View Full Version : WWE Sues THQ
NintendoMan
10-20-2004, 11:02 AM
Read it here:
http://gameboy.ign.com/articles/558/558304p1.html
I post this because me and like many others I know, only like the THQ wrestling games. I have been with THQ since WCW VS. NWO on N64 all the way to DOR for the GC. Just EVERYTHING is better with THQ games, espcially the controls. (I don't know where I'll go for wrestling games now???)
And now there are talks of the WWE ending the relationship between the two companies, which would almost guarantee happen if the WWE pursues the case and wins.
Aww, man. I'm a big fan of THQ wrestlers too... :/
Well, hopefully they won't give the license back to Acclaim.
Aww, man. I'm a big fan of THQ wrestlers too... :/
Well, hopefully they won't give the license back to Acclaim.
Somehow I think that will never happen.
Cmosfm
10-20-2004, 11:42 AM
Aww, man. I'm a big fan of THQ wrestlers too... :/
Well, hopefully they won't give the license back to Acclaim.
Somehow I think that will never happen.
*rimshot*
poisonidea
10-20-2004, 12:36 PM
after they split with AKI, the game turned horrible
the ones for 64 were amazing though
Half Japanese
10-20-2004, 12:51 PM
I just think it's hilarious seeing the phrase "the WWE's intellectual property."
Classic.
Pantechnicon
10-20-2004, 01:40 PM
Have you seen who's representing WWE in the suit?
http://img.photobucket.com/albums/v255/pzcortez/IRS_-_Lawrence_Michael_Rotunda_03.jpg
If I were THQ, I'd settle. But that's just me...
studvicious
10-20-2004, 02:20 PM
Have you seen who's representing WWE in the suit?
LOL!!!!!!!! :) That was a good one.
chadtower
10-20-2004, 02:45 PM
That guy is an accountant.
jaybird
10-20-2004, 02:47 PM
after they split with AKI, the game turned horrible the ones for 64 were amazing though
Yep, I was tricked into thinking THQ was the mastermind behind the N64 games.
Nope. AKI were the guys responsible.
I haven't enjoyed a THQ wrestling game since No Mercy. I still shudder when I think about playing WWE Raw for Xbox.
studvicious
10-20-2004, 02:49 PM
yeah, good 'ol "I.R.S." but it's still funny ;)
SegaAges
10-20-2004, 04:20 PM
dude, the only reason why i own def jam vendetta is because aki was behind it and used their incredible engine (well, it is also cool to fight with members of the wu tang clan)
SoulBlazer
10-20-2004, 04:45 PM
Am I missing something here? :hmm:
WWE is suing because they were unhappy with some of the deals that one of their former execs and a advertising agency made with a couple companies? And they are using the RICO clause -- which is VERY HARDLY used -- to get them declared null and void?
If they regret this so much, why not re-negoiate the deals again?
This does'nt make any sence. x_x
VinnyT
10-20-2004, 05:38 PM
http://smackdown.wwe.com/superstars/rico/images/rico.jpg
Rico clause? :hmm:
jerkov
10-20-2004, 06:09 PM
PLEASE, PLEASE give this license back to Aki. As many have pointed out, there hasn't been a good WWE game since the N64! I still will never understand why THQ kicked out AKI and let Yuke's make all the games - I mean, compare the Smackdown games on PSX to the N64 titles. Actually, forget it, because there IS NO COMPARISON - AKI owns Yuke's, hands down.
NintendoMan
10-20-2004, 08:10 PM
Have you seen who's representing WWE in the suit?
http://img.photobucket.com/albums/v255/pzcortez/IRS_-_Lawrence_Michael_Rotunda_03.jpg
If I were THQ, I'd settle. But that's just me...
LOL
If took me a second to figure that one out!
I.R.S. (I liked him back in the day though)
punkoffgirl
10-22-2004, 10:03 AM
From the GameDaily newsletter today:
WWE lays the smackdown
Jakks' Stock Piledrived
WWE's lawsuit against Jakks Pacific has caused its stock to plummit. The price dipped more than 30% on Wednesday and was barely any better on Thursday. Can Jakks recover or have they been pinned to the mat?
This week, World Wrestling Entertainment Inc. filed a lawsuit in federal court for the southern district of New York against Jakks Pacific, Inc. and THQ, Inc., which Jakks has a joint venture with to publish and market World Wrestling Entertainment video games. The suit specifically names Jakks CFO Joel Bennett, chairman and CEO Jack Friedman and the company's president and co-founder, Stephen Berman as defendants.
Licenses voided?
Apparently, the suit claims that Jakks bribed a former WWE executive in order to win a lucrative licensing deal, and now WWE is seeking unspecified damages and is also looking to end licensing agreements with Jakks that are the main generators of the company's revenue.
Linda McMahon, Chief Executive Officer of WWE, stated, "We very much regret having to take this action today, but regret even more the facts and circumstances which have compelled us to do so. WWE's intellectual property is a valuable asset of the Company, and we believe the actions taken today are necessary to preserve the integrity of our licensing process and essential to ensure that WWE receives appropriate and fair compensation for the grant of a license to use our intellectual property."
[ "We view the pending lawsuit involving the company and management as a significant threat to the stock," Tony Gikas, PiperJaffray ]
Jakks has been WWE's toy licensee since late 1995 and Jakks and THQ together have been video game licensees for WWE since 1998. Both licenses expire in 2009. However, analysts have indicated that if Jakks is indeed stripped of licensing deals for wrestling toys and games, it could have a terrible financial impact.
Official company line
Needless to say, Jakks would like to prove its innocence. The company issued the following statement:
"The Company denies any allegations of wrongdoing and believes that it will be completely vindicated in the litigation, and looks forward to having the claims against it dismissed. The Company will continue to devote its full energies and resources to bringing its outstanding products to market during the busy holiday season and beyond."
Although THQ is named in the suit, the company has less to worry about since it was not specifically cited for any wrongdoing. THQ offered the following comment:
"THQ is committed to preserving its rights under the videogame license with the WWE. THQ believes the WWE is pleased with the manner in which THQ has managed their brand in the video game category. As THQ is not directly accused of any wrongdoing in the complaint -- rather the complaint alleges wrongdoing on the part of JAKKS Pacific and others of which THQ was and is unaware -- THQ is not in a position to comment on these allegations. In any event, either there is no basis for terminating the video game license, or THQ expects to be made whole by those whose conduct is eventually found to be unlawful. THQ intends to vigorously protect and pursue its rights, if necessary.
The lawsuit has no effect on games currently scheduled for release, including WWE SmackDown! vs. Raw, which is scheduled to ship on November 2."
Jakks' stock plummits
For Jakks, though, things aren't too bright at the moment.
Garrett Edson, an analyst at Whitaker Securities, said in an investor's note, "The filing of the lawsuit and the naming of CEO Jack Friedman, President Stephen Berman and CFO Joel Bennett as defendants is a direct shot at top management's credibility and causes great uncertainty in the future of the company."
Tony Gikas, an analyst at PiperJaffray, added, "We view the pending lawsuit involving the company and management as a significant threat to the stock."
Indeed, whether guilty or innocent, investors are quite worried and Jakks is already feeling the effects. Shares of the company fell 31% on Wednesday. Jakks lost nearly a third of its value, as the stock was pushed down to $12.96. THQ was hurt as well, but much less so—its shares fell 5% to $17.24.
Worse yet, there's also the possibility of a domino effect if other companies (e.g. Disney, Nickelodeon) that have licensing deals with Jakks decide they want out too.
Until this lawsuit appeared, it was pretty much smooth sailing for Jakks. For the quarter ended September 30, 2004, the company reported income and sales that more than doubled their numbers from a year ago—income increased from $9.6 million to $23.8 million and sales improved from $90.3 million to $206 million.
Jakks' stock price ended at $13.54 (up 0.58) at the close of the market on Thursday.
SoulBlazer
10-22-2004, 10:10 AM
Thanks, POG.
That article explained things MUCH better then the original article did. Now I understand what is going on and where the WWE is coming in trying to use the RICO clause.
Okay, if it's true, Jakk's is pretty much screwed, but I think THQ can get through this with their licences intact. :)