On October 19, 2004, a lawsuit against THQ Inc. and JAKKS Pacific LLC was filed by the World Wrestling Entertainment (WWE) in the U.S. District court. This is about the toy license with WWE and the video game license between WWE and the joint venture company operated by THQ Inc. and JAKKS Pacific Inc.

Named WWE Action, World Wrestling Entertainment, Inc. claimed that both companies violated their property rights by improper sales of WWE video games in Japan and other Asian territories. Due to this, WWE is seeking termination of video game license of both companies along with monetary damages.

THQ and JAKKS Pacific denied the allegations in a press release recently, claiming that the lawsuit is "without merit" and they are planning to prove their case in court. One of the WWE video games from the joint venture is WWE Smackdown vs Raw 2006 for the PSP and PS2 consoles which was released in U.S. and Canadian territories on November 15 last year. With the lawsuit at hand, we don't know if the release of the game will be fulfilled. But we are keeping our fingers crossed that this case won't affect other WWE releases from THQ and JAKKS Pacific since so many WWE fans have been waiting for this.