Mark Androvich
04:57 (BST)
01/11/2007
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Atari may lose Dragonball Z rights
In talks with FUNimation to resolve dispute
In a recent SEC filing, Atari revealed that it is in danger of losing the license to the Dragon Ball Z franchise.
According to the filing, on October 18, FUNimation served the company with a notice to terminate the license based on alleged breaches of their licensing agreement.
"[Atari] disputes the validity of the termination notices and has continued to distribute the titles covered by the license agreements," the company stated in the SEC filing, noting that the parties were in discussions attempting to resolve the issue.
Atari, who earned USD 85 million on the Dragon Ball Z franchise in fiscal 2005, noted that "...In the event that FUNimation is successful in terminating the license agreements it could have a material adverse effect on the Company's results of operations and financial position."
The company is already troubled, posting a USD 69.7 million loss for the prior fiscal year.
Parent company, Infogrames, recently axed Atari's board of directors and named a new chief restructuring officer as part of its attempts to turn the company around.
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