View Full Version : TV Tokyo, Nihon Ad Terminate Yu-Gi-Oh! Deal, Sues 4Kids

Netto Azure
March 29th, 2011, 3:45 PM
TV Tokyo, Nihon Ad Terminate Yu-Gi-Oh! Deal, Sues 4Kids (http://www.animenewsnetwork.com/news/2011-03-29/tv-tokyo-nihon-ad-terminate-yu-gi-oh-deal-sue-4kids)

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.

The only thing good that 4Kids ever gave us was YuGiOh Abridged. So they had their use. :P

March 29th, 2011, 6:07 PM
I think we've been talking about this earlier at the IRC. Meh, I didn't really like their dub of Yu-Gi-Oh!, it wasn't really that great. Good riddance, I guess?

March 29th, 2011, 7:15 PM
0_0 This seems like pretty big news, if you ask me. Does this have any effect on whether Dan Green can reprise his role as Yami (Yugi)/Atem in case he gets a cameo in Yu-Gi-Oh! Zexal or something...? I don't think Green is tied strictly to 4Kids, since he did Pokemon stuff even after 4Kids lost the rights to the Pokemon anime but he is associated with them quite a bit, it seems...

But who's going to dub Yu-Gi-Oh! Zexal?? And will Yu-Gi-Oh! 5Ds finish completion?! I was going to suggest Funimation, but they're partly responsible for this whole mess (yet for some reason, they aren't listed as defendants in this case...). The only other notable anime distributor I can think of is VIZ Media... (If Yu-Gi-Oh! could be rescued like One Piece, somehow, that would be awesome!)

And here I was going to commend 4Kids for airing subbed episodes of the ORIGINAL JAPANESE EDITION of Sonic X, (http://www.youtube.com/watch?v=m6fNV2ah-wg)which was helping in giving what many Sonic X fans wished and clamored for but likely never anticipated. Well, 4Kids ...they just lost respect...again. -_- Sigh...for shame. :cer_no:

And now I'm reminding of how they butchered One Piece and countless other anime episodes, including YGO and Pokemon (to an extent). Why can't 4Kids just fade into obscurity or something and stop messing with anime? TMNT 2003, catchy theme songs, putting Dan Green in Yu-Gi-Oh!, select Pokemon episode adaptations, and their online hosting of the Japanese version of Sonic X are like their only good contributions, and I really dislike applauding them when something this disgusting is happening because of them. T_T

But why did Funimation have to muck things up and be involved in this, darn it?! I thought so highly of them since they rescued One Piece and did other great stuff with anime since then! >.<

March 29th, 2011, 9:45 PM
While its sad to consider those innocent who'll lose their jobs for this, I can't really feel bad for 4Kids. They butcher anime. The 4Kids cast for Sonic X not only were mediocre for the show, but were carried on to the games as well... the only exceptional voice being Mike ******* who plays Eggman currently.
Hopefully this'll just be the last nail in 4Kids coffin and Japanese companies can partner with a good English localization company instead.

March 30th, 2011, 4:49 AM
Who cares, even good businesses pull stunts like this. Remember that corporations consist of thousands of individuals, most of whom are perfectly honest, hard-working people. It's usually only the people on top that do stuff like this. And besides, there are plenty of legitimate reasons to hate 4Kids.

March 31st, 2011, 8:59 AM
I think we've been talking about this earlier at the IRC. Meh, I didn't really like their dub of Yu-Gi-Oh!, it wasn't really that great. Good riddance, I guess?

Correction, that was LittleKuriboh, not 4Kids.

Anyways besides for Dragon Ball Z Kai, 4Kids is pretty much dead.

It lost Pokémon, which doesn't upset me because I like TPCi's dub better. It lost TMNT just recently, which is shocking to because I loved that show and they had just made a movie about it back in 2010.

Now all they really play is Sonic X, which is getting old, and Magi-Nation, which I don't even watch.

After this incident, I'm pretty sure even if 4Kids continues dubbing 5D, they won't be able to put them on DVD anytime soon.

Digimon Kaiser
April 9th, 2011, 2:16 PM
Never got into YuGiOh, but I'm glad 4kids is getting what they deserve.

EDIT: WHAT?!You're saying Dinosaur King was taken off?! It was their one show that was ever beyond decent!