D&D: Wizards of the Coast Lawsuit Paused After TSR Declares Bankruptcy
Dungeons & Dragons publisher Wizards of the Coast has been locked in a legal back-and-forth with TSR since the latter reformed in 2021, and a recent bankruptcy filing has put their day in court on continued hiatus.
Polygon reported that the newly formed TSR filed for Chapter 7 bankruptcy, citing the ongoing legal pursuit of Wizards of the Coast as one of the many contributing factors to the publisher's lack of profitability. Initially founded in 1973, E. Gary Gygax and Don Kaye's Tactile Studios Rules served as the original publisher for Dungeons & Dragons the following year. The publisher ended its tenure in 1997 when Wizards of the Coast acquired it. Justin LaNasa, Stephen Dinehart and Ernie Gygax, son of the Dungeons & Dragons creator, brought the company back in 2021 and quickly took legal action against Wizards of the Coast.
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Origins of TSR's Lawsuit Against Wizards of the Coast
TSR filed a lawsuit against Dungeons & Dragons' new publisher on the grounds that the company abandoned several trademarks and copyrights during their 1997 acquisition of the company. Wizards of the Coast responded to the initial TSR lawsuit with their own litigation, filing a countersuit for infringement and cybersquatting. The publisher took further action against TSR, petitioning that a judge thwart the company's publication of the role-playing Frontiers: New Genesis under claims that the game contained harmful racist and transphobic content. These accusations were far from the first leveled against the new iteration of TSR, whose owner LaNasa terminated his former political pursuits in the wake of misconduct claims. Previously, female employees at his company accused LaNasa of requesting they wrestle each other in a warm, grits-filled bathtub.
In addition to the pocks in TSR's public perception, its profitability and business practices drew further criticism. The company grossed just $621.93 in total revenue during its first 23 weeks while racking up $384,941.99 in legal fees during the same period. Sustained financial instability resulted in the recent bankruptcy filing. Despite this, the new TSR's website remains functional, and the company continues accepting customer orders.
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The legal history between the publishers began in 2021, and their court date had been pushed back prior to TSR's bankruptcy. TSR and Wizards of the Coast were slated to appear before a court in the Fall of 2023 before the trial got bumped to 2024 by the U.S. District Court in Seattle. Though the lawsuit has been paused, it has yet to be verified if the 2024 trial date will remain intact in the wake of TSR's bankruptcy claim.
Wizards of the Coast publishes Magic: The Gathering in addition to Dungeons & Dragons, with the first of its highly anticipated The Lord of the Rings: Tales of Middle-Earth tie-ins set for release on June 23.
Source: Polygon
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