Yu-Gi-Oh! US Deal Terminated - 4Kids Sued For Millions

[Yonkou255]

http://www.animenewsnetwork.com/news/2011-03-29/tv-tokyo-nihon-ad-terminate-yu-gi-oh-deal-sue-4kids

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.

Oh Boy…....

I hope Funi gets out of this one....

[Zack]

So….wait. They're suing for something that happened 8 years ago, or something they've actually been completely unaware of for 8 years now.

[Chopperrules]

Hopefully a better dub company gets YGO now.

[SonPan]

Wait so they lost the licence? That would be amazing if that is the case…

[Chopperrules]

Apparently so.

I wish FUNi would pick it up, although I'm not sure if they would be able to under these circumstances. They aren't affected by this lawsuit, but they do seem to be somewhat involved.

[Yonkou255]

@SonPan:

Wait so they lost the licence? That would be amazing if that is the case…

Yup, up there in the Title Mr/Ms.

[Robby]

Does it really matter? The show ended years ago, everyone knows 4Kids sucks for a variety of reasons, and its not like it would get a redub even at a new company.

I guess there's whatever the upcoming fourth anime series is called.

I think LittleKuriboh is somehow responsible for all this.

[Chopperrules]

It's still possible for a redub. It's not as popular, but still popular enough. Also, 5D's is new enough for them to try and work with.

[Strongbad456]

This is incredible. I hope FUNi gets the series now but I'm thinking it's more likely to go to Viz.

[Kaba Kaba Fruit]

This has to be the very definition of Karma. Who'd have thought 4Kids would get it so hard in the end?

[Buuhan1]

@Strongbad456:

This is incredible. I hope FUNi gets the series now but I'm thinking it's more likely to go to Viz.

This could end up being ugly for FUNimation even if it's proven they had no idea what 4kids was doing. Studios may start to stand clear of them after finding out they were a part of something like this, even if indirectly.

I was wondering why that constant hammering sound I always hear finally stopped, guess they got the final nail into 4kids coffin. $5 million is one thing, but they just lost their main source of income with YGO.

[Strongbad456]

@Buuhan1:

This could end up being ugly for FUNimation even if it's proven they had no idea what 4kids was doing. Studios may start to stand clear of them after finding out they were a part of something like this, even if indirectly.

I was wondering why that constant hammering sound I always hear finally stopped, guess they got the final nail into 4kids coffin. $5 million is one thing, but they just lost their main source of income with YGO.

You're probably right. And in the worst-case scenario, this could cause FUNi to lose some of their series(Like One Piece or DBZ).

[Hiroy]

I hope Yugioh sinks with the ship and no one picks it up. There's a ton more better shit out there that has not even been localized yet.

[Kaba Kaba Fruit]

I don't think FUNimation would be brought to task here considering that they were mostly commissioned from 4Kids to simply print DVDs for Yu-Gi-Oh! and their other properties. They had no hand in hiding 4Kids' earnings. For FUNimation to be accused of doing so would make them a victim of a witch hunt being perpetrated by TV Tokyo and Nihon Ad Systems.

[Chopperrules]

@Hiroy:

I hope Yugioh sinks with the ship and no one picks it up. There's a ton more better shit out there that has not even been localized yet.

There are still fans that disagree.

[Hiroy]

@Chopperrules:

There are still fans that disagree.

Don't care.

[Zack]

@Chopperrules:

There are still fans that disagree.

While I like Yugioh 5D's last I watched it, I agree it'd be good to go ahead and try to let the series end with that in the states instead of dragging it out until it becomes a piece of crap. Of course, I honestly just feel it's Yugioh's time to come to an end instead of constantly being extended at this point.

[Kaba Kaba Fruit]

@Hiroy:

Don't care.

Dude, it's not like the anime came into your house at night and murdered your entire family. Chill. If some people want it for the nostalgia, let them petition.

[Tokoro Ataru]

If anything, maybe the YGO franchise should just move to Canada and be dubbed alongside Beyblade and Bakugan. The former in particular has a good dub and I could see it continuing in some fashion. (considering that at least for the most part toy-etic franchises are better made there than here)

Yeah many don't consider it "real anime" but the toyetic shows are still anime regardless.

[Chopperrules]

@Hiroy:

Don't care.

Bet you would if it was a series you like. Try being more respectable for a change.

To be honest, I don't care as much about the new upcoming ZeXal as I do about the previous three series. I'd really like to see them get a redub. Those of you who haven't seen the original don't know how different they are. Well, not so much GX as the other two, although a lot of things were changed in GX as well.

[InvaderP]

r_eUHs_HXow&feature=feedu

Well, that was fast.
Anyway, I don't really care about ZeXal, it looks pretty generic to me. I just hope that at least 5D's gets redubbed by a company that stays true to the original.

[Kaba Kaba Fruit]

That and a complete re-dub and uncut release of Duel Monsters and GX.

[Malintex_Terek]

FUNimation really should be sued, considering they have a lot more money now and were obviously benefitting heavily from it, considering they weren't dominant in the anime market until 2006. I can say this comes out now due to 4Kids financial difficulties and the likelihood of shut down.

[Hiroy]

@Kaba:

Dude, it's not like the anime came into your house at night and murdered your entire family. Chill. If some people want it for the nostalgia, let them petition.

Sink. Sink. Sink.

[Zack]

@Malintex_Terek:

FUNimation really should be sued, considering they have a lot more money now and were obviously benefitting heavily from it, considering they weren't dominant in the anime market until 2006. I can say this comes out now due to 4Kids financial difficulties and the likelihood of shut down.

Well, isn't it 4kids's responsibility in the first place to pay TV Tokyo and whatever for all of this anyway? I don't see how Funimation's responsible for 4kids's actions.

[JulieYBM]

FUNimation wouldn't be aware of the details of 4Kids' contracts with other companies. All they would know are the details signed within their contract(s) with 4Kids.

[Kaba Kaba Fruit]

@Hiroy:

Sink. Sink. Sink.

What do you have against Yu-Gi-Oh! anyway?
@Malintex:

FUNimation really should be sued, considering they have a lot more money now and were obviously benefitting heavily from it, considering they weren't dominant in the anime market until 2006. I can say this comes out now due to 4Kids financial difficulties and the likelihood of shut down.

I think FUNimation should be sued for plenty of other things such as inadvertent product withdrawals without due acknowledgement of inconvenience to the customer but that's not going to happen because as it stands, the company may very well be the keystone that keeps the U.S. anime industry together!

[dan2026]

Oh 4kids' suffering is like music for my soul.

Its so satisfying that after raping and pillaging through one anime after another they finally get slapped with some payback.

[No Maam]

@InvaderP:

r_eUHs_HXow&feature=feedu

Well, that was fast.
Anyway, I don't really care about ZeXal, it looks pretty generic to me. I just hope that at least 5D's gets redubbed by a company that stays true to the original.

Okay.

That was sorta funny, but I wonder if LK might have waited and written some actual jokes :wassat:

[loledinmypants]

Bye 4kids. We won't miss you.

[Chopperrules]

Hiroy is trolling the thread, so ignore him. He's been known to be an insensitive douche at times when things go against his tastes.

I don't want FUNi to be sued, because it could affect their other titles, which would suck greatly. And FUNi is a much better company than 4Kids.

[Kaba Kaba Fruit]

@Chopperrules:

Hiroy is trolling the thread, so ignore him. He's been known to be an insensitive douche at times when things go against his tastes.

Isn't he a mod though? :wassat: I mean, I can expect an attitude like that from JERK DISEASE, but not him.

[Crossword]

He's not a mod and I advise you guys to drop this before I have to perform some plastic surgery on this thread.

[Zack]

@Kaba:

Isn't he a mod though? :wassat: I mean, I can expect an attitude like that from JERK DISEASE, but not him.

He's not a mod. One star just means their respected or senior members.

[Kaba Kaba Fruit]

@Crossword:

He's not a mod and I advise you guys to drop this before I have to perform some plastic surgery on this thread.

Yessir, Mr. shark-wrestler sir!

[Zkaiser]

@HiroVoid:

He's not a mod. One star just means their respected or senior members.

[superquotpetquotrobot]

@loledinmypants:

Bye 4kids. We won't miss you.

But who will dub anime for the children?

[Robby]

@Kaba:

That and a complete re-dub and uncut release of Duel Monsters and GX.

As long as LittleKuriboh does all the voices.

Except for Ghost Nappa, of course.

@super:

But who will dub anime for the children?

Pokemon USA?

[Tokoro Ataru]

I say most of the kids anime should probably just be dubbed by the Canadians at this point. I mentioned before: Beyblade Metal Fusion is a completely Canadian dub and keeps all music and even is supported by one of the kids networks (can't remember if it's YTV or Teletoon…I know they're one and Bakugan is another...but Bakugan sucks so who cares about that) And there is also the Pretty Cure dub...but I don't know what's happened with that. (that's Canadian only though)

As long as there are still toy lines they want to bring over from Japan...and good anime (as well as not so good anime) to push them into the stores, the kids anime market will continue to be there.

[Kaba Kaba Fruit]

@RobbyBevard:

As long as LittleKuriboh does all the voices.

Only if he does Pegasus. His Pegasus was damn good!

By the way, doesn't anyone else think how funny this is that Al Kahn retired not long before this whole suit came into fruition? Makes you wonder just how much Kahn knew about these kickbacks before he decided to retire from his CEO position and escape with his plane luggage filled with cash!

[Chopperrules]

I would approve of LK's voices if he tried to make them just slightly less parody goofy and more serious. Although I guess Pegasus is meant to sound like that, lol.

And I'm not really trying to attack Hiroy, but just come on. I just wish people would respect other's opinions more, is all.

[Hiroy]

^I just simply stated I would rather see the series sink. Respecting opinions has absolutely nothing to do with it. Blame yourself for disagreeing with my stance.

@Kaba:

What do you have against Yu-Gi-Oh! anyway?

Nothin. I just don't see the point of re-dubbing something that was already a success to begin with. Maybe a company can pick it up to continue it, but other than that it's a big waste of time.

Remember how much a flop the uncut sets of Yugioh were? Yeah, some loyal fans they were.

[SonPan]

I really hope 5D's gets redubbed more than the rest since it didnt even finish and was prob the worst dub of the three… (it's ending this week!!).
Also, with a new licence, GX's season 4 could finally be dubbed... but I really hope FUNi doesnt get in trouble for this, even though they could technically not know anything about these alligations.

Edit: Hiroy: I will admit that DM was pretty okay, only cause the voices were actually good (Dan GREEN), but seriously other than that, compared to the original it still had signifigant changes that changed the stories, and made it make no sense. But 5D's really had the worst of it...
Loyal fans? Tell me how many of the loyal fans actually knew about these uncut dvds. I mean they werent even that good and were so rare. Plus they were so many years ago.

[Chopperrules]

@Hiroy:

^I just simply stated I would rather see the series sink. Respecting opinions has absolutely nothing to do with it. Blame yourself for disagreeing with my stance.

Nothin. I just don't see the point of re-dubbing something that was already a success to begin with. Maybe a company can pick it up to continue it, but other than that it's a big waste of time.

Remember how much a flop the uncut sets of Yugioh were? Yeah, some loyal fans they were.

It does, though. I realize you're stating your opinion, so I'm in the wrong for being hypocritical. But just shooting down the idea of a redub like that is kind of disrespectful to us fans who still support it. Or rather, instead of saying "shoot it down", try to be a little more respectful about it. Well, anyway…

The uncut sets were a flop because of poor advertising and the fact that they were released with 3 episodes a set at the exact same price as any other anime DVD. If you were just a casual anime fan looking for something new, would you want to pick that up?

On the other hand, had they released season sets or 12-13 episode sets like how FUNi and VIZ do things, the results would be better.

More than that, 4Kids didn't give a shit about it in the first place. They only did it because the fans were bitching. Then they half-assed it, got bad results and were like "DUR, I guess no one likes the original."

[Justaway]

Knowing this the two of them will probably just settle or something.

[No Maam]

Wait now, they didn't even air the last season of GX ?

[Hiroy]

@Chopperrules:

Or rather, instead of saying "shoot it down", try to be a little more respectful about it. Well, anyway…

Changing a few words does little but sugarcoat. Anyway, I'm done with you.

@SonPan:

Edit: Hiroy: I will admit that DM was pretty okay, only cause the voices were actually good (Dan GREEN), but seriously other than that, compared to the original it still had signifigant changes that changed the stories, and made it make no sense. But 5D's really had the worst of it…

If you say it was that bad, then fair enough. Still. I suppose I'll never fully understand the idea of sporting a full re-dub for a series that's out to sell a card game. Fans are fans, I guess.

[Aaronrules380]

IN a technical sense, the card game sprang up from the manga, the manga wasn't created to promote the card game. And since the anime was an adaption of the manga, its also a bit different. Not to say the manga didn't focus in on the card game because they thought it could sell merchandise though

[TakinawaTonfa]

@RobbyBevard:

As long as LittleKuriboh does all the voices.

I remember there was a fan dub floating around somewhere that tried to take the serious, actual, honest to God dub approach to the series and featured LK voicing Sugoroku (Yugi's Grandpa)

That whole thing had a short lifespan.

[Flux]

Wow, lol.

Was never a fan of 5Ds etcetera. Duel Academy was interesting whenever I watched it, but I don't think it's been as good as good old Yami/Yugi in the original series. It's all just gotten very formulaic. What's this new one coming out Zexal? or something.

I think it's fine if a company want to pick it up, but not fussed ona redub. If anything it'll probably go the One Piece route, with the stuff being continue-dubbed for TV, and then they'll bring out DVDs redubbed.

Wait are we talking redub of a partcular number of already completed episodes? Or redub of the whole series? Franchise, cus that ain't happening.