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28/04/2011

STV And ITV End Legal Disputes

Scottish broadcaster STV and ITV have ended their long-running legal disputes in an £18 million settlement.
The disputes began in late 2009 when ITV sued STV in a £38 million claim over alleged unpaid network programme budget contributions. STV then filed a £35 million action over alleged unpaid advertising income and a further £12 million claim over unfair exploitation of video-on-demand rights.
The settlement will involve STV paying £7.2 million in cash to ITV this year, as well as a further £10.8 million in either programme rights or cashier programme rights depending on further discussions with the broadcaster.
In return, STV will receive £2.4 million credit for programme opt outs from the ITV schedule this year, giving it a cash impact on the Scottish broadcaster of £4.8 million.
STV has announced that it expects to book an exceptional charge of around £9 million in its first half-year results as a result of the deal.
Commenting on the settlement, Rob Woodward, STV Chief Executive: "I am pleased that we have reached a wide ranging settlement with ITV and that our two organisations can work collaboratively in future for the benefit of the Channel 3 Network."
ITV's Chief Executive Adam Crozier said: "We are very pleased that this long running legal dispute with STV has been settled by way of an £18 million payment to ITV. We look forward to working closely with STV in the future."
(KMcA)
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