Details Provided Of WWE’s Lawsuit Against THQ

Video Game Law Blog

October 24, 2006

We reported on October 19 that World Wrestling Entertainment Inc. ('WWE"?) has once again sued video game publisher THQ. Now, details of WWE's claim are available.

In essence, WWE seeks to terminate its long-term video game licensing contract on the basis that, for the last five years, THQ has been illegally sublicensing out rights it doesn't have. More specifically, WWE claims that the license agreement in question was not with THQ at all, but rather with THQ-Jakks Pacific, a separate joint venture half-owned by THQ and half by WWE's toy license-holder, Jakks Pacific.

WWE claims that THQ, without authorization, sub-licensed rights to SmackDown! franchise developer Yuke's, the Asian distributor of WWE games, and that THQ collected royalties from Yuke's that belonged to WWE.

Coverage at (Gamespot)