CBS allowed to distribute Sony’s ‘Wheel of Fortune,’ ‘Jeopardy!’ during lawsuit appeal
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CBS has notched another small victory in its legal battle with Sony Pictures Television, winning an appellate court ruling that allows the network to continue to distribute “Wheel of Fortune” and “Jeopardy!” as its court case continues.
Sony owns the shows and produces them on its Culver City lot.
Last month, a Los Angeles judge ruled that Sony was no longer obligated to provide episodes to CBS, which has served for decades as the conduit, delivering batches of episodes to television stations around the country.
After that ruling, the Paramount Global-owned network appealed. A three-judge appellate panel paused the order and asked both sides to submit their arguments.
On Wednesday, the judges wrote that they had reviewed filings from both sides. In a one-page order, the panel granted CBS’ request to keep the stay in place, allowing the network to continue its distribution duties during the appeal.
CBS maintains Sony lacks the legal right to unilaterally severe ties.
For decades Sony and CBS have partnered to produce and distribute two of TV’s longest-running and most popular programs, ‘Wheel of Fortune’ and ‘Jeopardy!’ Now the game shows are in the midst of a legal battle, with Sony accusing CBS of self-dealing.
Sony terminated its distribution deal with CBS in August and later filed a breach-of-contract lawsuit that claimed CBS entered into unauthorized licensing deals for the shows and then paid itself a commission. Sony also maintained that rounds of budget cuts within CBS had hobbled the network’s efforts to support the two shows.
In February, Sony attempted to cut CBS out of the picture, escalating the dispute.
CBS has said Sony’s claims “are rooted in the fact they simply don’t like the deal the parties agreed to decades ago.”
CBS takes in up to 40% of the fees that TV stations pay to carry the shows. The company took over the distribution of the program when it acquired syndication company King World Productions in 1999.
King World struck deals with the original producer, Merv Griffin Enterprises, in the early 1980s to distribute “Jeopardy!” and “Wheel.” Sony later acquired Griffin’s company, but those early agreements remain in effect.
Sony claimed CBS licensed the shows to TV stations at below-market rates and failed to maximize advertising revenues.
As viewing of traditional TV has declined due to competition for streaming in recent years, the two daily game shows have continued to thrive and are among the most-watched programs in television.
A Sony representative declined to comment.
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