n an announcement Friday, CryptoLogic said that the proceedings concern WagerLogic Ltd's claims that Marvel has committed material breaches of certain provisions of its agreement, relating to the licensing of Marvel comic book characters to WagerLogic Ltd.
CryptoLogic said that it had sought to resolve the issue without resorting to arbitration, but has now been left with no alternative than to initiate arbitration proceedings in order to protect its licensing rights and commercial interests.
The arbitration proceedings have been formally commenced under the JAMS Comprehensive Rules in New York. JAMS is one of the largest private alternative dispute resolution providers specialising in mediating and arbitrating complex, multi-party business and commercial cases.
Last June CryptoLogic secured an extension to its exclusive licensing agreement with Marvel Entertainment Inc, enabling the company to capitalise on lucrative Marvel brands through to 2013. CryptoLogic has since launched more than 17 slot games featuring classic Marvel superheroes including Spider-Man, the Hulk, the Fantastic Four, Daredevil, Blade and the Sub-Mariner.
Last year another Marvel subsidiary, Netherlands-based Marvel Characters B.V, signed a multi-year licensing agreement with CryptoLogic rival Playtech, under which Playtech will be able to utilise Marvel motion picture brands across all of its gaming products including casino, poker, and bingo, and across all of its platforms including online, mobile and TV platforms, as well as on server-based gaming terminals via Videobet.
Shares in CryptoLogic Limited are currently trading at 270.00 pence per share in London this morning.