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Tommo planning to take action in Neo Geo X sales feud with SNK

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Manufacturer and publisher Tommo Inc. continues to deny any breach of contract in its agreement with SNK Playmore to distribute the Neo Geo X Gold handheld and software and is planning to take action against SNK, the company announced today.

In a press statement sent to Polygon, Tommo states that it responded to "a flurry of communications" from SNK to Tommo's U.S. distribution partners today. The company states Tommo has not strayed from its obligations as described in its agreement with SNK, and that it is still authorized to market and sell these products and "will seek all legal remedies to maintain its licensee standing."

"The agreement between Tommo and SNK provides specific mechanisms to resolve issues the parties may have with each other; the agreement does not allow SNK to unilaterally pull-the-plug on the rights conferred," Tommo CEO Jonathan Wan said in a press statement. "Unfortunately, SNK has both failed and refused to use a single contractual remedy to resolve whatever differences exist in this matter, refused our numerous requests to discuss any issues at hand and refuses to consider any good faith proposals we have put forth, instead they are trying to bully U.S. retailers with scare tactics. Their threats and accusations have harmed the Neo Geo X product marketing efforts, sales channels, and have cost Tommo significant financial losses."

At this time, Tommo is planning to take action to reaffirm its stance on the agreement with SNK and Tommo's rights to sell the Neo Geo X Gold and its software. The company has already contacted its retail partners and told them they should continue to sell Neo Geo X products.

Last October, SNK Playmore sent a cease and desist notice to Tommo for the manufacturing, distribution, promotion and sales of the Neo Geo X Limited Edition, SNK NeoGeo X Arcade Stick, and software Mega Pack Volume 1 and Classics Volumes 1 through 5.

"In order to protect our intellectual property rights such as 'NeoGeo' and 'SNK,' decisive measures will be taken against all unapproved Neo Geo X products not subject to the License Agreement," the notice read.

Production was briefly halted before resuming after Tommo denied breach of contract with SNK and announced its plans to continue distributing the products.