Video label sues Weinstein Co.

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Spanish-language film company Videocine is suing the Weinstein Co., alleging that the U.S. mini-major owes it nearly $2 million.

The Mexico City-based producer-distributor alleges that TWC in August 2007 committed to a minimum payment of $2 million as part of a home-video distribution agreement but has paid only $300,000.

Sources close to the Weinstein Co., however, have said that the company was unhappy with the quality of the negatives provided and deemed them unreleasable.

The Weinstein Co. and Videocine entered a pact in October 2006 for TWC to distribute 178 Videocine titles on video in the U.S. and Canada, primarily through its Genius subsidiary. Genius is not named in the suit.

Guaranteed payments generally are enforceable under contract law, though contract commitments could be voided if the goods delivered are not considered up to snuff.

Videocine also requested that the deal be terminated as a result of the alleged breach and asked that TWC no longer be able to benefit financially under the agreement.

The companies are said to be pursuing settlement talks.

TWC declined comment on the lawsuit. (partialdiff)
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