France fines Toei Animation $3 million

Written by Mark Schilling
Thursday, 21 February 2008
Story Categories: Animation, Japan, Toei, TOKYO -- A French commercial court has ordered toon house Toei Animation to pay $2.93 million to Paris-based Tokyo Business Consultant SARL in compensation for the loss of its agency biz. TBC sued Toei because it was dissatisfied with Toei's terms for ending their business partnership. The company originally demanded $50 million, including a two-year consulting fee and penalties. Toei has not yet decided to appeal the ruling, but has earmarked a reserve for the $2.93 million payment. Toei signed the original agency deal with TBC in 1998, but in September 2003 asked for a revision in line with the company's then current plans for overseas expansion. The two sides could not reach an agreement, however. On June 28 of 2004, Toei ended the agency arrangement with TBC and in December of the same year launched it own Paris office, Toei Animation Europe. In April of 2005 TBC filed suit in a Paris commercial court, claiming that Toei had violated the contractual terms for severing their tie-up and demanded compensation.