Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Entertainment Law & FinanceLJN NewslettersNewsSections

Relativity, Netflix Battle Involves Interplay Between Bankruptcy and Streaming License

By Francis J. Lawall and Lesley S. Welwarth

Entertainment companies be forewarned: Unlike standard civil litigation, a single bankruptcy proceeding can often include multiple seemingly unrelated adjudications that, in hindsight, have a much greater subsequent impact than an unsuspecting litigant might expect. An example of this was evidenced in a recent order entered by U.S. Bankruptcy Judge Michael E. Wiles of the Southern District of New York that barred Netflix from distributing, and even “contending that they have the rights to distribute” two Relativity Media-produced films prior to movie theater release under the terms of the parties' license agreement. In re Relativity Fashion, 15-11989 (Bankr. S.D.N.Y. 2016). (See also, Doc. No. 1948 for the corrected transcript of the decision.) Finding that it was essential to the feasibility of Relativity's confirmed plan and relying on clear confirmation hearing testimony, the bankruptcy court denied Netflix's subsequent claim that it had the right to stream certain films prior to their theatrical release.

Case Background

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.