WWE's latest THQ suit detailed

By Brendan Sinclair, GameSpotPosted Oct 23, 2006 2:16 pm PT

Wrestling company claims publisher has been illegally sublicensing out rights it doesn't have for the last five years, wants option to terminate long-term contract.

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."

109 Comments

  • Shadow_Spinner

    Posted Oct 31, 2006 6:22 pm PT

    As long as Yukes still makes the game I don't give a crap about who puts it in a box.

  • SiKh22

    Posted Oct 30, 2006 3:45 pm PT

    : (

  • tartar23

    Posted Oct 30, 2006 1:04 am PT

    WWE is too greedy - THQ made the franchise a HIT specially with WWE Smackdown : HTCP - WWE won't even hit the higher grounds in Video Game market if it wasn't for THQ , this is like a Stab in the back - shame on WWE , I say THQ dump the WWE brand & make a rumble street wrestler of your own - let's see WWE come up with a better money making idea next time .

  • tmack24

    Posted Oct 29, 2006 1:52 pm PT

    the way i see it thq-jakks has made the wrestling games fun and exciting. while on the other hand aki has also did they part now if only just as an idea thq-jakks-aki teamed and made the game what would yall think then? lol just a hypothetical question. Now look at the EA games look wat they are doing to madden and live both arent pulling they weight i think if anything 2k sports should have a shot at the license cause EA games just suck. But i'd prefer thq to keep it got every wrestling game they made from ps to ps2 even the bad ones for the xbox raw series lol but thq need to keep the license

  • CENA125

    Posted Oct 28, 2006 10:52 pm PT

    You know i don't think wwe even care about there games you know the just want the money so i dont think THQ is going to Smackdown Vs Raw 2008 which will suck because they have been making almost every wrestling game there is today.So WWE stop thinking about the money for a minute and think about fans that buy these games.

  • _Sam_

    Posted Oct 28, 2006 7:10 pm PT

    what next

  • spiderman2007

    Posted Oct 28, 2006 3:31 pm PT

    the games 2 this point have never been bad, just okay games. akl would be a better fit & more inivative.

  • Col-Neil

    Posted Oct 28, 2006 10:07 am PT

    Were's my nine iron Vinces head needs to be hit with it several times

  • MartinMan

    Posted Oct 25, 2006 3:14 pm PT

    God EA Sucks!
    I hope we don't get stuck with those idiots if THQ loses their exclusive deal.

  • ssn560

    Posted Oct 25, 2006 11:21 am PT

    "Look up WCW Mayhem (the wrestiling game that they contemplated getting rid of the ring entirely???) "

    WCW Mayhem is a great game.

  • angelus_2kuk

    Posted Oct 25, 2006 8:55 am PT

    Bring back AKI!

  • GrimBee

    Posted Oct 24, 2006 3:50 pm PT

    The sneaky thing is that WWE knows that thq made a tonne of money from this, so i GUARANTEE you that WWE will offer to purchase THQ to foot the bill, or at least have some total control over something THQ does.

    I mean, WWE usually has a great business head on its shoulders, and to pass up THQ would be very stupid.

    It's all part of a bigger plan, vince isnt sony

  • thefjk

    Posted Oct 24, 2006 2:53 pm PT

    Coool!

  • MadGamer132

    Posted Oct 24, 2006 1:49 pm PT

    hmmmmm, it is okay to handle this, please. i don't know what's next.

  • Ebigmike2003

    Posted Oct 24, 2006 10:46 am PT

    yea AKI made the best wwf games ever. Thats why DEF JAM fight for NY was so good, because AKI helped make it.

  • jacash3492

    Posted Oct 24, 2006 10:38 am PT

    im pretty sick of the WWE putting out these lamea$$ cases because they need the money to hire better scriptors. WWE is a good company, but relies to much on cash, and not on entertainement. What they are not gettign is that if they sue THQ an Jakks, then they will lose more profit because at least 30 or 40 percent of some of the profits get donated to them. Money can be the route of all evil.

  • supersnake68

    Posted Oct 24, 2006 9:51 am PT

    "No, if it WASN'T for the money he'd be a dumBass."

    very well put

  • ricsuave

    Posted Oct 24, 2006 9:46 am PT

    "WHY VINCE WHY! its all for the money huh vince...you are a dumass"


    No, if it WASN'T for the money he'd be a dumBass.

  • UnsolvedParadox

    Posted Oct 24, 2006 9:31 am PT

    Hope this doesn't delay the upcoming release...

  • Tony-Baxter

    Posted Oct 24, 2006 9:31 am PT

    Give it back to AKI!

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