THQ has filed a complaint against UFC parent company Zuffa and Electronic Arts over the UFC license transfer which saw EA acquire the license.
THQ claims it held “several discussions” with EA in early December 2011 about selling the UFC license, in which THQ shared confidential information including “detailed sales and revenue figures for the UFC franchise, and projected marketing expenditures on the next UFC franchise game.” Zuffa then contacted THQ at the end of the year about terminating its UFC license. THQ claims Zuffa had access to the information it had shared with EA in its earlier discussions which would mean that EA went directly to Zuffa to discuss a direct sale of the license which would benefit EA and Zuffa at THQ’s expense.
In the complaint, THQ says the UFC license transfer was fraudulent under U.S. bankruptcy law, and by sharing THQ’s confidential information EA committed “tortious interference” with the agreement between THQ and Zuffa.
Zuffa paid THQ $10 million to end their agreement and the license of THQ’s UFC-related intellectual property. THQ believes that at the time the UFC license was worth at least $10 million and therefore is seeking at least $10 million in damages along with the recovery of the license and any profits EA has made on the UFC franchise.