collaborative projects. It highlights that parties must adhere to the terms of their agreements and that failure to properly bill or communicate can impact claims of breach or infringement. The decision may serve as a precedent for future cases involving licensing agreements in the gaming and entertainment sectors.

The court's affirmation of the SLA's validity also underscores the significance of the written terms in contractual disputes. By establishing that Leyline had the right to use the content provided by TableTop, the ruling clarifies the expectations for both parties in similar agreements.

What's Next

While the Fifth Circuit's ruling is final, it is possible that Thomas and his company may seek further legal recourse, although details on any potential appeals were not available in the court filing. The outcome of this case may influence ongoing and future collaborations in the tabletop gaming industry, as creators and publishers navigate the complexities of intellectual property rights and contractual obligations.