Last week, publisher THQ announced that it was being sued again by World Wrestling Entertainment (WWE). This is the second time the WWE has sued the publisher, with the first case still working its way through the courts.
THQ said the latest dispute was over alleged improper sales of WWE
games in Japan and other Asian countries, quickly adding its contention
that the suit is without merit and the publisher will fight it.
However, other details were sparse. GameSpot obtained a copy of the
suit today to find out exactly what the wrestling federation's beef
with its game-publishing tag-team partner entails.
WWE is claiming that THQ sublicensed out the rights to games
based on the wrestling organization for at least the last five years
when it didn't have the rights to do so. For one thing, WWE says that
THQ never had any kind of a license agreement with the wrestling
company in the first place; its deals were made with THQ-Jakks Pacific,
a separate joint venture half owned by the publisher and half owned by
WWE's toy license-holder Jakks Pacific.
Furthermore, WWE says that the licensing agreement it does have
with THQ-Jakks Pacific specifically forbids sublicensing to any company
that is not wholly owned by the joint venture without prior written
consent from WWE. WWE said that it never received a request for nor
granted any such written consent.
As for whom THQ was licensing the rights to, WWE claims it was
SmackDown! franchise developer Yuke's (of which THQ is only a part
owner), which handles the distribution of WWE games in Japan and other
Asian countries. The wrestling organization also claims that THQ was
collecting royalties from Yuke's that should have gone straight to the
WWE instead.
As for why the WWE hasn't brought the issue to court before
now, the company claims that THQ concealed the sublicensing agreements
from it. It says that when THQ submitted package approval request forms
in 2004 for a game to be sold in Japan, the publisher listed Yuke's as
"THQ's regional distributor," and not a sublicensee.
THQ-Jakks Pacific has held the WWE game license since June of 1998,
according to the suit, and the agreement currently extends throughout
2009. THQ-Jakks also holds the option to extend that by another five
years "provided that certain conditions are met." Those conditions are
not specified in the lawsuit.
The WWE is asking for a declaration that it is entitled to
terminate its licensing agreement with THQ-Jakks Pacific, for THQ to
give up whatever money it made from the sublicensing agreement, and for
monetary damages with interest.
When WWE first brought the charges to THQ's attention earlier
this year, the publisher denied them. "The WWE had been aware and had
consented to the manner of distribution in Japan and the payment of
royalties with respect to such sales and, in addition, had separately
released the joint venture from any claims with respect to such matter
as a result of a settlement of a royalty audit of the THQ/JAKKS joint
venture," THQ said, later adding, "We believe we have several bases for
defending any claim of breach of the video game license agreement
resulting from the manner of distribution of WWE-licensed products in
Japan and other Asian territories."
Brendan Sinclair
October 23, 2006
Source:
Gamespot