THQ wins in Jakks arbitration case

THQ has announced that the California Court of Appeal has thrown out Jakks Pacific's attempt to disqualify arbitrators in an ongoing dispute over the royalty rate to be paid by THQ for WWE-licensed videogames.

The dispute, dating back to July 1, 2006, centres on delays in appointing those arbitrators, and THQ had filed an action in the California Superior Court to compel arbitration - but Jakks had then appealed to the California Court of Appeals to "disqualify all but one of the potential arbitrators considered by the judge," a THQ statement read.

That appeal found in favour of THQ, and the process can now move forward.

THQ executive VP for business and legal affairs, James Kennedy, wanted to set the record straight on the background.

"Contrary to Jakks Pacific's statements that the arbitration process has been slowed for 'a host of reasons,' the sole cause of delay has been Jakks," he said. "We believed Jakks' position in its petition from the judge's appointment of an arbitrator was wrong, and the Court of Appeals has now agreed.

"As we have stated since we filed suit to compel arbitration and appoint an arbitrator, we look forward to moving the arbitration process forward expeditiously, and we expect to prevail once an arbitrator has the opportunity to consider the facts in this matter."

Additionally the statement noted that THQ, not Jakks Pacific, was the "party responsible" for the operations of the joint venture, and as Jakks was "not actively involved" any statements it made were not therefore made from such a standpoint.

THQ president and CEO, Brian Farrell, added: "The WWE is a tremendous brand and we have consistently grown this franchise in the video game space on a global basis, with life-to-date sales of more than USD 1 billion. We are excited about the continuing potential of this brand."