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THQ Smacksdown Jakks Over WWE Suit

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THQ is claiming victory over partner Jakks Pacific in the most recent match of the long-running no-holds-barred legal battle royal the two have been in over the licensing rights for World Wrestling Entertainment.

In a binding arbitration between the two companies announced today, an arbitrator has ruled that Jakks is only entitled to six percent of sales from THQ WWE games, down from ten percent. The new, lower rate, is retroactive to July 1, 2006 and runs through the end of this year.

As a result, THQ says they expect to bring in an extra $23 million during the fiscal 2010 quarter ending this September.

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The arbitration kicked off after the two companies came to an impasse while negotiating a new preferred rate return. It's just the latest in a series of legal battles between the two.

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Back in June Jakks Pacific notified WWE of their intentions to renew their license to create games based on the wrestling franchise. But THQ said that the company couldn't cut the deal without talking to them first.

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