US: Judge tosses Hollywood exclusive movie dealing suit

As the US Department of Justice is examining agreements between Hollywood studios and movie theatres, reports say a federal judge tossed a lawsuit filed by Starlight Cinemas against Hollywood giant Regal Entertainment Group.

Reports emerged last week that the DOJ was examining the practice of so-called “clearance” agreements between movie studios and theatre chains that give exclusive rights to movie theatres to run films in certain markets. The controversy dates back to a 1948 Supreme Court decision on those exclusivity agreements, reports say.

Now, a federal judge in California has dismissed Starlight’s claims against Regal that it unfairly blocked Starlight, which runs a 15-screen theatre in Corona, California, from gaining the rights to show major films.

In his decision last Thursday, US District Judge Manuel Real ruled that Starlight’s “allegations are mere legal conclusions, without any specifics, and are therefore insufficient to show the formation and operation of a conspiracy.”

Experts say, however, that the DOJ’s examination of the matter could result in differing viewpoints on the competitive effects of such practices. Similar lawsuits are pending in other jurisdictions, according to reports, all centered around whether the practice constitutes an illegal restraint of trade.

Full content: Hollywood Reporter

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