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UTV, Palador tension rising

'World cinema' operations at center of debate

The struggle between Indian studio group UTV and indie Palador over the launch of “world cinema” operations in the subcontinent got a whole lot messier last week when Palador resorted to the High Court.

Palador claims that UTV has failed to comply with an arbitration decision that would have allowed the two companies to go their separate ways after a breakdown of their joint venture.

An arbitrator ruled Aug. 1 that Palador should return UTV coin within 90 days and that UTV must hand over rights to 75 titles by European and Asian arthouse helmers.

Palador says it has raised $6 million in funding and is raising an additional $10 million. Last month it launched a video-on-demand service hosted on the Tata Sky DTH satellite platform. UTV plans to launch a world cinema channel in India by early 2008.

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