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4Kids' Yu-Gi-Oh! License Is Still in Force, Court Rules


Koby

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On Thursday, United States Bankruptcy Judge Shelley C. Chapman ruled that 4Kids Entertainment's licensing agreement for the Yu-Gi-Oh! anime franchise is still in effect. Judge Chapman found that the Japanese consortium that controls Yu-Gi-Oh! rights — Nihon Ad Systems (NAS), TV Tokyo, and ADK — did not effectively terminate the agreement with 4Kids Entertainment.

As written in the court's findings: "Like characters in the Yu-Gi-Oh! series itself, 4Kids and the Consortium were locked in a high stakes duel over the future of the series in the Western world and, by extension, the survival of 4Kids as a going concern. On March 24, 2011, the Consortium attempted to end the duel by issuing a letter that purports to terminate its licensing agreement with 4Kids."

The Consortium claimed in March that 4Kids hid income that should have been subject to US$4,819,354.63 in royalties for the Japanese owners:

1 - Unreported Funimation Home Video Revenue - US$1,967,000.00

2 - Unreported Majesco Home Video Revenue - US$91,666.50

3 - Unsubstantiated International Withholding Taxes - US$2,265,767.16

4 - Unreported Post June 2008 Home Video Revenue - US$26,894.27

5 - Unauthorized Audit Fee Deduction - US$105,111.20

6 - Unauthorized E&O Insurance Cost - US$67,328.45

7 - Unauthorized Bank Charges - US$4,270.58

8 - Other Unauthorized Deductions - US$43,554.59

9 - Other Recovery – Material and Courier Cost - US$247,771.88

However, Judge Chapman determined that seven of these audit findings (1, 2, 3, 4, 5, 6, and 9) were withdrawn by the consortium or were meritless. The court emphasized that "the invalidity of any single one of these Findings is sufficient to support the ultimate conclusion that termination was ineffective."

Judge Chapman further found that the consortium did not follow the proper procedure for terminating its agreement with 4Kids, under the terms listed in the agreement itself. The agreement dictated that 4Kids should have had a period of time to correct a claimed breach of contract, but the judge stated that "4Kids never received a proper and effective notice" of this.

Source: ANN

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I've heard about this lawsuit. Personally I hope 4Kids gets to continue to do Yugioh here in the US so long as they don't cut anymore series short like they did to Yugioh GX and Yugioh 5DS.

Unfortunately they cut them because the series became too dark for kids in their eyes for those seasons. As long as they hold the rights we can continue to see them do that to any future series that go further into darkness. I figure a big reason the Japanese companies wanted to take back control was so they could distribute the series and not have missing episodes in the States. However as shown in the first post, the court ruled in favor of 4kids and thus they will maintain their rights to the show.

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Oh for christ sake...... will they ever give this a rest? Yugioh has pretty much died already. Actually.... it died when they did season 4........

---------- Post added at 04:58 AM ---------- Previous post was at 04:57 AM ----------

Unfortunately they cut them because the series became too dark for kids in their eyes for those seasons. As long as they hold the rights we can continue to see them do that to any future series that go further into darkness. I figure a big reason the Japanese companies wanted to take back control was so they could distribute the series and not have missing episodes in the States. However as shown in the first post, the court ruled in favor of 4kids and thus they will maintain their rights to the show.

At any point, will the Japanese companies be able to get it back or is it stuck in the hands of 4kids for good?

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My favorite Yu-Gi-Oh! Series is GX. I liked the story more and the characters were odd and unique. Yugi was getting weird around the Oricalcos incident and then the whole "I'm the Pharoh and must find out what happened to me." which was obviously closing the series but still I just feel better with Jaden as the main character, more cheerful and really has the power of "the heart of the cards." it's crazy the amount of times he gets the card he needs. Also GX did not have the weird no sacrifice, 2000 LP duels and the weird interpretation of abilities to benefit the story.

I really don't care if 4Kids does continue. Right now it's just a matter if the series will be dubbed or stay Japanese and subject to fan-subbing. IMHO, sub > dub.

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Oh great, can they just lose that license already? I mean for pete's sake each yu-gi-oh series has it's dark seasons/moments, but the whole "think about the children" excuse is just stupid. An example would be GX when the cast are in the other dimension. When people/spirits lose a duel, they die, simple as dead, but in the 4kids dub they get "sent to the stars". I seriously think 4kids were high when they made that concept. Hopefully a zexal dub won't be coming any time soon.

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