|THQ has "prevailed" in WWE royalty dispute with Jakks, gets +4%|
|Posted: 28.07.2009 10:39 by Simon Priest||Comments: 0|
A long standing legal dispute between THQ and Jakks Pacific, at least in terms of royalty fees, is finally over with an arbitrator favouring the publisher.
THQ and Jakks are still challenging one another in the court room though, with the former upset over the latter's decision to extend the contract with WWE until December 31st, 2014.
"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's James Kennedy, reports .
Jakks Pacific now earns only 6 percent of royalties, down from the 10 percent they earned before the dispute - this decision is retroactive. THQ expect to see a one-time benefit of $23 million during Q2 of fiscal 2010 thanks to the ruling.
Now THQ want the decision made by Jakks Pacific, who believes they are well within their rights to extend the contract with WWE, to be overturned because the publisher is yet to commit to a decision.