Firm files law suit against MGA Entertainment claiming it breached terms of licensing agreements.
According to the Los Angeles Business Journal, Marvel has claimed in the suit filed on January 2nd that MGA owes the company $1.88 million for failing to pay licensing fees and violating the terms of several agreements by making toys which were excluded from the deal.
Marvel also claims an audit report in November revealed that MGA owes the firm at least $1.1 million from unpaid licensing fees, including a $375,000 minimum guarantee payment that was due by January 1st.
According to the court documents, the entertainment company is also seeking at least $780,000 from MGA based on the sale of the products related to Spider-Man and Ghost Rider, that were excluded from its licensing agreement.
MGA denies the allegations. MGA’s chief executive Isaac Larian said in a statement provided to the Business Journal.
“MGA has reviewed the complaints filed by Marvel Entertainment and Spiderman Merchandising and has concluded that the claims alleged are without merit in either fact or law. MGA intends to vigorously defend itself and is confident that it will ultimately prevail at trial.”
MGA has already been bruised in a court battle with Mattel over the Bratz dolls.