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Publisher expects a one-time benefit of $23 million from ruling. By Kat Bailey, 07/27/2009
"As we expected, we have prevailed in this matter. We are gratified the arbitrator agreed the preferred return rate to Jakks Pacific on WWE video games will be significantly lower," said THQ executive vice president of business and legal affairs James Kennedy.
Jakks Pacific was originally entitled to 10 percent of the sales of all THQ WWE-based games, but now they will receive six percent of the proceeds. The decision is effective for the period between July 1, 2006 and December 21, 2009. THQ expects to make an additional $23 million from the ruling.
THQ and Jakks have had a number of disagreements since kicking off their joint venture in 1999. THQ recently filed a lawsuit accusing Jakks of unilaterally extending the joint WWE licensing deal without the publisher's consent. That case is ongoing.
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