The termination of 4Kids’ license to the Yu-Gi-Oh! property was improperly noticed and otherwise flawed, Judge Shelley Chapman ruled in federal bankruptcy court, meaning that 4Kids license is still in effect.  The termination, by NAS and TV Tokyo, was over alleged improper accounting for royalties due the rightsholders and other issues that resulted in alleged underpayments.  In addition to sending 4Kids a termination notice, the rightsholders also sued 4Kids in federal court (see “4Kids Sued”).  4Kids filed for reorganization under bankruptcy law as a result (see “4Kids Files Chapter 11”), and the dispute with NAS and TV Tokyo was moved to the bankruptcy court. 

The bankruptcy judge ruled that most of the claims for amounts due from 4Kids were invalid, making the termination notice flawed.  The termination was also given without allowing 4Kids time to cure, as was required by the contract. 

4Kids began airing the new Yu-Gi-Oh! series, Yu-Gi-Oh! Zexal, on Toonzai in October (see “’YGO: Zexal’ in October”). 

4Kids is in court-supervised, mediated settlement talks with the Yu-Gi-Oh! rightsholders.