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Group Profile | Businesses |
Litigation
| Risk Factors
measures suspending Canal+ Group’s agreement with the National Rugby
League as from the 2015-2016 season and mandated that a new call
for tenders process be organized. Canal+ Group and the National Rugby
League appealed this decision before the Paris Court of Appeal.
On October 9, 2014, the Paris Court of Appeal dismissed the appeal of
Canal+ Group and the National Rugby League and directed the National
Rugby League to complete a new tender process for rights to the “TOP
14” for the 2015-2016 season as well as the following seasons by no
later than March 31, 2015. On October 30, 2014, Canal+ Group appealed
against this decision.
Action brought by the French Competition
Authority regarding Practices in the Pay-TV Sector
On January 9, 2009, further to its voluntary investigation and a complaint
by Orange, the French Competition Authority sent Vivendi and Canal+
Group a notification of allegations. It alleges that Canal+ Group has
abused its dominant position in certain Pay-TV markets and that Vivendi
and Canal+ Group colluded with TF1 and M6, on the one hand, and with
Lagardère, on the other. Vivendi and Canal+ Group have each denied
these allegations.
On November 16, 2010, the French Competition Authority rendered a
decision in which it dismissed the allegations of collusion, in respect of
all parties, and certain other allegations, in respect of Canal+ Group. The
French Competition Authority requested further investigation regarding
fiber optic TV and catch-up TV, Canal+ Group’s exclusive distribution
rights on channels broadcast by the group and independent channels
as well as the extension of exclusive rights on TF1, M6 and Lagardère
channels to fiber optic and catch-up TV. On October 30, 2013, the French
Competition Authority took over the investigation into these aspects of
the case.
Canal+ Group against TF1, M6, and France Télévision
On December 9, 2013, Canal+ Group filed a complaint with the French
Competition Authority against the practices of the TF1, M6 and France
Télévision groups in the French-language film market. Canal+ Group
accused them of inserting pre-emption rights into co-production
contracts, in such a way as to discourage competition. The French
Competition Authority is examining the case.
Canal+ Group against TF1, and TMC Régie
On June 12, 2013, Canal+ Group SA and Canal+ Régie filed a complaint
with the French Competition Authority against the practices of TF1
and TMC Régie in the television advertising market. Canal+ Group SA
and Canal+ Régie accused them of cross-promotion, having a single
advertising division and refusing to promote the D8 channel during its
launch. The French Competition Authority is examining the case.
Private Copying Levy Case
On February 5, 2014, a claim was filed with Court of First Instance of
Nanterre (
Tribunal de grande instance de Nanterre
) by Copie France
who is seeking compensation in respect of external hard drives used
in connection with the G5 set-top boxes. Copie France claims that the
external drive used by Canal+ is “dedicated” to the set-top box and
therefore it should be treated as an integrated hard drive. Copie France
believes that the applicable amount of the compensation is €45 per hard
drive as opposed to €8.7.
Aston France against Canal+ Group
On September 25, 2014, Aston notified the French Competition Authority
about Canal+ Group’s decision to stop selling its satellite subscription
called “cards only” (enabling the reception of Canal+/Canalsat programs
on Canal Ready-labeled satellite decoders, manufactured and distributed
by third parties, including Aston). In parallel, on September 30, 2014,
Aston filed a request for injunctive relief against Canal+ Group before
the Commercial Court of Paris, seeking a stay of the decision of the
Canal+ Group to terminate the Canal Ready partnership agreement and
thus stop the marketing of satellite subscriptions called “cards only”. On
October 17, 2014, the Paris Commercial Court issued an order denying
Aston’s requests. On November 4, 2014, Aston appealed this decision
and, on January 15, 2015, the Paris Court of Appeal, ruling in chambers,
granted its requests and suspended the decision of Canal+ Group to
stop selling its “cards only” subscriptions until the French Competition
Authority renders its decision on the merits of the case.
Complaints against Music Industry
Majors in the United States
Several complaints have been fi led before the Federal Courts in New
York and California against Universal Music Group and the other music
industry majors for alleged anti-competitive practices in the context of
sales of CDs and Internet music downloads. These complaints have been
consolidated before the Federal Court in New York. The motion to dismiss
fi led by the defendants was granted by the Federal Court on October 9,
2008, but this decision was reversed by the Second Circuit Court of
Appeals on January 13, 2010. The defendants filed a motion for rehearing
which was denied. They filed a petition with the US Supreme Court which
was rejected on January 10, 2011. The discovery process is underway.
Complaints against UMG regarding
Royalties for Digital Downloads
Since 2011, as has been the case with other music industry majors,
several purported class action complaints have been fi led against UMG
by recording artists generally seeking additional royalties for on line sales
of music downloads and master ringtones. UMG contests the merits of
these actions.
Capitol Records and EMI Music Publishing against MP3tunes
On November 9, 2007, Capitol Record and EMI Music Publishing filed a
joint complaint against MP3tunes and its founder, Michael Robertson,
for copyright infringement on the sideload.com and mp3tunes.com
websites. The trial was held in March 2014, and, on March 19, 2014, the
jury returned a verdict favorable to EMI and Capital Records. It found the
defendants liable for knowingly allowing the unauthorized content on the
websites. On March 26, 2014, the jury awarded damages in the amount
of $41 million. On October 30, 2014 the Court confirmed the verdict but
entered judgment in the reduced amount of $12.2 million. The defendants
have appealed against the judgment.
Mireille Porte against Interscope Records, Inc.,
Stefani Germanotta and Universal Music France
On July 11, 2013, the artist Mireille Porte (AKA “Orlan”) filed a complaint
against Interscope Records, Inc., Stefani Germanotta (AKA “Lady
Gaga”) and Universal Music France with the Paris Tribunal of First
Instance (Tribunal de Grande Instance de Paris) for the alleged copyright
infringement of several of Orlan’s artistic works.
James Clar against Rihanna Fenty,
UMG Recordings, Inc. and Universal Music France
On June 13, 2014, the artist James Clar filed a complaint against Rihanna
Fenty, UMG Recordings, Inc. and Universal Music France before the Paris
Tribunal of First Instance (
Tribunal de Grande Instance de Paris
) for the
alleged infringement of his work.
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Annual Report 2014