CANNES — Miramax Films has won its arbitration case against Korean conglomerate Hyundai for underreporting of box office and television revenues and improper deduction of certain expenses.
Miramax brought the action against two Hyundai subsidiaries, Diamond Ad and Hyundai Broadcast System, in connection with pics including “The English Patient” and “Cop Land.”
With regard to “Patient,” Miramax had accused Hyundai of delays in submitting its box office reports. Miramax said that Hyundai’s eventual submission of figures varied widely from Miramax’s own set of numbers.
In addition, Miramax said that Hyundai had breached its obligations by taking improper deductions for certain distribution expenses, and by failing to disclose to Miramax the details of its TV deals for Miramax pics.
Miramax therefore withheld materials on “Cop Land” in light of Hyundai’s conduct.
“Miramax is sensitive to the economic climate around the world and it is unfortunate that this particular situation came down to the need for arbitration,” said Miramax chairman of worldwide distribution Rick Sands. “However, Miramax’s overwhelming victory clearly indicates that film license agreements are universally enforceable, and we will continue to expect contractual compliance by our licensees worldwide.”
Attorneys Daniel Petrocelli and Robert Welsh repped Miramax in the American Film Marketing Assn.-led arbitration.
Meanwhile, Miramax Films has extended its first-look writing and producing agreement with Lucky Gold. Gold is currently adapting “Flanagan’s Run,” “Cherokee Rose” and an English-language remake of “House of Angels” for Miramax.