Universal Music vs Flash
p2pnet.net News:- Flash Electronics and East Texas Distributing (ETD) distribute video and DVD products for the movie studios and, “compete in the wholesale video distribution market of selling product to retailers who are not sold directly by the studios,” they say in a statement.
However, after about 25 years in the market, ETD was “forced to close its lucrative video division shortly after Universal [Music] refused to sell product to ETD and Flash and engaged in an active campaign to prevent them from obtaining product elsewhere,” says their press release here.
Flash and ETD sued Universal Music and Video, Ingram Entertainment and VPD, alleging they “fraudulently misappropriated plaintiffs’ customer lists and information and unduly pressured retailers not to buy” from Flash or ETD.
Universal, et al tried to have the case thrown out of court but federal Judge Raymond Dearie, New York (Eastern District), decided in March to allow it to continue and also ruled it can proceed to discovery, says the Flash / ETD statement, released “in response to numerous inquiries and industry speculation” and which goes on:
“Flash and ETD claim that in or about the year 2000, defendants conspired to deprive plaintiffs, wholesale distributors of videos and DVDs, of the opportunity to continue to sell videos and DVDs supplied by Defendant Universal in order to drive them out of business or, at the very least, gain an unfair competitive advantage.
“The suit involves the multi-billion dollar wholesale video market (close to $20 billion in 2003), from which movie studios gross more revenue than from their share of box office receipts. Plaintiffs also contend that Ingram and VPD received Universal product at lower prices than other distributors in violation of the Robinson-Patman Act.
“The court further ruled that plaintiffs could also proceed with their claims that defendants fraudulently misappropriated plaintiffs’ customer lists and information and unduly pressured retailers not to buy from plaintiffs. Plaintiffs seek $30 Million plus treble damages, punitive damages and attorney fees and costs and to change Universal’s current distribution system.”
June 12th, 2004 at 9:01 pm
let the infighting begin!!!
greed will be the ultimate downfall of the pigopolists.