Hollywood movie studio Universal has lodged a complaint against Kirch Group. Universal accuses the Munich-based media company of breach of contract and is claiming compensation for damages.

With its lawsuit at the Superior Court in Los Angeles the production company is taking a counter measure to Kirch’s own court action against Universal. In December, Kirch sued Universal in the same court, arguing that the company provided fewer series and movies for its pay-TV bouquet Premiere World than agreed in a contract signed in 1996. According to the output deal running until July 31 2008, Kirch Group gets all series and films Universal produces for screening on its pay-TV service. The Hollywood studio rejected Kirch’s complaints, saying that it has delivered sufficient content. Universal argues that Kirch is in fact the partner not fulfilling contractual obligations. The studio claims that Kirch Group, by misusing its monopoly position in the German pay-TV market, has for a long time delayed the launch of Universal’s channels 13th Street and Studio Universal on Premiere World which compete with Kirch’s own channels. Furthermore, Universal complains that 13th Street is not offered to all Premiere World subscribers, despite a clause in the contract specifying this, and that the contract which rules that Studio Universal has to be offered to 75 per cent of the subscriber base is also not fulfilled. In addition, Universal complains that Premiere World doesn’t adequately market both channels.