Image, Relativity Clash Over Distribution Deal

Image Entertainment went to court in a contract dispute with Relativity Media over providing films for Image to distribute for the DVD market. Relativity has yet to provide a single film to Chatsworth-based Image even though the agreement called for three films in 2007 and as many as 20 a year starting in 2008, the Los Angeles Times reported. Relativity was to receive shares of Image stock for every film it provided. Although there are no indications that any shares or money ultimately changed hands, Image contends that it has been deprived of millions of dollars of potential revenue because of a lack of films for distribution, the Times said. Attorney Martin D. Singer, who represents West Hollywood-based Relativity, was quoted in the Times calling the case “ridiculous and without merit,” saying the companies resolved the issue in 2007 in a binding settlement. “Even prior to the settlement, our initial agreement with Image did not obligate us to give them the films they are claiming,” Singer was quoted in the Times.