THQ files lawsuit on Jakks Pacific for extending WWE contract
Publisher disputes Jakks was authorised to make a decision to renew on behalf of both companies
THQ has filed a lawsuit against Jakks Pacific accusing its WWE partner of extending the official WWE contract without its permission.
Jakks confirmed its intention on Wednesday to renew the WWE game licence, extending the contract for another five years to December 31, 2014.
However, Gamesutra reports the move has angered THQ which says the toy maker wasn't authorised to make the decision on behalf of both companies. THQ now says it is under no obligation from the contract. The publisher also disputes a term of the current contract that disallows it from publishing any wrestling videogames for at least a year after the termination of its deal with WWE.
THQ has been publisher of the WWE series since 2000. The licence has however induced a number of conflicts. Earlier this year, the WWE lost an appeal in an ongoing legal battle against both Jakks Pacific and THQ alleging bribery, antitrust and conflict of interest, among other charges, and in 2006, THQ and Jakks went to court to settle a mutual dispute over royalties.
Jakks has confirmed it has entered arbitration proceedings with THQ over the current issue of the licence's renewal.