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A decade-long legal battle between Fashion TV BVI, FTV India and Modi Entertainment Network(MEN) comes to an agreement with the signing of an MOU.
FTV India and Modi Entertainment Networks (MEN) have decided to work together under a new 15-year MoU whereby FTV will be free to assign or sell its rights to any third party.
In return, FTV will have to pay a license fee of $2 million or 22.5% of the total deal value, whichever is higher, to MEN. Both parties will also withdraw all pending cases filed against each other within a month.
Further the amount of $2 million will not increase by more than 20% every three years," said the new MoU filed as part of the joint petition before Supreme Court.
MEN is a joint venture between Lalit K Modi and Walt Disney. The matter relates to a decision in 2010 by Fashion Television BVI, the global broadcaster of FTV, to terminate its contract with the Indian partner Fashion Television India following differences over sharing revenue and outstanding payments. FTV India is the licensee of FTV BVI via MEN.
FTV and its Indian partner had entered into a five-year contract in August 2001 for exclusive distribution of the channel in the Territory (that is, India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and Maldives). But within two years, the global broadcaster in 2003 alleged breach of contract by the Indian partner and threatened to terminate the contract and de-encrypt the signals.
As FTV went free to air the cable operators discontinued paying the channel charges of FTV and also refused to clear the outstanding dues of the Indian company, thereby causing heavy losses, the petition filed by FTV India had stated.
Battle between FTV India and MEN ends
FTV India and Modi Entertainment Networks (MEN) have decided to work together under a new 15-year MoU whereby FTV will be free to assign or sell its rights to any third party.
In return, FTV will have to pay a license fee of $2 million or 22.5% of the total deal value, whichever is higher, to MEN. Both parties will also withdraw all pending cases filed against each other within a month.
Further the amount of $2 million will not increase by more than 20% every three years," said the new MoU filed as part of the joint petition before Supreme Court.
MEN is a joint venture between Lalit K Modi and Walt Disney. The matter relates to a decision in 2010 by Fashion Television BVI, the global broadcaster of FTV, to terminate its contract with the Indian partner Fashion Television India following differences over sharing revenue and outstanding payments. FTV India is the licensee of FTV BVI via MEN.
FTV and its Indian partner had entered into a five-year contract in August 2001 for exclusive distribution of the channel in the Territory (that is, India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and Maldives). But within two years, the global broadcaster in 2003 alleged breach of contract by the Indian partner and threatened to terminate the contract and de-encrypt the signals.
As FTV went free to air the cable operators discontinued paying the channel charges of FTV and also refused to clear the outstanding dues of the Indian company, thereby causing heavy losses, the petition filed by FTV India had stated.
Battle between FTV India and MEN ends
