THQ takes legal action against UFC and EA over UFC computer game license

Defunct publisher THQ is taking legal action against Electronic Arts and Zuffa, the moms and dad business of the Ultimate Fighting Championship (UFC), over the UFC computer game license, which THQ previously held and EA now has. In the problem, which THQ submitted on Oct. 4 in U.S. District Court in Delaware, THQ declares that EA and Zuffa collaborated to cause the termination of THQ’s licensing arrangement with Zuffa for the UFC series, along with the transfer of that contract to EA. THQ initially signed a licensing arrangement with Zuffa in January 2007 to produce UFC computer game. Under the offer, the publisher launched 3 popular UFC titles: UFC Undisputed 2009 (May 2009), UFC Undisputed 2010 (May 2010) and UFC Undisputed 3 (February 2012). By 2011, THQ was having a hard time economically, and according to the grievance, the publisher started to check out alternatives such as a sale to an outdoors business. EA and THQ had “numerous conversations” in early December 2011 about such a sale, states THQ in the problem. Prior to EA broke off the talks later on that month, THQ shared “internal monetary info, consisting of in-depth sales and income figures for the UFC franchise, and forecasted marketing expenses on the next UFC franchise video game,” with EA. EA and THQ had “numerous conversations” about a sale in early December 2011 At the end of December 2011, Zuffa sent out THQ a letter stating it wished to end the licensing arrangement due to the fact that of THQ’s monetary problems. In the problem, THQ states the letter led the business to think that EA had actually offered Zuffa with details about THQ’s financial resources– information that EA might just have actually obtained from its personal conversations with THQ about purchasing out the business. Here’s how THQ believes it decreased: “Prior to the Demand Letter, EA gotten in touch with Zuffa, notified Zuffa of THQ’s risky monetary condition and revealed interest in getting the UFC franchise straight from Zuffa, triggering Zuffa to threaten termination of the UFC license.” THQ wound up moving the UFC license to EA in June 2012, about 6 months prior to stating insolvency. Zuffa paid THQ $10 million for the termination of their existing arrangement and for the license of THQ’s UFC-related copyright, according to the problem. THQ thinks that at the time, the UFC franchise deserved a minimum of $20 million and likely more than that to EA. In the problem, THQ is charging that the UFC license changeover was a deceitful transfer under U.S. insolvency law. The business is furthermore declaring that EA, by sharing THQ’s personal monetary details with Zuffa, devoted “tortious disturbance” with the licensing arrangement in between THQ and Zuffa. THQ is looking for the nullification of the transfer and the healing of the copyright– or the worth of it– in addition to damages totaling up to a minimum of $10 million. THQ is looking for damages totaling up to a minimum of $10 million In addition, THQ desires EA to “turnover [sic] the revenues of the UFC franchise,” and desires the court to prohibit Zuffa’s insolvency claims versus THQ, which total up to $1.96 million. Under EA’s brand-new arrangement with Zuffa, the publisher is producing EA Sports UFC (image above), which is set for release next spring on Xbox One and PlayStation 4. “We think these claims lack benefit,” stated an EA representative in an e-mail to Polygon. An agent for THQ informed Polygon the business might not talk about pending lawsuits. We’ve connected to the UFC for remark and will upgrade this post with any details we get. We’ve submitted a PDF of the complete problem; you can read it at the source link listed below.
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