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Pilat Media announced that it has reached a confidential agreement to end its legal dispute with Fox television stations (FTS).

Fox sued Pilat in June 2011 claiming damages of an unspecified amount in connection with alleged breaches of contract by Pilat Media.

In July 2011, Pilat said it had brought a removal action and counterclaim for breach of contract against FTS in the U.S. Federal Court in New York seeking an injunction and damages to be determined by that Court.

Pilat and Fox have now settled this dispute.  Here’s the press release:

Further to the update issued on 20 September 2011, Pilat Media Global plc (AIM:PGB), the leading supplier of business management software to the media industry, is pleased to announce the signing of a confidential settlement agreement with Fox Television Networks, Inc. (“FTS”).

In this confidential agreement FTS and Pilat confirm that they have resolved and settled their differences amicably and have agreed to withdraw all allegations and claims. Pursuant to the settlement, Pilat Media shall be entitled to payments from FTS and from the Company’s insurers in the total amount of US$850,000 (approximately £542,000). This amount will be credited against the impairment of receivables being £2,822,340 as at 30 June 2011.

The Board is pleased with this outcome which brings to an end the dispute with FTS.  As highlighted previously, Pilat Media enjoys excellent business relationships with its sixty-strong global client base and this is the only lawsuit with any client that has arisen in the ten year history of the Company.

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Tags: Fox, Pilat Media
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Pilat Media said that it was informed last month by Fox Television Stations Inc (“FTS”) that FTS wishes to discontinue use of Pilat Media’s IBMS system from 30 September 2011.

Pilat also said at that time that FTS had issued proceedings against Pilat Media claiming damages of an unspecified amount in connection with alleged breaches of contract by Pilat Media.

At the time, Pilat said that FTS’s notification came with no prior warning, and that its board of directors regards FTS’ claims as being wholly without merit.

Today, Pilat announced that in response to the legal actions taken last month by FTS, it has as brought a removal action and counterclaim for breach of contract against FTS in the U.S. Federal Court in New York seeking an injunction and damages to be determined by that Court.

Pilat Media said that for the year ended 31 December 2010 Fox TV Stations represented approximately 3%, or just over $1m, of Pilat Media’s total revenue of $35m (£21.9m).  Pilat also said that FTS-related balances for accrued income (revenues recognized but not yet paid) on Pilat Media’s balance sheet amount to approximately US$4.6 million.

Pilat, which has more than 60 customers worldwide, said it has never before experienced a purported termination of an IBMS implementation project.

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Related Content:

Press Release: Pilat Media Couter Claim against Fox Television Stations

Press Release: Pilat Media Informed by Fox Television Stations of Breach of Contract Suit

Pilat Media Posts Small Loss for First Quarter of 2011

Press Release: Pilat Media Announces Results for the 12 Months Ended December 31 2010

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Tags: Fox, Pilat Media
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