March 22, 2007
By Anthony Crupi
Liberty Media’s Starz Entertainment on Thursday filed suit against the Walt Disney Co., alleging that the company’s Buena Vista Television subsidiary allowed third-party video download services to sell a number of titles that were contractually licensed to Starz.
With the lawsuit, filed in the U.S. District Court for the Central District of California, Starz aims to block Buena Vista from continuing to sell the contested titles via etailers like Apple’s iTunes and Walmart.com.
Starz said that under the terms of earlier agreements with Buena Vista, Disney is prohibited from selling its films for transmission over the Internet before Starz’ first exclusive license period expires.
The suit notes that since the first deal was struck in 1993, Starz has paid “over $1 billion” to reserve periods of exclusivity for the Disney titles.
Disney’s current deal with Starz lasts through 2010, at which point the studio has the option of renewing for another three years.
Clasen also noted that it was somewhat ironic that Disney was in violation of a copyright agreement, given that the film studios “have been very aggressive, and quite rightly so, in protecting their copyrights, particularly with regard to the Internet ... 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.”
The suit seeks to prevent Buena Vista from “continuing to infringe on Starz’ rights” and asks for all profits that have accumulated as a result of the alleged infringement.
I found this article interesting because Disney was in violation of a copyright agreement because of the company Buena Vista's. Disney was prohibited from selling its films over the internet before the deal with Starz untiil 2010, then the studio will have an option of renewing for another three years. This article relates to the Fair Use of copyrighted material and the U.S. code 107. Copyright laws are to prevent others from unauthorized reproduction or modification for a work of author ship.
-Vivian Yu
http://www.brandweek.com/bw/search/article_display.jsp?vnu_content_id=1003561827