Game publisher THQ and its joint-venture partner Jakks Pacific are in the midst of a little legal grappling at the moment that could impact the next year or so of development on future WWE games.

As Reuters reports, THQ filed a lawsuit against Jakks after the company extended its joint videogame licensing agreement with World Wrestling Entertainment Inc. without THQ’s consent. Jakks of course says it was well within its legal rights to make this decision without first consulting THQ, while THQ obviously disagrees. Jakks' new agreement would extend the licensing for another five years, and THQ apparently had not yet decided whether it wanted to extend the licensing deal at all.

The real kicker is that Jakks’ secret deal prohibits THQ from releasing a wrestling game for at least a year after the WWE license expires, should the company decide to pull out of its partnership with Jakks. However, THQ says that this restriction is unenforceable under California law, so there's that.

Yet for all the hooting and hollering, there’s a good chance the suit will be resolved without too much fanfare, considering arbitration proceedings are currently underway. Although, both companies apparently make around $20 million a year from the WWE partnership, so there’s a chance that some blood might be drawn, but don’t expect much.

Source