Part 7/13:
The problem is worsened by inconsistent contract terms—some creators report variable deals, low royalty rates, or having to buy back their rights at significant personal expense. This is reminiscent of the Tokyo Pop crisis in the late 2000s, where contractual breaches and market collapse left many creators with damaged careers.
The Company’s Response: Damage Control and Public Statements
Following the outrage, Action Labs issued a statement attempting to reassure creators and fans. They acknowledged the issues, attributing their troubles partly to the pandemic, staff turnover, and internal mismanagement. They denied intentionally holding books hostage or refusing to pay owed royalties, asserting that they are trying to fulfill contractual obligations and asking for patience.