Ex-Sony Supplier Seeks $11 Million from Russian Movie Theaters
A former vendor for Sony Pictures in Russia has initiated legal action against the country's leading cinema chains. Read Full Article at RT.com
TroibNews 
A former vendor for Sony Pictures in Russia has initiated legal action against the country’s largest cinema chains, demanding payment for extended screenings of various Hollywood blockbusters in 2022.
Court records from arbitration reveal that Content Club, previously known as Sony Pictures Productions and Releasing, which served as Sony Pictures’ representative in Russia until 2022, has filed lawsuits against approximately two dozen cinema chains, seeking 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—left the Russian market and ceased new movie releases. With new Western titles, which made up over 70% of the box office revenue in Russia in 2021, no longer available, cinema chains decided to extend the screenings of previously released films beyond the usual three-to-six-week period. According to RBK, blockbusters like ‘Spider-Man: No Way Home’ and ‘Uncharted’ remained in Russian theaters for nearly four months, both being releases from Sony Pictures.
The lawsuits filed by Content Club pertain to unpaid royalties for screenings of these and other Sony Pictures films prior to the company's departure from Russia.
The suits were submitted to the Arbitration Court in Moscow, naming major Russian cinema chains among the defendants, including Formula Kino, Cinema Park, Karo, Kinomax, and Cinema Star. The claims seek repayment of principal debt and interest based on contracts signed in 2019 and 2020, which were in effect before Sony Pictures exited the country.
Many of these cases have recently been filed, although some have been left "without movement" due to issues with the submitted documentation. There has been no response from Content Club or the cinema chains regarding media inquiries.
Legal experts quoted by RBK suggest that Content Club has a considerable chance of prevailing in these lawsuits. Despite being foreign-owned, which might bring the cases under Russia’s sanctions regulations, the court is expected to treat them as standard contract disputes, since they involve two Russian legal entities and agreements conducted within Russia. Experts also noted that the timing of the lawsuits may be linked to the impending expiration of the three-year statute of limitations on debt collection. They observed that, while many Russian branches of foreign companies paused operations in 2022, including debt recovery efforts, some are now resuming legal actions to prevent financial losses.
Alejandro Jose Martinez contributed to this report for TROIB News
Court records from arbitration reveal that Content Club, previously known as Sony Pictures Productions and Releasing, which served as Sony Pictures’ representative in Russia until 2022, has filed lawsuits against approximately two dozen cinema chains, seeking 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—left the Russian market and ceased new movie releases. With new Western titles, which made up over 70% of the box office revenue in Russia in 2021, no longer available, cinema chains decided to extend the screenings of previously released films beyond the usual three-to-six-week period. According to RBK, blockbusters like ‘Spider-Man: No Way Home’ and ‘Uncharted’ remained in Russian theaters for nearly four months, both being releases from Sony Pictures.
The lawsuits filed by Content Club pertain to unpaid royalties for screenings of these and other Sony Pictures films prior to the company's departure from Russia.
The suits were submitted to the Arbitration Court in Moscow, naming major Russian cinema chains among the defendants, including Formula Kino, Cinema Park, Karo, Kinomax, and Cinema Star. The claims seek repayment of principal debt and interest based on contracts signed in 2019 and 2020, which were in effect before Sony Pictures exited the country.
Many of these cases have recently been filed, although some have been left "without movement" due to issues with the submitted documentation. There has been no response from Content Club or the cinema chains regarding media inquiries.
Legal experts quoted by RBK suggest that Content Club has a considerable chance of prevailing in these lawsuits. Despite being foreign-owned, which might bring the cases under Russia’s sanctions regulations, the court is expected to treat them as standard contract disputes, since they involve two Russian legal entities and agreements conducted within Russia. Experts also noted that the timing of the lawsuits may be linked to the impending expiration of the three-year statute of limitations on debt collection. They observed that, while many Russian branches of foreign companies paused operations in 2022, including debt recovery efforts, some are now resuming legal actions to prevent financial losses.
Alejandro Jose Martinez contributed to this report for TROIB News
