WWE claims against THQ dismissed

Supplier plans to appeal Connecticut court's decision

By Danny King -- Video Business, 9/3/2008

SEPT. 3 | Most of World Wrestling Entertainment's claims against videogame publisher THQ, stemming from bribery allegations related to a licensing agreement, were dismissed by the Connecticut superior court last week.

WWE alleged that a licensing agreement with a joint venture of THQ and toymaker Jakks Pacific should be voided because of what WWE says was Jakks' bribery of a WWE licensing agent and employee.

WWE still has claims against THQ relating to agreements with Japan-based games developer and distributer Yuke's Co, THQ said in a statement.

WWE filed the suit in October 2004, saying at the time that, among other things, side payments were made to an overseas bank account of WWE licensing agent Stanley Shenker. WWE and Jakks entered into a toy-licensing agreement in 1995, while the THQ/Jakks partnership entered into an videogames agreement with WWE three years later, WWE said in 2004. The THQ agreement was set to expire next year.

THQ has eight WWE-branded videogames, according to its Web site. The company, which had $1.03 billion in sales for the year ended March 31, shipped 6 million copies of WWE SmackDown vs. Raw 2008 and will release WWE Legends of Wrestlemania early next year.

WWE said last week it would appeal the decision.

"The decision today from Connecticut State Court says that the prior federal court decision in this matter precludes the Connecticut court from allowing WWE to present our case on the merits," WWE said in an Aug. 29 statement. "We believe the federal court decision was wrong and are taking steps to have it corrected on appeal."