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WWE News
WWE News: THQ files lawsuit to prevent Jakks from renewing deal with WWE, Analysis of Very Big Mess Jul 1, 2009 - 10:04:30 AM
Jakks Pacific issued a press release today to announce that video game-maker THQ is filing a lawsuit in Los Angeles, California claiming they are "not ready to make a decision" on whether to renew WWE's video game license based on the "joint venture" agreement between Jakks and THQ.
In the press release, Jakks said they notified WWE that they "intended to exercise its option to renew the WWE videogame license." The license expires on December 31 with an option to renew for five years through 2014.
However, THQ wants to hold off on deciding to renew the license. We reported last week that WWE and THQ may not be working together on WWE video games after this next release of the Smackdown vs. Raw 2010 video game due in fall '09.
THQ and Jakks have a "joint venture" agreement to work with WWE. THQ's lawsuit claims Jakks does not have authority to renew with WWE without THQ's consent, THQ has no obligation to renew the deal with WWE, and THQ can publish any video game based on wrestling.
Jakks and THQ have reportedly entered "arbitration proceedings" to evaluate the monetary value of the deal and assess any potential damages.
Caldwell's Analysis: This is a mess. After WWE spent several years trying to receive damages from Jakks for their part in a bribery scandal related to this Jakks/THQ joint venture, only to be turned down by federal and state judges, THQ is now attempting to bring everyone back into court. Jakks, who will no longer be WWE's toy manufacturer at the end of the year when WWE switches to Mattel, is trying to show they are "ready to do business" by claiming they want to renew the joint venture agreement past the end of this year for WWE's video games.
THQ, though, is reportedly not pleased with WWE over certain decisions regarding video game content and both sides might be ready to break off their working agreement after this year. Jakks is apparently complicating matters, so THQ filed a lawsuit to prevent Jakks from making a decision for them. Like I said, it's a giant mess. It's also why you stick to a singles match agreement instead of trying to book a three-way dance.
Link:Jakks press release.
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