TV ,,, Televisa Sues Univision Over Royalties
Wednesday May 11, 4:54 pm ET
By Alex Veiga, AP Business Writer
Televisa Sues Univision for Breach of Contract, Claiming Company Failed to Pay Royalties
LOS ANGELES (AP) -- Mexican broadcaster Grupo Televisa is suing Univision Communications Corp. for breach of contract, claiming the U.S.-based, Spanish-language media conglomerate failed to pay $1.5 million in programming royalties.
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Televisa is the second-largest shareholder of Los Angeles-based Univision and licenses exclusive rights to Univision to broadcast its telenovelas and other shows under a deal in effect through 2017.
In the suit, Televisa contends Univision failed to pay programming royalties for broadcasts of the "Premio Lo Nuestro" music awards show.
Until this year, Univision had paid Televisa royalties for the show, according to the lawsuit. Televisa also accuses Univision of altering Televisa programs without consent.
The Mexican company is seeking $1.5 million in royalties and additional damages. It has also asked the court to shield it from any attempt by Univision to recover $5 million in royalties that Univision paid for the awards show in previous years.
In a statement, Univision said the suit was "baseless." Televisa doesn't produce "Premio Lo Nuestro" and is not entitled to royalties, Univision said.
The lawsuit, filed Monday in U.S. District Court in Los Angeles, is the latest sign of trouble between Televisa and Univision's top management.
On Tuesday, Emilio Azcarraga, Grupo Televisa's chairman and president, resigned his position as vice chairman of Univision.
A rift between Azcarraga and Univision Chairman and Chief Executive A. Jerrold Perenchio worsened earlier this year when Perenchio named Ray Rodriguez as president and chief operating officer without the consent of Azcarraga.
Univision shares fell $1.18, or 4.5 percent, to close at $25.32 in Wednesday trading on the New York Stock Exchange.
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