4Kids loses Yu-Gi-Oh! license, accused by TV Tokyo for making a deal with FUNimation

Status
Not open for further replies.

Mikel

No longer active
http://www.animenewsnetwork.com/news/2011-03-29/tv-tokyo-nihon-ad-terminate-yu-gi-oh-deal-sue-4kids

Accuse 4Kids of underpayments & conspiring with Funimation to defraud
--------------------------------------------------------------------------------
On March 24, TV Tokyo and Nihon Ad Systems filed a joint lawsuit against North American media distributor 4Kids Entertainment, accusing the company of "underpayments, wrongful deductions, and unmet obligations" and stating that 4Kids now owes the companies US$4,792,460.36. The Hollywood Reporter website also states that the two companies have terminated their deal with 4Kids.

According to the documents filed by the plaintiffs, the companies conducted an audit on 4Kids' Yu-Gi-Oh! business per their licensing agreement. This audit allegedly uncovered the aforementioned underpayments, as well as a "secret" agreement with Funimation, allowing them to "exploit" the Yu-Gi-Oh! franchise via home video and hide the added income from the plaintiffs. By hiding this income, TV Tokyo and Nihon Ad Systems allege that 4Kids was able to pay them a smaller share than would otherwise have been owed to them. The complaint further alleges that 4Kids attempted to hide the secret deal rather than disclosing it as required by their licensing agreement.

Funimation is not listed as a defendant in the complaint.

Update: According to TV Tokyo and Nihon Ad Systems, the terms of their agreement with 4Kids were such that they would be paid 50% of 4Kids' gross income derived from the Yu-Gi-Oh! franchise. The agreement also allowed 4Kids to enter into licensing agreements for the home video rights for the franchise, provided that they use "customary forms of license agreements."

The plaintiffs allege that 4Kids entered into an agreement with Funimation on March 1, 2002, which granted Funimation "broad right to exploit" the franchise and would pay 4Kids a royalty of 20% of its gross receipts. The plaintiffs then allege that on the same day, the two North American companies entered into a "secret" second agreement for Yu-Gi-Oh! and other titles, under which Funimation undertook the majority of the work releasing home video products and paid 4Kids a US$1.3 million advance and a "service fee" for each sale.

According to the complaint, this service fee added up to US$3.934 million and was not reported as income in 4Kids' quarterly reports. As such, the Japanese companies were not paid royalties from this "kick back."

The complaint further alleges that 4Kids entered into a similar deal with Majesco Entertainment to create Yu-Gi-Oh! videos to be played on Nintendo's Gameboy Advanced portable videogame console. Under this deal, 4Kids paid royalties on the US$366,667 advance paid by Majesco, but reported its $1 kick back per video sold as a service fee, not as income, and did not pay royalties on it.

It's about time! I knew that 4Kids was planning something mischievous with Yu-Gi-Oh!. I wonder what will happen to the English release of the second movie after this.. I mean, it's been dubbed and shopped to theaters, but after this.. I guess it got cancelled.

This may also hint to Yu-Gi-Oh! being purchased by another company (I am crossing my fingers for Viz Media to license the anime, and for Bang Zoom! Entertainment or Studiopolis to provide the new English dub).
 
Last edited:
I laughed, then I laughed some more when I read that yesterday. On one hand we're probably won't see Yu-Gi-Oh for a awhile... on the other hand, if another dubbing company gets this ((Most probably leaning on Viz)), I'll be enjoying my stuff uncut and not edited to point of editing a setting's culture or goods. "MAN!! There's nothing like doughnuts!!"

Free cookie for anyone who remembers that line...
 
Those donuts are great! Jelly filled are my favorite! Nothing beats a jelly filled donut!

...Well that's the one I remember from Pokemon, at least. Those words will never leave my head.

And it's always nice to see an anime being rescued from 4Kids...but what puzzles me is why FUNimation is involved. They distributed DVDs for 4Kids? Why would they sink to that level? That just makes me sadface.
 
Now if only the same thing happened to Sonic X.

...Not that it's redeemable or anything, but still.
 
Umm, yay? 4Kids doesn't dub for my country, and I don't watch Yu-Gi-Oh, altrough it's funny to know the chunk of money 4Kids owes Japan.
 
Viz would be an awesome candidate for this, but Funimation works too. While they're at it, can they take Pokemon away from 4Kids? I kinda want Funimation VAs in there as well.
 
They took pokemon away from 4Kids a LLLLONG time ago. Somewhere around Gen 3 is when they fired most of the crew and Viz came around.

...Seriously? The dubs haven't gotten much better, but then again, I almost never watch Pokemon except for on Saturday mornings when my sister puts it on.
 
Nobody here knows Pokemon all too well, do they?

I don't know who anyone means by "they," but The Pokemon Company took the Pokemon franchise away from 4Kids back in 2006 and started to do everything in-house. Viz has no involvment with The Pokemon Company in terms of dubbing. And 4Kids VAs were scrapped along with the decision to not renew with 4Kids. A completely new team of VAs were hired, with no affilation with any other company.
 
More like went bankrupt.
Moderator Notice:
They've got some rather saucy signatures over there, I see.
 
Last edited by a moderator:
It seems the got the rights to zexal. judging from what i've heard about that show, they might not screw it up.
 
Status
Not open for further replies.

Who is viewing this thread (Total: 1, Members: 0, Guests: 1)

Back
Top