Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
August 29, 2014
arrowPress Releases
August 29, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM Tech sites:


THQ sues EA and UFC over transfer of license
THQ sues EA and UFC over transfer of license
October 9, 2013 | By Christian Nutt

October 9, 2013 | By Christian Nutt
Comments
    4 comments
More: Console/PC, Business/Marketing



Electronic Arts snagged the license for the Ultimate Fighting Championship before THQ tanked -- and now THQ is alleging that this is the result of unfair behind-the-scenes dealing.

According to a filing in the United States District Court for Delaware, THQ alleges that after the company discussed a potential purchase of the franchise with EA, EA went behind its back and instigated trouble with Zuffa, the owner of the UFC brand.

THQ says that two weeks after EA broke off negotiations for the UFC license in December 2011, it received a letter from Zuffa expressing dissatisfaction with THQ's proposed marketing expenditure for the next game in the franchise -- information that had only been shared with EA at that point.

Zuffa ended up breaking its contract with THQ, giving the publisher a $10 million payout for its trouble; THQ contends that the license was worth at least $20 million at the time. However, thanks to the difficult position it was in, it had "no choice" but to enter into an agreement with Zuffa.

EA ended up nabbing the UFC license in June of 2012, six months before THQ ultimately filed for bankruptcy.

THQ is also alleging that the transfer of the license was fraudulent under California bankruptcy law, as it was insolvent at the time this transfer took place. It's seeking to recover the license -- and also hoping to capture EA's profits from the UFC franchise, too.

Polygon reports that neither THQ nor EA are so far willing to comment on the case. The full complaint is available online.


Related Jobs

Retro Studios - Nintendo
Retro Studios - Nintendo — Austin, Texas, United States
[08.29.14]

Senior Tools Engineer
Retro Studios - Nintendo
Retro Studios - Nintendo — Austin, Texas, United States
[08.29.14]

AI Engineer
Retro Studios - Nintendo
Retro Studios - Nintendo — Austin, Texas, United States
[08.29.14]

FX Artist
Blizzard Entertainment
Blizzard Entertainment — Irvine, California, United States
[08.29.14]

Compatibility Analyst










Comments


Joseph Huckaby
profile image
The link to the full THQ complaint is not working. The error is "Access Denied".

http://cdn3.sbnation.com/assets/3362185/thq-v-zuffa-ea-complaint.
pdf%3C/a

AccessDenied
Access Denied

Ian Stitzlein
profile image
Wait...EA bought the license in June, but THQ wants it back because the transfer did not happen till after THQ filed for bankruptcy? Can someone explain how this is legal?

Christian Nutt
profile image
No -- the company argues that it was insolvent at the time of transfer. I'm not qualified to comment on the legality of this, but it is arguing that it was insolvent under California law even though the company had yet to declare bankruptcy.

Andrzej Marczewski
profile image
All seems a little desperate and pointless at this stage. Not what the industry needs.


none
 
Comment: