Further legal action taken by STV against ITV
STV has issued further legal proceedings of around £12m against ITV in relation to what it claims is the exploitation of its new media rights.
The two broadcasters have already turned to their lawyers following STV’s decision to opt out of some of ITV’s content, now further action is to be taken as STV claims that ITV has entered into commercial agreements without obtaining the consent of STV beforehand.
The Scottish broadcaster has said that it believes that its new media rights are being exploited.
A statement issued on behalf of STV, explained: “These commercial agreements use and exploit new media rights in STV Central and STV North's licence areas. A claim seeking damages; declaratory relief to determine the precise basis on which such rights are held; and an injunction to prevent ITV Network and/or ITV Broadcasting from entering into any further new media rights agreements without STV’s consent, was filed on 16 November 2009. Although the amount of damages will require expert evidence to determine STV estimates that they could be up to £12m.”
Proceedings are already underway in the separate case of STV’s opt out – with a claim of £38m being issued by ITV and a counterclaim of £35m being made by STV.
This week STV has submitted its defence and an additional counter-claim in respect of the conduct of the Airtime Sales Agreement by ITV consumer. STV has said it also expects to file further claims regarding ‘significant prejudicial behaviour’ on the part of ITV Network and ITV plc.
Rob Woodward, chief executive of STV Group plc, said: “ITV is imposing its brand and service within the STV licence area without our consent, and is not operating in the interests of all the Channel 3 licensees. ITV's actions are detrimental to STV’s brand and business and they are inhibiting our ability to grow as a digital broadcaster. We are ultimately seeking clarity on how new media rights can be exploited, and damages for ITV's actions. We have tried to resolve this through dialogue with ITV but unfortunately we now have no alternative but to resort to legal action. It is essential that we protect and secure STV’s rights within the Channel 3 network and I am confident of our position.”