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Beach of Contract Dispute Involves Viacom, Time Warner Cable

According to The Hollywood Reporter, media giants Viacom and Time Warner Cable are locked in a battle regarding Time Warner’s plan to allow its customers to watch Viacom channels on their iPads while at home.

After the two companies became locked in a dispute, Time Warner warned it would drop Country Music Television (CMTV), a Viacom station, from its cable package. In response, Viacom has filed a lawsuit in Texas against Time Warner for breach of contract.

Currently, Viacom alleges that it is not getting enough distribution. Trouble regarding CMTV began in April, after Time Warner and Viacom submitted conflicting lawsuits regarding plans for an iPad app. Viacom alleged that such technology resulted in an unlicensed distribution of their programming. Then, Time Warner submitted a reply as well as a counterclaim in the consolidated case, alleging its app was a device for home use only, which would get rid of customers needing to lease set-top boxes, as well as providing more convenience and saving them money.

A spokesperson for Viacom stated that Time Warner has raised issues regarding whether CMTV is in compliance with the requirements of the affiliation agreement between the two companies, and that the prominence of these issues have been raised since the dispute over iPad rights has arisen. These issues prompted Viacom to file a lawsuit in the Texas District Court, alleging that Time Warner breached its contractual obligations to distribute CMTV. Viacom also alleges that Time Warner has interfered tortuously with the relationships of advertisers and CMTV.

According to the article, the details surrounding the advertiser interference are not clear. Viacom has requested that the court seal its petition, which seeks damages. Viacom has requested confidentiality to prevent the disclosure of business arrangements that are highly sensitive.

For over 20 years, Los Angeles business contract breach lawyer Art Matthews of The Matthews Law Firm, Inc., has helped each client determine the best course of action when they are facing a breach of contract dispute. To learn how Mr. Matthews can protect your rights, call 800-449-4850.

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