Starz, Disney Settle Dispute
Terms of Settlement in Breach-of-Contract Lawsuit Not Disclosed
By Todd Spangler -- Multichannel News, 12/10/2008 8:50:00 AM MT
Starz Entertainment and Disney-ABC Domestic Television have settled a lawsuit—in which Starz accused Disney of violating its contract by providing movies to Internet retailers during windows guaranteed to the premium cable network—for undisclosed terms.
Starz in March 2007 sued Disney’s TV distribution unit, then called Buena Vista Television, alleging Disney violated the terms of their agreements by making movies like Cars and Pirates of the Caribbean: Dead Man's Chest available through Apple’s iTunes Store and other online outlets.
A notice filed Dec. 2 in U.S. District Court for the Central District of California, where the case was being heard, said the parties “have reached an agreement with respect to the settlement of this matter that is in the process of being finalized.”
Neither Starz nor Disney-ABC Domestic Television would comment; a Starz spokesman said the terms of the settlement preclude any public comment.
In an interview after filing suit, Starz CEO Bob Clasen said the introduction of the Apple TV set-top spurred his company to take legal action, because that device would allow iTunes customers to watch the same Disney movies on TV as those potentially offered by Starz.
One of the key legal questions in the case was the contractual definition of “television.”
Starz argued that iTunes is a “television” service, for the purposes of the 1993 and 1999 agreements between Starz and Buena Vista Television. Disney countered that the contracts with Starz did not grant the pay-TV provider exclusivity for all definitions of “television” distribution.
In a filing in July, Starz had alleged that Disney “expanded its breach and infringement” of Starz’s rights since the suit was filed, through deals with Internet-movie distributors Vudu and CinemaNow.
Disney-ABC Domestic Television, which handles television-distribution agreements for Disney films, said in a filing the case had forced it to produce 157,000 documents, estimated to be more than 3 million pages, resulting in delays to the proceedings.
Starz Sues Disney Over Online Deals
03/22/2007TiVo To Rent Disney Flicks
05/28/2008Apple TV Broke Starz's Back
03/25/2007
