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Published in Gaming

THQ puts the smack down on Jakks

by on28 July 2009

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Arbitration yields results in WWE disagreement

The running feud between THQ and Jakks took another turn that has THQ claiming victory. Binding arbitration between the two parties has yielded a decision that Jakks is only entitled to six percent of the sales of the take from the WWE titles, rather than the ten percent that Jakks claimed to be entitled.

The decision is retroactive from July 1st, 2006 and runs through this year, according to our sources. The news will have THQ getting an unexpected additional 23 million during its fiscal 2010 quarter that ends in September.

While this decision does not deal with Jakks’ position that they intend to renew their license with the WWE to continue to produce wrestling titles based on the WWE IP, it does seem to indicate that the new rate could be more workable for the company who has complained that they are being squeezed by Jakks and the franchise thus isn’t as profitable as it could be. While THQ has the latest WWE 2010 game set to arrive later this year, the future is still unclear moving forward; but the decision will likely create some additional problems between the two companies.

Some sources claim that there is talk that if THQ is unable to reach a deal for the WWE license, it could instead turn its attention to the Midway-owned TNA Wrestling license, which is currently still available for purchase. The switch, however, would require some additional wrangling, as sources say that a clause in the THQ contract prohibits them from working on another wrestling title. At the moment, however, THQ does not seem to view this as a problem, according to the whispers we have heard and nothing has been sorted out as of yet.

Last modified on 28 July 2009
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