I thought we had heard the last of the dispute between WWE license holders JAKKS Pacific and THQ, but it seems there is still some business to be squared away.

As such, THQ has announced that WWE has extended its renewal notice deadline for the video game license held between THQ and JAKKS to December 31st, 2009. The renewal would extend the license rights to 2014, with THQ noting that "WWE's action provides the company with increased flexibility with respect to the renewal of the videogame license."

Everyone's Favorite Analyst, Michael Pachter of Wedbush Morgan, notes that the joint venture between THQ and JAKKS is a legal entity in itself, thus preventing either company from entering into a new agreement on its own. "The relevant issue," he says, "involves whether THQ can unilaterally terminate the joint venture, so that it can enter into a license deal with WWE on its own."

Unfortunately, however, JAKKS has said in a counterclaim that THQ is unable to terminate their agreement unilaterally. What's more, even if the joint venture were to be terminated, THQ would be contractually bound to produce no WWE games for a 12 month period.

THQ counterclaimed the counterclaim that it can terminate unilaterally and doesn't have to honor the 12 month stipulation. Pachter says they believe it's a little of both; THQ can terminate unilaterally, but would still be bound by the 12 month contract.

"We think that the likely outcome is that the JV gets terminated and that JAKKS stops getting money from the deal in 2010," he writes. "If JAKKS enforces its non-compete clause with THQ, both THQ and WWE get hurt, since there won't be any games produced. JAKKS doesn't gain anything but the good feeling it might derive from being spiteful. However, THQ and WWE lose something."

With this extension in place, there is now more time for THQ and JAKKS Pacific to settle their differences.

Pachter notes that it seems clear that neither THQ nor WWE want to do business with JAKKS any more (with WWE handing over the toy license to Mattel at a separate point; look for those next year). He sees three possible alternatives: the deal is kept as it is for another five years, thus leaving WWE and THQ unhappy, but JAKKS would still be happy; the deal is terminated, resulting in no WWE games for a year, leaving WWE and THQ unhappy while JAKKS is neutral; or they just pay JAKKS off to scuttle off. That would leave WWE and THQ a tad annoyed, but happy that they can deal with one-another sans JAKKS, and JAKKS is happy, too.

Naturally, Pachter (as anyone would) figures that the third scenario is the most likely one, and THQ will make it so in the next two months.