Adidas Gives THQ a Run for Their Money with $10MM Breach of Contract Lawsuit

According to a lawsuit filed in Multnomah County Circuit Court, gaming company THQ has caused Adidas more than $10 million in damages after breaching their contract to create gaming software for the sportswear manufacturer’s latest digital device, the miCoach Speed_Cell.

The Speed_Cell, developed at Adidas America in North Portland, is an interactive digital device that quantifies information gathered from multi-directional motion. Users are able to gauge their performance based on speed, distance and time metrics during and after their fitness routines. This latest accessory from the miCoach series was introduced to the public last October.

By promising their product’s capability to sync up with other releases from the miCoach line of electronic training and competition companions, Adidas has now reached an impasse with THQ and its inability to create a program intended to support competition against Nike+ and Garmin.

After both Adidas and THQ signed the agreement in December of 2010, the program (tentatively titled “miCoach 24/7”) was due for a January 2012 launch.

Recent revenue nosedives and corporate downsizing are reportedly to blame for THQ’s inability to seal the deal. The lawsuit notes that employees involved with the program’s development were “let go” before miCoach projects could be completed.

According to THQ’s Chief Financial Offier, Paul Pucino, the company would barely reach half of 2012’s projected sales in 2013. With the aftermath of 240 lost employees, Nasdaq has threatened the company’s delisting due to a lack of stock price boost.

Adidas is looking for a jury trial for monetary damages which will harbor the possibility of rights transferring from the THQ to another vendor. Results of the lawsuit are pending.





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