Yu-Gi-Oh! Zexal Licensing Held-up

United States Bankruptcy Judge Shelley Chapman has ordered Yu-Gi-Oh franchise owners TV Tokyo and NAS to temporarily halt any and all licensing negotiations regarding the Yu-Gi-Oh franchise while North American rights to the title are in dispute. NAS’ parent company ADK had intended to solicit licensing offers for the current Yu-Gi-Oh! Zexal series at this month’s Licensing Expo International trade convention.

Last March, TV Tokyo & NAS retracted 4Kids’ Entertainment’s North American distribution rights to the Yu-Gi-Oh franchise, claiming that 4Kids’s had fraudulently avoided paying royalties on the license. 4Kids’ filed a countersuit, claiming that TV Tokyo & NAS negated with licensing contract without adequate advance notice, therefore the cancelation should be invalid and 4Kids’ should retain legitimate North American distribution rights to the Yu-Gi-Oh franchise.

The lawsuit will proceed in two phases. The trial will first concentrate on the validity of TV Tokyo & NAS’ retraction of 4Kids’ distribution rights. The second phase will concentrate on the accusation that 4Kids’ owes royalties to TV Tokyo & NAS. The trial will begin on August 29.

Source: Anime News Network