WWE extends deadline for THQ license agreement renewal

THQ has been granted an extension by World Wrestling Entertainment for the deadline to renew the joint licensing agreement held with JAKKS Pacific. The new deadline is Dec. 31, 2009. If the agreement is renewed and extended it would be good until Dec. 31, 2014. Obviously THQ needs to continue to hold this license to make any more of its SmackDown vs. RAW video games.

THQ said in a brief statement today that the “WWE’s action provides the company with increased flexibility with respect to the renewal of the videogame license.”

No doubt the biggest hurdle for THQ is its tumultuous relationship with JAKKS Pacific, who it has taken legal action against in regards to its share of revenues from products based on the license. We watch and we wait.

THQ prevails in WWE licensing dispute

THQ announced this afternoon that it has prevailed in an arbitration hearings against JAKKS Pacific, the company’s partner in a joint venture meant to deal with the WWE license related to video games. The binding arbitration, which was in the terms of the operating agreement should both parties not agree, came to the conclusion that JAKKS Pacific should have been given a lower preferred return payment for WWE video games sold under a license granted by World Wrestling Entertainment to the joint venture, THQ/JAKKS Pacific LLC.

As a result, a new rate, which is 40 percent below the previous rate, reaches all the way back to July 1, 2006 and applies through December 31, 2009. Because of this, THQ will receive approximately $23 million during the fiscal 2010 second quarter ending September 30, 2009.

Under the terms of the HQ/JAKKS Pacific LLC. operating agreement, JAKKS Pacific was to be paid a preferred return from sales of the LLC’s WWE-licensed video games. The preferred return rate was to be reset for the period beginning July 1, 2006 through December 31, 2009 but both companies could not agree on a new preferred return rate. Because of this THQ filed a suit to compel arbitration pursuant to the terms of the operating agreement.

Naturally THQ is happy about this and will continue to reap the rewards from the SmackDown vs. RAW series as well as Legends of WrestleMania.

JAKKS, THQ brawl over WWE licensing issues

I hate when people fight, but that’s just what is happening this morning between THQ and JAKKS Pacific over the World Wrestling entertainment license. JAKKS announced this morning that it had given notice to the WWE that it would extend the license to the popular sports entertainment franchise. Meanwhile in a court across town, THQ went to court to dispute the license renewal. The legal wrangling, in the form of a short press release can be found below:

JAKKS Pacific, announced that it has notified World Wrestling Entertainment, Inc. (“WWE”) that the joint venture between THQ and JAKKS intended to exercise its option to renew the WWE videogame license, which would otherwise expire on December 31, 2009, for an additional five (5) year term ending December 31, 2014. Separately, THQ commenced a lawsuit in California Superior Court, Los Angeles County, claiming it was not ready to make a decision with respect to renewal of the WWE videogame license, and seeking a declaratory judgment that (i) JAKKS was not authorized under the parties’ joint venture agreement to unilaterally issue a renewal notice to WWE, (ii) THQ has no obligation to consent to a renewal of the WWE license, and (iii) the restrictive covenant in the joint venture agreement prohibiting THQ from publishing any videogames based on wrestling during the term of the joint venture agreement (expiring one year after termination of the WWE license) is unenforceable under California law. JAKKS and THQ have also initiated arbitration proceedings relating to these issues.

Zoo Publishing Scores Empire Assets Rights

Zoo Publishing has inked a deal with New World IP to license, publish, and distribute the catalog of video game software previously published and developed by Empire Interactive Europe Limited (Empire). The agreement allows Zoo Publishing the ability to re-release previous Empire titles, to port previously released games to new platforms, and to create new gaming content from existing Empire intellectual property. Empire recently went into receivership after some serious financial troubles.

Earlier this week, KPMG Restructuring was appointed as Administrators of Empire. The London-based publisher, ceased trading after the appointment, and several staff members have been retained to assist KPMG with the wind down of the business. Empire’s intellectual property rights have been sold to New World IP, LLC, which is based in the US. New World IP, LLC has licensed the intellectual property rights, on an exclusive basis, to Zoo Publishing.

Valve vs. Activision: Cyber Cafe Wars

In buying Vivendi Universal Games, Activision got Blizzard, Sierra, VU Games, a number of development studios, several prominent game franchises and an old lawsuit. That lawsuit was supposedly settled in arbitration between Sierra and Valve. Enter Activision. The world’s biggest game publishers has decided that it doesn’t want to pay the price tag of the lawsuit and has taken Valve back to court to fight it.

What lawsuit? You may remember that Valve and Sierra once had a cozy relationship; the company published many of its biggest and best titles and both companies made lots of cash. One thing Sierra did not have the rights to mess around with were Valve’s games licensing business with Cyber Cafe’s. This lead to a 2002 cybercafé licensing dispute between Valve and Sierra, which in turn lead to a lawsuit.

Valve prevailed and both companies agreed to abide by arbitration. The result being a judgment of $2,391,932. But Activision decided to pay the company only $1,967,796. Why? Because Activision alleges that Valve was over-paid $424,136 in the last few years. So the fight will continue for a little while longer while they hash this out.

You can understand why Valve uses Steam to do most of its business and handles all of its licensing deals in-house.

Thanks G4TV

NetEase Scores WOW Contract

Blizzard Entertainment announced this morning a World of Warcraft licensing deal in Mainland China with NetEase. NetEase and Blizzard have worked to bring other games to the region - last summer the companies announced a deal to bring Warcraft III, StarCraft II, and its Battle.net gaming platform.

Today’s freshly announced deal is a three year contract that will see NetEase handle the game in the region including server support, customer support and applying game updates and content as directed by Blizzard.

Blizzard said that the deal will ensure a more stable product for the region - just like other regions around the world.

Lord of the Rings Rights: Coming Home?

Variety’s Blog is reporting that the video game rights to The Lord of the Rings have returned to Warner Bros. - or at least that is how it looks. EA’s rights to the popular franchise expired at the end of last year, but EA managed to wrangle an extension in March of last year with license holder Tolkien Enterprises until the end of 2008 so that it could finish work on Pandemic’s The Lord of the Rings: Conquest.

With that game released in January of this year, the rights to LOTR were in question. EA held those rights for seven years, with the only games made outside the company being Turbine’s The Lord of the Rings Online MMO games (Warner Bros. holds an equity stake in Turbine).

So now that Warner Bros. has the rights back, it makes logical sense that its video game development and publishing unit, Warner Bros. Interactive Entertainment, would take the reins and use the license to create some unique games. Variety uses some logic and some inside sources to come to this conclusion, and it is hard to argue that this isn’t where the license is going.

The question is, what will Warner Bros. Interactive Entertainment do with these rights? With two “Hobbit” movies in the works at New Line - which are being produced for MGM for 2011 and 2012 - you can bet some game tie-ins are planned.

thanks, Variety.