Coincidentally, the announcement came shortly after Upper Deck reached a settlement with Konami over the Yu-Gi-Oh! trading card game. Until December 2008, Upper Deck had been the distributor of that game outside of Asia. But Upper Deck got caught printing hundreds of thousands of counterfeit cards.
Konami pulled no punches in its press release announcing the settlement,
“This entire situation came as a huge shock to us. As a company that has based their entire business model on producing authentic entertainment and sports licensed products, Upper Deck went against their very core beliefs by counterfeiting Yu-Gi-Oh! TCG Cards,” commented KDE’s Vice President of Card Business Yumi Hoashi. “It was very disheartening to learn that a trusted business partner would take these actions to dupe us and the Yu-Gi-Oh! TCG community.”
The litigation began in October 2008, when KDE discovered that counterfeit cards from the Yu-Gi-Oh! TCG were being sold in Toys “R” Us stores by a sub-distributor for Upper Deck. KDE filed suit, and the sub-distributor told KDE that the counterfeit cards were supplied by Upper Deck.
“As a leading company in this card industry, Upper Deck should have known more than well that counterfeit activities would irreparably harm the trust of Duelists and the integrity of the Yu-Gi-Oh! brand,” said KDE’s Hoashi. Upper Deck initially denied those charges and issued press releases announcing that any suggestion that Upper Deck would be involved in counterfeiting activity is “absurd.”
Failing to own up to its actions, Upper Deck sent out a press release on January 29, 2010 stating its satisfaction with the settlement and how the judge ruled against KDE in several areas. The ruling that United States District Judge Valerie Baker Fairbank made on December 23, 2009 was simple. She ruled that Upper Deck violated trademark, copyright and unfair competition laws by counterfeiting Yu-Gi-Oh! TCG cards.
Blizzard didn’t cite the Konami dispute as its reason for dropping Upper Deck, but certainly any company interested in maintaining its brand would want to think twice (or three or four times) before doing business with Upper Deck after its behavior with the Yu-Gi-Oh! game.
The loss of the license also extends to the World of Warcraft collectible miniatures game.