A still from X-Men: The Last Stand
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20th Century Fox Sues Russian Partner
Major Hollywood studio 20th Century Fox, a subsidiary of Fox, Inc., Rupert Murdoch's News Corp., has filed suit against Gemini Film International. The Russian company is co-owned by Russian businessman Michael Shlikht and German film magnate Bodo Scriba, who owns an 80-percent share in the company. It is accused of not paying royalties for the rental of Fox films, which include Star Wars, Fight Club, Ice Age and X-Men, in Russia and the CIS from 2000 to 2006. Experts estimate that Gemini owes the American company $65 million for 2003-2005 alone. Gemini and 20th Century Fox lawyer Richard Stone declined to comment on the case.
The first hearing in the case will be next week in Los Angeles. The suit claims that Gemini entered into a contract with Fox without the intention of fulfilling it. Furthermore, the claimants say that Gemini transferred funds from Gemini to businesses belonging to Scriba in Germany. The court will decide the sum of the claims against Gemini. The theater receives half of the box office receipts from the rental of a film, with the other half going to the distributor and rights holder, divided according to agreement. Market insiders say the distributor usually received 10-15 percent of that amount.
Gemini was the exclusive distributor for Fox until April 2006, when Fox opened its own office in Russia, headed by Shlikht, and also set up a joint enterprise with Gemini. Shlikht is a well-known figure in the Russian film world. He is also the owner of 20 percent of the Capella company, which rents films, 20 percent of Kinlogistika and 20 percent of the Amadeus publishing company. He owns 25 percent of the German film distributor A-Company and a share in Monumental Picture, which produces films in conjunction with Sony Pictures Entertainment.
In the event the Los Angeles court rules in favor of Fox, it will have difficulties collecting its money, since Gemini has filed for bankruptcy. Shlikht has also sued Gemini and Scriba Film Holding GmbH demanding that “the decision of the general meeting of March 28, 2008, be ruled invalid.” A source familiar with the situation explained that Scriba is refusing to pay any share of the debt to the American company because “he did not take active part in the Gemini's business.”
www.kommersant.com
All the Article in Russian as of Apr. 14, 2008
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