Toy maker Jakks Pacific has clashed with publisher THQ over the pair’s joint venture World Wrestling Entertainment (WWE) license.
Jakks said in a statement that it had notified WWE of its intention to renew the license, which would otherwise expire on December 31, 2009, for an additional five year term.
THQ then argued that Jakks didn’t have the right to exercise its option to renew the license without the publisher’s consent. THQ proceeded to file a lawsuit against the company in a California court, seeking a declaratory judgment that Jakks was not authorised under the parties’ joint venture agreement to unilaterally issue a renewal notice to WWE.
THQ also asked the court to declare that it has no obligation to consent to a renewal of the WWE license, and disputed a term of the joint venture agreement prohibiting the firm from publishing any wrestling games for one year after the termination of the WWE license.