WWE Battles THQ Over License Use

Publisher THQ has become involved in a new legal wrangle over its use of the World Wrestling Entertainment (WWE) wrestling license, with the license holder claiming “improper sales” of video game titles in Asia. According to a statement issued by THQ and fellow licensor JAKKS Pacific, a lawsuit was filed on October 12th involving a claim previously reported in Securities and Exchange Commission (SEC) filings concerning allegedly improper sales of WWE video games in Japan and other Asian countries. The lawsuit seeks, among other things, a declaration that the WWE is entitled to terminate the video game license and monetary damages. THQ officials have described the lawsuit as being “without merit”, with the company promising to defend itself vigorously. The WWE previously filed a fourteen count complaint against THQ and others alleging “bribery and racketeering” and revolving around the actions of licensor consultants Stanley Shenker & Associates and Bell Licensing. Despite the often rocky legal relationship between THQ and WWE, though, the two companies continue to profit from their relationship, with THQ’s latest SmackDown! title expected to perform as well as previous releases when launched later this year on PlayStation 2, Xbox 360 and PSP.