Jakks Pacific-THQ Grudge Match Set to Go to Arbitration

Submitted by Michael Mjanes

The California Court of Appeals has denied a petition by Jakks Pacific Inc. to disqualify potential arbitrators in its ongoing dispute with video game publisher THQ Inc. over royalties. THQ had previously filed an action in the California Superior Court to compel arbitration over the royalty rate owed to Jakks by THQ for WWE video game sales under the THQ/Jakks Pacific joint venture. The royalties are at the center of a long-running fued between World Wrestling Entertainment, THQ and Jakks Pacific. Earlier, the WWE had sued THQ and Jakks Pacific in response to what the WWE called a "commercial bribery scheme". THQ has also launched its own royalty dispute against the toy manufacturer.

Although the main event has yet to be decided, THQ executive VP for business and legal affairs, James Kennedy, said he hoped the arbitration could now proceed expeditiously.

See coverage at gamesindustry.biz.