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Ohio's Ohayocon Owners Sue Sekaicon Organizers for Theft of Trade Secrets

The Cultural Exchange Society (CES), the owners of Ohio-based anime convention Ohayocon, filed a civil lawsuit against Sekai Guild, the organizers of the new Ohio-based convention Sekaicon, on January 16. The suit alleges that the Sekaicon organizers, as former Ohayocon staff members, misappropriated "confidential business information, and trade secrets" from Ohayocon.

The suit further alleges that the former Ohayocon staff members attempted to "extort" control of the convention from Cultural Exchange Society President Melissa Ann Phelps in a "fraudulent" attempt to organize the convention's team. It states that upon failure, the former staff used the misappropriated assets to interfere with the business and private lives of organization members, as well as publicly defame the members to promote Sekaicon. The suit states that Phelps and other members have and continue to receive death threats online.

In addition, the suit claims that Jared Hightower, former Ohayocon staff members and member of the Conventions of Ohio Volunteer Event Network (COVEN), a collective formed by former Ohayocon volunteers who sought to address concerns with Ohayocon's governing body, "breached his fiduciary duties to CES by secretly coordinating with COVEN and the 'Senior Leadership' to harm it, and with Sekai Guild to compete with it."

As an example of Sekaicon's theft of Ohayocon's assets, CES provided an example of the use of collectible ribbons related to various aspects of the convention. In a social media post, Sekaicon said that it is "another convention where ribbons are a big part," adding that Ohio-based conventions Colossalcon and Matsuricon also use them.

The suit seeks compensation for damages and reimbursement of legal costs.

Ohayocon 2025 took place from January 31 to February 2, 2025. The event moved from Columbus to a new location, the Dayton Convention Center in Dayton. Sekaicon will run from April 11-13 at Newark near Columbus.

Ohayocon's senior leadership changed in November, with Stephen (Fluffy) Baker taking over as convention director. William T. as associate convention director, Xander S. as the director of operations, and Andrew T. as the director of social media, public relations, and marketing.

Background

Ohayocon 2024 took place in January 2024. However, over 91 individuals, including former senior leadership members and year-round volunteers, boycotted the convention last year following the termination of Cody Marcum, Ohayoncon's former Convention Chair who had been with them since 2009, and Erin [last name withheld by request], the former Director of Marketing.

Talks between COVEN and the CESI Board of Directors (CESI) began as early as March 2023. COVEN's demands included fair compensation, the prohibiting of CESI board members “from receiving compensation over the average compensation value of staff leaders who do not sit on the board,” the immediate adoption of a code of conduct that everyone would be beholden unto, more transparency in budgetary matters, updated labor policies, and for CESI's “outright purchase and ownership of Ohayoconʼs brand materials, including logo and mascot.”

There were arguments regarding topics such as finances. Ultimately, it was a logo dispute regarding the convention's official logo at the time — a red cross in a circle with a white background — which was assumed to have violated the Geneva Conventions, and a new "sakura" logo — another red, circular logo, but with a white sakura flower in the center — that eventually led to Marcum's termination. At the Red Cross's request, Ohayocon modified its logo by adding a blue background, which the Red Cross approved. The previous senior leadership team later decided that this adjustment was not sufficient and opted to switch to the Sakura design, which had copyright concerns revolving around Sakura of America's similar logo. Ohayocon received feedback regarding the design and declined its request to revert to the previous logo. According to the CESI, Marcum had changed the logo without their approval. The CESI requested Marcum and Erin provide access to the convention's social media platforms and other necessary login information. Following their refusal, Ohayocon decided to terminate Marcum's position, voting to remove him and former Director of Marketing Erin in October 2023.

While there is more to the full story that has been detailed here, this all eventually led to the resignation of several of the convention's senior leadership members and boycott of last year's event. According to Ohayocon, nine senior leadership members submitted their resignations in protest. While some staff members signed the COVEN manifesto, they were welcomed back to staff Ohayocon and are still part of the team.

Sources: Hamilton County Court Records (Case A 2500277), Nerd and Tie (Trae Dorn, link 2)