The child-raising MyBaby simulation series has been a success for SouthPeak thus far, and the company is arguing that it should continue to reap the young franchise’s rewards, claiming it owns the rights to the next game in the series instead of Majesco.

Majesco recently announced that it would be publishing the next installment of the franchise which had previously been shipped by SouthPeak, a claim the latter company is disputing. SouthPeak claims that it has the right to publish upcoming games in the MyBaby franchise, but a third company — a French video game publisher called Nobilis — has the original rights to the franchise and has granted them to Majesco.

SouthPeak is also reportedly facing financial hardships, with publisher-developer CDV claiming SouthPeak owes them $3.4 million in payments. We’ll continue to keep an eye on all companies involved in the various legal wrangles as they untangle.

SOURCE: SouthPeak suing Majesco over My Baby 3 [Joystiq]