CBS has blocked Sony from canceling its lucrative distribution deals for “Jeopardy!” and “Wheel of Fortune,” while the two sides clash in court over their decades-old contracts.
Sony moved on Monday morning to try to take over distribution of the shows to more than 200 stations around the country, as well as overseas territories. CBS went to court in Los Angeles to obtain a temporary restraining order, which was granted on Thursday by Judge Kevin Brazile.
Sony launched the fight over the venerable game shows last October, arguing that CBS has failed to obtain top dollar in its licensing negotiations and had improperly withheld certain license fees. CBS countersued, arguing that Sony was offering a transparent pretext to try to void their longstanding distribution agreements, after CBS refused a nine-figure buyout offer.
Sony inherited the two shows when it acquired Merv Griffin Enterprises, the original producer, in 1994. The acquisition came with a pre-existing syndication deal with King World, which was bought by CBS in 1999.
The cases remain pending. On Monday, Sony filed an amended complaint and notified CBS’ licensees and other business partners that Sony would be taking over responsibility for distribution effective on Friday.
CBS sought a restraining order on Tuesday, arguing that it would suffer irreparable harm, including incalculable loss of revenues, if the termination were allowed to take effect. Among other things, the network argued that Sony’s move would disrupt pending negotiations in 70 markets.
In response, Sony argued that it had taken the step “reluctantly,” but only after CBS’ “far-reaching, andever-escalating, failure to meet its contractual obligations.”
Sony stated that the transition had been “seamless,” and that it had already delivered episodes for Feb. 10 and beyond to more than 200 affiliates. The producer also argued that CBS had failed to show it is likely to prevail on the merits of their dispute.
The judge granted the order after considering the arguments on both sides.
Both companies issued statements on the latest development.
Sony: “Sony Pictures owns, controls, produces, and finances Jeopardy! and Wheel of Fortune. In light of CBS’s continuous failure to live up to its contractual obligations, SPT believes it has lawfully terminated the distribution agreements with CBS for the shows and accordingly assumed all global distribution functions. Today the Court has instructed SPT to temporarily cease taking on the distribution of the shows until the Court can further hear from the parties on this issue in the near future. To be clear, the Court’s order has no bearing on, and is not indicative of, the eventual outcome of the ongoing litigation. SPT will continue to fight CBS’s egregious mishandling of these beloved shows and will take all necessary legal actions to protect our rights.”
CBS: “We’re pleased the court issued a temporary restraining order against Sony’s unlawful actions. We will continue to seamlessly distribute Wheel of Fortune and Jeopardy! to our station clients like we have for over 40 years.”
