Nintendo is having an argument with what was its top distributor in Taiwan, Hakuyu. Hakuyu is filing a lawsuit against Nintendo because it claims its distribution rights were ended unfairly – just as its CEO is removed from the board of subsidiary Nintendo Phuten.
According to Hakuyu’s CEO, Nintendo has acted in a way that “violated business morals”. He claims years of work building up Nintendo’s presence in Taiwan’s retail channel has been destroyed without reason.
Nintendo terminated its contract with Hakuyu in March this year. It’s alleged that as part of the distributor contract, Nintendo insisted limiting which products from rival brands Hakuyu could sell.
Of course, as a company that has built a business selling Nintendo products, its profits, partners and employees have all been affected.
That’s why it is suing Nintendo for the right to keep selling products and demanding compensation of $24.28 million, which it claims just about makes up its losses. It’s a civil lawsuit filed in the Taipei District Court.
Although Digitimes says Nintendo Phuten isn’t commenting, the lawsuit is reaching the top brass at Japan’s HQ.