Topic: 4kids loses Yu-Gi-Oh. They get sued too.

[Solar]

4Kids Entertainment has made quite a business out of taking Japanese anime programming like Pokemon and Yu-Gi-Oh! and dubbing it into English for the pleasure of U.S. children. Just how lucrative? The Yu-Gi-Oh! franchise, including a popular TV show and various merchandising, is said to have earned 4Kids over $152 million in income between 2001 and 2009.

But now, the Japanese animation studio that first created the anime hits is attacking, claiming that 4Kids owes it millions of dollars for making secret agreements with TV networks and home video distributors as well as making improper royalty deductions, including for the cost of the actual dubbing. As the result of alleged contractual breaches, the Japanese companies behind the show reveal they have just terminated their licensing agreements with 4Kids. They now want past money owed too.

TV Tokyo Corporation and Nihon Ad Systems filed the lawsuit last week in New York federal court.

According to the complaint, the plaintiffs exercised their right to audit 4Kids' financial books in 2010 to see whether they were getting paid 50% of gross income, minus pre-defined expenses, as agreed upon in the original licensing agreement.

The auditor allegedly turned up some questionable accounting concerning deals made by 4Kids with the Cartoon Network and other parties.

For example, 4Kids is said to have made an agreement with  Funimation Productions, giving it the right to exploit the YGO series on home video. "4Kids conspired with Funimation to fraudulently hide from Plaintiffs more than 45% of the total income Funimation paid to 4Kids from the sale of the home videos," the complaint states.

Allegedly, 4Kids not only licensed YGO, but also several other Japanese animation series it didn't own. Under the terms of this supposedly secret deal, which allegedly included a strict confidentiality clause, 4Kids didn't have to do much besides perform certain marketing services. It was Funimation's job to produce and distribute the series, and for this right, Funimation paid a $1.3 million advance and gave over nearly $4 million in a service fee, which was allegedly then hidden from the plaintiffs.

4Kids is said to have made a similar "strictly confidential" deal with Majesco Sales Inc. to produce and distribute videos of the YGO episodes on Nintendo's Gameboy Advanced game system, and allegedly never turned over any royalties.

The complaint also details some improper deductions, including more than $2.5 million worth of international withholding taxes, bank charges, insurance coverage, YGO style guide art, the cost of the audit itself, and even the cost of the dubbing. TV Tokyo says 4Kids "expressly agreed to bear [such costs] under the agreement."

After the auditor's report, the parties met in February to discuss the situation. The plaintiffs are said to have made an offer, which was rejected. After further discussions, on March 17, 4Kids wired $1 million as a "good faith" initial payment. The next day, reps for the Japanese companies flew to the U.S. for a final meeting to see if they could resolve the mess.

"4Kids abruptly terminated this meeting without a resolution to any of the outstanding issues," says the complaint.

In response, TV Tokyo Corporation and Nihon Ad Systems have cancelled the agreement and filed a lawsuit, seeking more than $4 million in damages and other relief for breach of contract and fraud. The legal dispute also leaves the future of some of the most popular Japanese programming on U.S. television in some doubt.

Attempts to reach 4Kids for comment were unsuccessful.

http://www.hollywoodreporter.com/thr-esq/yu-gi-creator-terminates-us-172273


Yeah, the company is done for.

[Police Girl]

Well, [parasitic bomb]. Certaintly wasn't expecting this to happen.

[Flame]

Well, [parasitic bomb]. Certaintly wasn't expecting this to happen.

Amen to that. I mean, I expected them to eventually go down under do to their recent economic issues, but damn, I NEVER expected this!

That said, Yugioh's US license is up for grabs now. (if they decide to actually part with it now that this has happened with 4kids, that is)

Ive always hoped for Funimation to get the rights to Yugioh, though now, Im not so sure if that could happen, given 4kids made those certain deals with them behind TV Tokyo's back.

Although, Its possible, given that Funi may not have even known that the deals were "bad deals" so to speak. And even if they knew, its 4kids at fault for even inciting it, so Funi could just wash their hands of the whole thing, since it "wasnt their fault"

[irgpie]

My only thoughts are about how many may be left unemployed if the company goes under.

[Flame]

By the way, anyone else find it interesting that Al Kahn retired a short while ago? When they were in a financial mess? Specifically when TV Tokyo decided to audit 4kids' books?

[Protoman Blues]

Brooklyn Joey is saddened by this.

[Align]

I thought you guys hated 4kids?

[Flame]

I do. But I'm trying not to show much contempt.

let me put it this way: I hate what they've done with anime. But that was executive fuckery. AKA Khan, and whatever little group of board directors he has/had. everyone else was just an underling, and might very well lose their job, despite what they themselves might have thought.

[Bueno Excelente]

Was Yu-Gi-Oh ever any good? I kinda outgrew typical shonen back when it started out, and card battles seemed retarded to me. I only watched one or two loose eps, and thought they were kinda stupid. How was it overall?

[Gaia]

Brooklyn Joey is saddened by this.

Brooklyn Joey's the best one out there. One thing I liked about 4kids is that some way or another, they gave 'em accents in YGO. This also means Pokemon is also at risk (the anime itself, considering how they just LITERALLY used the JP opening for Best Wishes, and they didin't give it a US title either traditionally) of being pulled as well. Hopefully Nintendo will be smart enough to open an anime company to keep the current season on the air.

[Solar]

4kids lost Pokemon years ago =/

[Gaia]

'Doh, right. How did I forget that.... >.>

Next anime I think they are gonna lose is Sonic X... I think. Since Seg's decided to let the 4kids voice actors go, 'cept for a few.. I think. 

[Flame]

'Doh, right. How did I forget that.... >.>

Next anime I think they are gonna lose is Sonic X... I think. Since Seg's decided to let the 4kids voice actors go, 'cept for a few.. I think. 

Sonic X ended a while ago too though. They cant make much more off of the anime, and theve recently been replaced in the VA department, (with the exception of Pollock) Although arent the 4kids VA's actually freelancers? I mean theyve done dub work outside of 4kids.

*cues Dan Green's Hentai work* "CLUCK LIKE A CHICKEN!"

[The Drunken Dishwasher]

...

I'd love to see original, unaltered Yugioh w/ the same actors.

I hope this happens.

[Flame]

...

I'd love to see original, unaltered Yugioh w/ the same actors.

I hope this happens.

yeah I never minded the Dubbing cast, it was the editing that did.

I mean, I loved Yugioh uncut.

[ViperAcidZX]

Brooklyn Joey Wheeler will be missed, though.

[Krystal]

Ah, so long 4kids. We hated you but some of your crap will be missed. May your talents find a better roof.

[Rin]

Was Yu-Gi-Oh ever any good? I kinda outgrew typical shonen back when it started out, and card battles seemed retarded to me. I only watched one or two loose eps, and thought they were kinda stupid. How was it overall?

Duel Monsters anime isn't bad in original, it's just that it can be pretty [tornado fang]ing boring at times. AND DEM HORRIBLE FILLERS! ARRRGH!
So I suggest reading the manga, especially from the begginning. Kaiba wanting to kill Mokuba (his brother) through a gas chamber is SO WORTH IT.

GX is [tornado fang]ing retarded. Don't touch it, unless you're a hardcore fan.

5D's is [tornado fang]ing AMAZING, even though CARD GAMES ON MOTORCYCLES LOL it's really the best ANIME series related to YGO. Despite the shitty twist in the last season and its horrible and boring WRPG arc. : /

As for this thing with 4Kids... well:

AAAAAAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAAHAAHAHAHAHAHAAAA!

[Bueno Excelente]

Duel Monsters anime isn't bad in original, it's just that it can be pretty [tornado fang]ing boring at times. AND DEM HORRIBLE FILLERS! ARRRGH!
So I suggest reading the manga, especially from the begginning. Kaiba wanting to kill Mokuba (his brother) through a gas chamber is SO WORTH IT.

GX is [tornado fang]ing retarded. Don't touch it, unless you're a hardcore fan.

5D's is [tornado fang]ing AMAZING, even though CARD GAMES ON MOTORCYCLES LOL it's really the best ANIME series related to YGO. Despite the shitty twist in the last season and its horrible and boring WRPG arc. : /

As for this thing with 4Kids... well:

AAAAAAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAAHAAHAHAHAHAHAAAA!

I might try out the manga. Thanks.

[Krystal]

Get your game on!

I liked YGO at the start. Like, back when Yami was running around just killing people. That was good. And it was about games, not 'card game'.

[Flame]

Dont touch the 5D's manga though, it is really weird. If you try 5D's, you are best off watching the anime.

I'll tell you though, 5D's has some of the BEST music Ive ever heard in Yugioh.

Get your game on!

I liked YGO at the start. Like, back when Yami was running around just killing people. That was good. And it was about games, not 'card game'.

Lol, like basically, early manga/season 0?

Yeah. He was a maniac.

I mean, look at this face.

LOOK AT THIS [tornado fang]ing FACE



Thats the face of a psycho

[Bueno Excelente]

I'll check it out. Man, he still looks amazingly ridiculous, though.

[Rin]

I'll check it out. Man, he still looks amazingly ridiculous, though.

Keep in mind, that at the beginning, the art is pretty strange. You might want to be prepared for that.

[Bueno Excelente]

I like strange art. I love JoJo for that reason.

[Krystal]

Yes, basically season 0. He was completely crazy and awesome. And a serial murderer. Who killed with children's games. That's more awesome than the Zodiac Killer.