ITV accepts £18m from STV to end legal wrangles

ITV and STV have agreed to call off the legal actions they filed against each other, with the Scottish broadcaster paying £18m to settle.

Downton Abbey: STV opted out of the peaktime drama
Downton Abbey: STV opted out of the peaktime drama

The wrangle started in September 2009 when ITV launched proceedings to recover a gross debt of £38m, which it said was a net debt between £15m and £20m, as a result of STV "not honouring its contractual contributions towards the network programming budget".

STV filed a countersuit two months later seeking £47m in damages from ITV including £12m for exploiting new media rights without its consent and £35m "in respect of the airtime sales agreement by ITV Consumer".

The case was due in court next month.

STV contributes a percentage towards the ITV network programming budget. It is understood STV had opted out of a number of peaktime dramas, including the popular series 'Downton Abbey', without giving the notice ITV was entitled to.

In a joint statement issued today the two sides said they had agreed "the basis of a much more collaborative relationship for the future which will avoid a recurrence of the issues which resulted in legal action".

When asked whether STV had gained anything in regards to new media rights, a spokesman declined to give a clear answer. He said: "It's too early to say how it will translate into hard numbers."

STV was keen to stress the cash impact of the £18m settlement was only £4.8m.

The terms consist of £7.2m in cash payable this year, offset by £2.4m of credit for programme opt-outs in 2011.

The other £10.8m will be payable either in programme rights as at 31 December, or cash, as adjusted, depending on further discussions with ITV.

STV expects to book, in addition to its current provisions, an exceptional charge as a result of this settlement of £9m in its financial results for the first half of 2011.

Both two sides will also have incurred legal costs in pursuing their claims.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Sunday Times' Camilla Cavendish reminds us to value newsbrands

Sunday Times' Camilla Cavendish reminds us to value newsbrands

The media world is a poorer place for the departure of Sunday Times investigative journalist and columnist Camilla Cavendish, says Newsworks' Rufus Olins.

Share
Northern & Shell promotes Chris Kelly to replace Jane Putley

Northern & Shell promotes Chris Kelly to replace Jane Putley

Northern & Shell, which publishes OK! Magazine and the Daily Express, has promoted Chris Kelly to head of print, replacing Jane Putley who is leaving in June to join News UK as head of news.

Share
From gatherers to hunters
[Sponsored feature]

From gatherers to hunters

Through the rise of social networking, technology has transformed media recruitment - but, even in the field of IT employment, it remains very much a people business.

Share

Get news by email