Legal Distribution

Industry News

by Jon Compton



Three of Americas top wargaming and hobby distributors, Wargamers West, Armory, and Greenfield Hobby Distributors, Inc., filed suit in Bernaillo County, New Mexico against Games Workshop, the maker of the Warhammer, Warhammer 40,000, and EPIC line of fantasy miniature games and publisher of White Dwarf magazine The suit alleges that on or about September 1, 1995, Games Workshop announced that it would become its own distributor and published new terms for the sale of its product that eliminated the price differential of products sold to distributors and retailers.

After announcing this change, the complaint alleges, Games Workshop actively solicited many of the distributor's customers, despite assurances that such practices would not be implemented.

The suit alleges that this and other practices conducted by the Games Workshop has improperly interfered with the business relationship between the plaintiffs and their customers and violated the Trade Secrets Acts of the states of New Mexico and Maryland. Further, Games Workshop has committed fraud, unfair trade practices, and violated the federal and state anti­trust statues.

The distributors have filed a motion for a temporary restraining order and preliminary injunction against Games Workshop and requested a quick hearing on this motion.

Games Workshop was obviously not impressed by the legal barrage. The October issue of the Games Workshop Retailer Newsletter, Official Rumors, offered a full-page ad to retailers on how to contact Games Workshop for direct mailing. The add gives retailers an 800 number to call that will give the retailer access to promotional items and to a twelve­person staff that will give guidance, make special rack assortments, help new store owners get started, and a plethora of other services. The add also guaranteed that store owners who ordered new releases by Wednesday of any given week would have them by Friday.

Many of the game manufacturing companies offer little sympathy to the distributors in this case. The kind of service that Games Workshop is now providing retailers is exactly the kind of service most other manufacturers wish the current distributors would provide as well. Complaints that distributors aren't paying attention to release notices or other promotional materials sent to them by smaller manufacturers have become commonplace. Ultimately, the consumers will decide who is right; and, at this time, it looks as though Games Workshop will come out on top.

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