THQ and JAKKS Pacific Conflict Finally Enters Arbitration
THQ and JAKKS Pacific have been in a long-running dispute over the royalties for THQ's WWE video games and THQ's right to continue making such games. According to THQ, JAKKS is primarily responsible for current delays in the process (JAKKS disagrees) due to its effort to get the California Court of Appeals to disqualify arbitrators. That effort has been denied by the court.
THQ's assessment of the situation is that the royalties due to JAKKS as part of the joint venture that covers WWE games is determined by agreement between the two. If the two companies can't come to an agreement, the royalties are to be determined by arbitration. THQ filed a motion in the California Superior Court to compel arbitration. The court appointed an arbitrator and JAKKS attempted to have the arbitrator disqualified. Now, due to the latest ruling, arbitration over the dispute can proceed. Resolution of this matter is critical to confirming THQ's revenues from wrestling games.
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