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THQ has filed suit against Jakks Pacific, the publisher's joint venture partner on the World Wrestling Entertainment licensing deal. The suit comes following what THQ says was an unauthorized extension of the WWE contract, which would extend it to December 31, 2014, Gamasutra is reporting.
Malibu-based Jakks is primarily responsible for WWE-themed toys, and notified the WWE on Wednesday that they were exercising their option for extension. THQ argues that Jakks was not authorized to make the decision on behalf of both companies.
THQ is also disputing a clause that states that they may not published any wrestling video games for one up to one year after the contract is terminated. Jakks representatives say they have entered arbitration with THQ to resolve the issue.
This is not the first time that THQ has had a run in with Jakks. In 2008, the publisher won a suit against Jakks over WWE-related royalties. This past May, the WWE lost an appeal concerning accusations of bribery, antitrust and conflict of interest amongst both parties.
Past games to have appeared include Legends of Wrestlemania and the Smackdown vs. Raw series. WWE Smackdown vs. Raw 2010 is currently scheduled to be released on November 10.