Claiming that under a 2005 licensing agreement, Disney (DIS) cannot sell certain movies via Apple (AAPL) iTunes or Wal-Mart's (WMT) new video download store, Liberty Media Holding Corp., parent of DirecTV (DTV), filed a lawsuit against the company saying films like "Pirates of the Caribbean: Dead Man's Chest," cannot be sold for a specified period of time because of an exclusivity agreement; meaning only Liberty can offer the movies, according to the lawsuit through its Starz Entertainment.
"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," Starz Entertainment Chairman and Chief Executive Robert Clasen told Reuters. "We are absolutely adamant in protecting our contractual rights and licenses."
Disney's Buena Vista Television division is the recipient of the lawsuit, as they negotiate the deals which allow movies to be sold through the Internet stores. BTV responded by saying that Starz "misread its agreement."
Clasen added that the company may seek damages from all revenue which Wal-Mart, Apple and Disney have collected through the disputed sales.
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