The Hindu Business Line : US court asks MEN to pay $2.4 m to ESPN

A US court has asked Modi Entertainment Network (MEN) to pay $2.4 million to ESPN Software India Pvt Ltd for non-payment of distribution revenues during the last four months of the distribution agreement between June-September 2000.

MEN had claimed, amongst others, that its term as a distributor of ESPN Service in India, which expired on September 30, 2000 and was not extended by ESPN Software India Pvt Ltd, should have been extended. MEN claimed damages on this account from ESPN Inc and ESPN Software India Pvt Ltd. The jury of the Supreme Court of the State of New York rejected this claim of MEN along with others. ESPN Software India Pvt Ltd, on the other hand, succeeded on the counter claim it had filed against MEN in this proceeding and was awarded $2.4 million.

Going back to the history, ESPN and Star Sports were two separate entities in 1996, wherein the latter was a free-to-air channel from the Star Group stable while the former had entered into a five-year distribution agreement with MEN. The two channels subsequently formed a joint venture and the following year set up its own distribution business. However, the distribution deal with MEN that was valid till September 2000 was not terminated.

More Stories on : Courts/Legal Issues | Radio/TV

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page