Former Sony vendor demands $11 million from Russian cinemas — RT Business News

A former Sony Pictures vendor in Russia has sued the country’s largest cinemas, seeking payment for extended screenings of several Hollywood blockbusters in 2022.

Arbitration case records show that Content Club, formerly known as Sony Pictures Productions and Releasing (SPPR), which operated as Sony Pictures’ representative office in Russia until 2022, earlier this month filed lawsuits against roughly two-dozen cinema chains, demanding a total of 1 billion rubles ($11 million).

After the escalation of the Ukraine conflict in early 2022, Hollywood’s five largest film studios – Disney, Warner Bros., Sony Pictures, Paramount, and Universal – exited the Russian market and halted new movie releases in the country. In the absence of new Western releases, which accounted for more than 70% of all box office revenue in Russia in 2021, cinema chains extended the run of previously released titles beyond the typical three-to-six-week screening period. According to data from RBK, Hollywood blockbusters such as ‘Spider-Man: No Way Home’ and ‘Uncharted’ remained in Russian theaters for nearly four months. Both are Sony Pictures’ releases.

The claims filed by Content Club relate to outstanding payments for screenings of these and other Sony Pictures’ films prior to its exit from the country.

The lawsuits were filed at the Arbitration Court in Moscow, with all leading Russian cinema chains listed among the defendants, including Formula Kino, Cinema Park, Karo, Kinomax, Cinema Star, and others. The claims seek repayment of principal debt and interest under contracts signed in 2019 and 2020, which predated Sony Pictures’ exit from Russia.

Most of the cases have been recently registered, with several left “without movement” due to flaws in the submitted documents. Neither Content Club, nor representatives of the cinema chains, have responded to media requests for comment.

Legal experts cited by RBK say Content Club has a strong chance of winning the lawsuits. While the company is foreign-owned, which could bring the cases under Russia’s sanctions regulations, the court is likely to handle them as standard contract disputes, as they involve two Russian legal entities and agreements made and executed within Russia. Experts also pointed out that the timing of the lawsuits is tied to the approaching expiration of the three-year statute of limitations on debt collection. They noted that while many Russian branches of foreign companies suspended operations in 2022, including debt recovery efforts, some may now be resuming legal action to avoid financial losses.