Quick Links:
ADV v. ARM Court Docs Reveal Anime License Prices
The District Clerk of Harris County, Texas recently posted a number of documents in regards to several cases with ADV Films. The most relevant of these cases involves the 2008 case, A.D. Vision v. ARM Corporation. In the document, a complete licensing agreement between ADV, Aniplex, and ARM as well as a total of thirty-one titles with their licensing costs are listed as evidence.
The case revolved around an alleged breach of contract by ARM, as ADV filed a complaint and a request for temporary restraining order. ADV alleged that three Sojitz/ARM employees, Kozo Mizushima, Nario Hada, and Shinji Ueda, were placed into prominent positions within the company shortly after the two companies entered into a strategic alliance. The three allegedly assumed control of the company from within, and worked with ARM to pay higher than market prices for a number of properties, thus ensuring higher fees and more leverage within the company. According to ADV's complaint, ARM attempted to forge deals with a third party, when ADV stated that they were unable to keep up with the fees. They were allegedly required to sign term sheets which would grant Sojitz/ARM total control in deals being made, under the threat of reduced funding.
The titles mentioned in the lawsuit are as follows (prices in US Dollars):
| Title | Date of Acquisition |
Cost |
|---|---|---|
| Guyver | 6/1/2006 | $746,665 |
| Comic Party Revolution | 6/10/2006 | $30,336 |
| Jinki:Extend | 6/10/2006 | $91,000 |
| Pani Poni Dash! | 6/30/2006 | $138,666 |
| Utawarerumono | 8/1/2006 | $109,201 |
| Moeyo Ken | 9/25/2006 | $43,335 |
| Coyote Ragtime Show | 9/25/2006 | $224,000 |
| UFO Ultramaiden Valkyrie | 9/25/2006 | $21,335 |
| Air Gear | 10/20/2006 | $780,000 |
| Ghost Train/Synesthesia | 10/24/2006 | $58,668 |
| Le Chevalier D'Eon | 10/24/2006 | $440,000 |
| Nerima Daikon Brothers | 10/25/2006 | $124,800 |
| Sgt. Frog | 11/10/2006 | $408,000 |
| Kurau: Phantom Memory | 12/4/2006 | $960,000 |
| 009-1 | 12/21/2006 | $325,000 |
| Ah! My Goddess: Flights of Fancy | 2/7/2007 | $516,000 |
| Magikano | 3/31/2007 | $65,000 |
| Pumpkin Scissors | 3/31/2007 | $780,000 |
| Red Garden | 3/31/2007 | $660,000 |
| Welcome to the NHK | 3/31/2007 | $240,000 |
| Innocent Venus | 4/12/2007 | $120,000 |
| Xenosaga | 4/12/2007 | 120,000 |
| Project Blue Earth SOS | 5/1/2007 | $180,000 |
| Tokyo Majin | 5/1/2007 | $780,000 |
| The Wallflower (Yamato Nadeshiko Shichi Henge) | 6/11/2007 | $500,000 |
| Air TV Series | 6/27/2007 | $145,000 |
| Moonlight Mile | 6/27/2007 | $156,000 |
| Air: The Movie | 7/4/2007 | $20,000 |
| King of Bandit Jing in Seventh Heaven | 7/26/2007 | $50,000 |
| Shin Angyo Onshi | 7/26/2007 | $130,000 |
ARM argued that the companies entered into a loan agreement that granted ADV ¥974,185,000 in credit. Transactions would need to be approved by ARM, and paid for in monthly payments. The first of these payments would come six months after a title was licensed. Due to their agreement, ARM argued that they would be held liable for any title licensed by ADV, and therefore insisted on the maximum royalty to avoid potential problems down the line. They stated that ADV could not move product at a favorable rate, which lowered returns to ADV, and ensured that ADV would be unable to pay in a cash settlement. The company instead entered a Security Agreement, which gave ARM a stake in any assets that arose from license sales.
