Defunct author THQ is suing Electronic Arts and Zuffa, the parent firm of the Last Combating Championship (UFC), over the UFC video recreation license, which THQ beforehand held and EA now possesses.
In the complaint, which THQ filed on Oct. 4 in U.S. District Court docket in Delaware, THQ alleges that EA and Zuffa labored collectively to result within the termination of THQ’s licensing agreement with Zuffa for the UFC series, as successfully as the transfer of that agreement to EA.
THQ originally signed a licensing agreement with Zuffa in January 2007 to fabricate UFC video games. Below the deal, the author launched three successfully-obtained UFC titles: UFC Undisputed 2009 (Might 2009), UFC Undisputed 2010 (Might 2010) and UFC Undisputed 3 (February 2012). But by 2011, THQ used to be struggling financially, and per the complaint, the author began to explore alternatives corresponding to a sale to an out of doors firm.
EA and THQ had “several discussions” in early December 2011 about this form of sale, says THQ within the complaint. Sooner than EA broke off the talks later that month, THQ shared “internal financial data, along with detailed sales and income figures for the UFC franchise, and projected marketing and marketing expenditures on the next UFC franchise recreation,” with EA.
EA and THQ had “several discussions” about a sale in early December 2011
On the pinnacle of December 2011, Zuffa despatched THQ a letter announcing it wished to cease the licensing agreement ensuing from of THQ’s financial difficulties. In the complaint, THQ says the letter led the firm to have confidence that EA had equipped Zuffa with data about THQ’s budget — exiguous print that EA also can finest have gotten from its confidential discussions with THQ about buying out the firm. Right here’s how THQ thinks it went down:
“Earlier than the Ask Letter, EA contacted Zuffa, told Zuffa of THQ’s perilous financial situation and expressed curiosity in acquiring the UFC franchise at once from Zuffa, causing Zuffa to threaten termination of the UFC license.”
THQ ended up transferring the UFC license to EA in June 2012, about six months before declaring economic extinguish. Zuffa paid THQ $10 million for the termination of their existing agreement and for the license of THQ’s UFC-connected intellectual property, per the complaint. THQ believes that at the time, the UFC franchise used to be price as a minimum $20 million and stir bigger than that to EA.
In the complaint, THQ is charging that the UFC license changeover used to be a false transfer under U.S. economic extinguish rules. The firm is additionally alleging that EA, by sharing THQ’s confidential financial data with Zuffa, dedicated “tortious interference” with the licensing agreement between THQ and Zuffa. THQ is looking for the nullification of the transfer and the recovery of the intellectual property — or the price of it — as successfully as damages amounting to as a minimum $10 million.
THQ is looking for damages amounting to as a minimum $10 million
To boot, THQ wants EA to “turnover [sic] the profits of the UFC franchise,” and desires the court docket to disallow Zuffa’s economic extinguish claims in opposition to THQ, which amount to $1.96 million. Below EA’s original agreement with Zuffa, the author is producing EA Sports activities UFC (image above), which is decided for commence subsequent spring on Xbox One and PlayStation 4.
“We predict about these claims are with out merit,” said an EA spokesperson in an electronic mail to Polygon. A representative for THQ advised Polygon the firm also can now now not touch upon pending litigation. We now have reached out to the UFC for comment and would possibly perhaps aloof change this text with any data we receive.
We now have uploaded a PDF of the fats complaint; that you just can read it at the source hyperlink below.
