Ex-Sony supplier seeks $11 million from Russian movie theaters
A previous vendor for Sony Pictures in Russia has initiated legal actions against the country's leading cinema chains. Read Full Article at RT.com.
TroibNews 
A former vendor for Sony Pictures in Russia has filed a lawsuit against the largest cinema chains in the country, seeking payment for extended screenings of various Hollywood blockbusters in 2022.
According to records from the arbitration case, Content Club, which was previously known as Sony Pictures Productions and Releasing, and functioned as Sony Pictures’ representative office in Russia until 2022, filed lawsuits against approximately two dozen cinema chains earlier this month, demanding a total of 1 billion rubles.
Following the escalation of the Ukraine conflict in early 2022, the five largest Hollywood film studios—Disney, Warner Bros., Sony Pictures, Paramount, and Universal—withdrew from the Russian market, ceasing new movie releases. As a result of the absence of new Western films, which represented more than 70% of box office revenue in Russia in 2021, cinemas extended their screenings of previously released movies beyond the usual three-to-six-week window. RBK reports that Hollywood blockbusters like ‘Spider-Man: No Way Home’ and ‘Uncharted’ remained in Russian theaters for nearly four months; both films are released by Sony Pictures.
The lawsuits initiated by Content Club focus on unpaid royalties related to the screenings of these and other Sony Pictures films that took place before the company exited the country.
These legal actions were submitted to the Arbitration Court in Moscow, with prominent Russian cinema chains, including Formula Kino, Cinema Park, Karo, Kinomax, and Cinema Star, named among the defendants. The lawsuits demand the repayment of principal debt and interest based on contracts established in 2019 and 2020, prior to Sony Pictures’ departure from Russia.
Most of the lawsuits have recently been registered, though several remain “without movement” due to issues in the submitted documents. Neither Content Club nor the representatives of the cinema chains have responded to media requests for comment.
Legal experts referenced by RBK indicate that Content Club has a robust likelihood of succeeding in these lawsuits. Despite being foreign-owned—potentially bringing the cases under Russia’s sanctions regulations—the court is likely to view them as standard contract disputes since they involve two Russian legal entities and agreements executed in Russia. Experts also noted that the timing of the lawsuits aligns with the impending expiration of the three-year statute of limitations for debt collection. They pointed out that, while many Russian branches of foreign companies halted operations in 2022, including debt recovery efforts, some are now beginning to pursue legal action to mitigate financial losses.
Rohan Mehta for TROIB News
According to records from the arbitration case, Content Club, which was previously known as Sony Pictures Productions and Releasing, and functioned as Sony Pictures’ representative office in Russia until 2022, filed lawsuits against approximately two dozen cinema chains earlier this month, demanding a total of 1 billion rubles.
Following the escalation of the Ukraine conflict in early 2022, the five largest Hollywood film studios—Disney, Warner Bros., Sony Pictures, Paramount, and Universal—withdrew from the Russian market, ceasing new movie releases. As a result of the absence of new Western films, which represented more than 70% of box office revenue in Russia in 2021, cinemas extended their screenings of previously released movies beyond the usual three-to-six-week window. RBK reports that Hollywood blockbusters like ‘Spider-Man: No Way Home’ and ‘Uncharted’ remained in Russian theaters for nearly four months; both films are released by Sony Pictures.
The lawsuits initiated by Content Club focus on unpaid royalties related to the screenings of these and other Sony Pictures films that took place before the company exited the country.
These legal actions were submitted to the Arbitration Court in Moscow, with prominent Russian cinema chains, including Formula Kino, Cinema Park, Karo, Kinomax, and Cinema Star, named among the defendants. The lawsuits demand the repayment of principal debt and interest based on contracts established in 2019 and 2020, prior to Sony Pictures’ departure from Russia.
Most of the lawsuits have recently been registered, though several remain “without movement” due to issues in the submitted documents. Neither Content Club nor the representatives of the cinema chains have responded to media requests for comment.
Legal experts referenced by RBK indicate that Content Club has a robust likelihood of succeeding in these lawsuits. Despite being foreign-owned—potentially bringing the cases under Russia’s sanctions regulations—the court is likely to view them as standard contract disputes since they involve two Russian legal entities and agreements executed in Russia. Experts also noted that the timing of the lawsuits aligns with the impending expiration of the three-year statute of limitations for debt collection. They pointed out that, while many Russian branches of foreign companies halted operations in 2022, including debt recovery efforts, some are now beginning to pursue legal action to mitigate financial losses.
Rohan Mehta for TROIB News
