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Nutech Digital Lawsuit

posted on by Christopher Macdonald
$300,000 in Bounced Checks

ANN spoke to Ken Groove's legal counsel regarding their lawsuit against NuTech Digital. There are two principle issues at the core of the lawsuit. Ken Groove claims that checks worth $300,000 bounced because of insufficient funds. The checks were written issued by NuTech Digital to cover licensing fees. Additionally, Ken Groove states that NuTech Digital allowed Ken Groove's properties to be streamed online, a right that was not given to NuTech in the licensing contracts.

Currently entire episodes can be downloaded from NuTech's website for $9.95.

Furthermore, Ken Groove believes that NuTech may be dumping the products on the market at prices lower than permitted in the contract.

Ken Groove is seeking an injuction forcing NuTech to cease all activities, including distribution, and a return of the masters to Ken Groove. Ken Groove is also hoping to recuperate the money it is owed by NuTech.

It is Ken Groove's intent that NuTech would no longer be able to distribute the titles that had been licensed.

The affected titles are:

Blue Eyes
Class Reunion Again
Dark Shell
Dream Hazard
Lemon Heres
Maids in Dream
Momone Chu 2
Princess Memory 2
Romance - Flash Of The Sword 2 (Romance wa Tsurugi no Kagayaki II)
Shuusaku No Yoru

Since January 2004, Nutech's stock value has fallen from a high above $1 to $.10 currently. According to the company's profile on Yahoo hentai accounts for 59% of NuTech's sales, however the company is moving away from the distribution of animation and refocusing on producing, filming, and distributing popular music concerts.

Representatives from NuTech are out of the office this week and unable to comment.

Addendum Please note that the "Blue Eyes" listed above is not the Blue Eyes manga by Tohru Nishimaki and licensed by Icarus Publishing.

This article has a follow-up: Nutech Blue Eyes Clarification (2005-06-02 17:49)
follow-up of Ken Groove Sues Nutech Digital
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