Atari Settles FUNimation Dispute
Atari announced today that it settled its dispute with FUNimation Productions Ltd. with respect to an audit of amounts due to FUNimation under certain sublicense agreements and other matters.
Under the terms of the settlement, Atari, Inc. paid to FUNimation $3.5 million, comprised of a cash payment of approximately $2.7 million and a reduction of $0.8 million in the amount of the recoupable royalty advance made to FUNimation. Atari, Inc. originally paid FUNimation $10 million in January 2004 to secure the exclusive interactive U.S. rights for the Dragon Ball Z franchise through January 2010. As previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, the Company reserved the settlement as of September 30, 2007.
“With this dispute behind Atari, Inc. we look forward to continuing our relationship with FUNimation and continuing to deliver to our consumers exciting products from the Dragon Ball Z franchise,” said Curtis G. Solsvig III, Chief Restructuring Officer of Atari, Inc.