Quoted from MrBally:
Since JJP did not meet their "contractual obligation"; I wonder what the penalty is?
Some contracts have specific clauses for liquidated damages ("LDs"), where missing a milestone can be especially onerous for one party. (For example, an expensive offshore oil installation can easily incur damages of $500,000/day if the installation vessels switch to stand-by mode due to delays instead of completing a scheduled activity, because one additional day in the field for the vessel owner can have a detrimental knock-on effect on downstream projects for other customers.)
Nevertheless, LDs can sometimes be negotiated away through a contract amendment before a milestone is missed, if it is intentionally missed for a compelling reason. For example, in this case, JJP could have argued, "Based upon vocal feedback from potential buyers, we'd like to delay the release by 3 more months, but the design changes that we are incorporating will maximize your licensing royalties by maximizing overall sales, and we'll still hit the DVD release date."