Starz Sues Disney Over Movie Downloads
Jack McGoughey
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Liberty Media Holding Corp.'s Starz Entertainment cable network announced Thursday that it is suing Walt Disney Co. for allowing other movie download services to sell its titles despite being exclusively 
licensed to Starz.
The lawsuit was filed in the U.S. District Court in Los Angeles. It was brought by Starz against Disney's Buena Vista Television, which signed deals this year to sell movies on both Apple Inc.'s iTunes online store and Wal-Mart Stores Inc.'s new movie download service.
The lawsuit states that Disney is barred under a 2005 licensing agreement with the Starz network from selling some of its films, such as "Pirates of the Caribbean: Dead Man's Chest." Under the agreement Disney can't transmit such films over the internet before and during a period of exclusivity agreed upon for Starz.
Starz has paid over $1 billion for exclusive rights to Disney films since 1993 according to the lawsuit. Starz also has the rights to offer the films on Vongo, its internet subscription download service.
Robert Clasen, chief executive and chairman of Starz Entertainment, says that talks had ended in failure and the company had no choice left but to sue.
"Our agreements clearly prohibit them from selling their movies by electronic download over the internet while they are exclusive to Starz. If Disney is permitted to violate our contract in this manner, it will undermine the integrity of copyright in general which is a cornerstone of our industry."
"We are absolutely adamant in protecting our contractual rights and licenses," Clasen said. "Our issue is that the contract has a clear prohibition from them doing this and we gave them notice, had a number of exchanges and had meetings and they denied our request for relief."
Buena Vista Television released a statement that said ""Starz misreads its agreement ... and its claim is without merit. Buena Vista Television retained and has the right to sell its motion pictures in a wide range of mediums."
Disney has named technology including the electronic distribution of content, as one of Disney's business priorities as it expands in the global marketplace.
Starz Sues Disney Over Movie Downloads
The lawsuit was filed in the U.S. District Court in Los Angeles. It was brought by Starz against Disney's Buena Vista Television, which signed deals this year to sell movies on both Apple Inc.'s iTunes online store and Wal-Mart Stores Inc.'s new movie download service.
The lawsuit states that Disney is barred under a 2005 licensing agreement with the Starz network from selling some of its films, such as "Pirates of the Caribbean: Dead Man's Chest." Under the agreement Disney can't transmit such films over the internet before and during a period of exclusivity agreed upon for Starz.
Starz has paid over $1 billion for exclusive rights to Disney films since 1993 according to the lawsuit. Starz also has the rights to offer the films on Vongo, its internet subscription download service.
Robert Clasen, chief executive and chairman of Starz Entertainment, says that talks had ended in failure and the company had no choice left but to sue.
"Our agreements clearly prohibit them from selling their movies by electronic download over the internet while they are exclusive to Starz. If Disney is permitted to violate our contract in this manner, it will undermine the integrity of copyright in general which is a cornerstone of our industry."
"We are absolutely adamant in protecting our contractual rights and licenses," Clasen said. "Our issue is that the contract has a clear prohibition from them doing this and we gave them notice, had a number of exchanges and had meetings and they denied our request for relief."
Buena Vista Television released a statement that said ""Starz misreads its agreement ... and its claim is without merit. Buena Vista Television retained and has the right to sell its motion pictures in a wide range of mediums."
Disney has named technology including the electronic distribution of content, as one of Disney's business priorities as it expands in the global marketplace.