صحافة دولية » Millionaire creators to receive $269m damages from Disney
Guardian
Andrew Clark in New York
The British creators of Who Wants to Be a Millionaire? won $269m (£178m) in damages from the Disney entertainment empire in a US court after a six-year battle over unpaid royalties.
After three days of deliberation, a jury decided that Disney s ABC network had cheated Celador International out of its entitlement to a 50% share in profits from the American version of the show, which airs five days a week on coast-to-coast television and has proven hugely lucrative.
Celador s founder, the multi-millionaire producer Paul Smith, hailed the verdict, which came in a courtroom in Riverside, east of Los Angeles, as a victory for a small company over a multinational.
"This is money to which we are entitled and Disney endeavoured to avoid paying it. I am delighted we are going to get it," Smith told the Guardian. "It has been debilitating and it has been very, very difficult at times. But I am delighted that in a David against Goliath story, David has won."
Originally filed in 2004, the case took years to come to court, hitting stumbling blocks as a judge died and a law firm initially representing Celador become embroiled in a fraud scandal.
During three weeks of evidence, witnesses called to the stand included Disney s chief executive, Robert Iger, and the former NBC entertainment boss Ben Silverman. Disney had insisted that it bore all the risk of broadcasting the show and that Celador received a fair payout as an executive producer.
In a statement the company said it was likely to appeal: "We believe this verdict is fundamentally wrong and will aggressively seek to have it reversed."
Originally aired in Britain in 1998, the "millionaire" idea was developed by Smith and three other men – radio station director David Briggs and Celador comedy writers Steve Knight and Mike Whitehill. Under a simple format, contestants answer questions of increasing difficulty to win a maximum prize of £1m. It took the creators two years to persuade ITV to try the show but once on screen with presenter Chris Tarrant, it became a quick success with viewers.
Now shown in more than 100 countries, it has spawned celebrity versions and online spin-offs.
It has even served as the inspiration for an Oscar-winning movie, Slumdog Millionaire. Catchphrases such as "final answer" and "phone a friend" have become ubiquitous.
Celador sold its television production arm in 2006, netting millions for Smith and his fellow executives, and rights to the show have since been bought by Sony. But as the lawsuit was brought before that deal, Disney s payout, if upheld, will be shared by the four creators and other Celador investors including the comedian Jasper Carrott, who had a stake of about 10% in the business.
Smith said he believed Disney had underestimated his team s tenacity: "I bear them no grudge although I am sure they bear us one. Disney are a fine organisation. I just really wish they did not think we were going to roll over on our backs and say ''''''''okay, we are not going to challenge you''''''''."
During evidence, Celador accused Disney of a series of "sweetheart deals" between subsidiary companies to blur the profitability of the gameshow. Celador s lawyers argued that the show had produced $515m in licensing revenue during its initial three-year run between 1999 and 2002, plus $70m in revenue from merchandising. Citing independent research, they said the show had drawn in $1.8bn of advertising. Disney argued that there was nothing unusual about the way it accounted for the show, initially hosted by veteran US presenter Regis Philbin and later by daytime star Meredith Vieira. The US company said it honoured its agreement with Celador which included a lump sum when it bought the format. Media experts had suggested that a Celador victory could amount to a challenge to "Hollywood accounting" whereby powerful studios engage in complex financial juggling to blur the true profitability of films, music and television shows.
Andrew Clark in New York
The British creators of Who Wants to Be a Millionaire? won $269m (£178m) in damages from the Disney entertainment empire in a US court after a six-year battle over unpaid royalties.
After three days of deliberation, a jury decided that Disney s ABC network had cheated Celador International out of its entitlement to a 50% share in profits from the American version of the show, which airs five days a week on coast-to-coast television and has proven hugely lucrative.
Celador s founder, the multi-millionaire producer Paul Smith, hailed the verdict, which came in a courtroom in Riverside, east of Los Angeles, as a victory for a small company over a multinational.
"This is money to which we are entitled and Disney endeavoured to avoid paying it. I am delighted we are going to get it," Smith told the Guardian. "It has been debilitating and it has been very, very difficult at times. But I am delighted that in a David against Goliath story, David has won."
Originally filed in 2004, the case took years to come to court, hitting stumbling blocks as a judge died and a law firm initially representing Celador become embroiled in a fraud scandal.
During three weeks of evidence, witnesses called to the stand included Disney s chief executive, Robert Iger, and the former NBC entertainment boss Ben Silverman. Disney had insisted that it bore all the risk of broadcasting the show and that Celador received a fair payout as an executive producer.
In a statement the company said it was likely to appeal: "We believe this verdict is fundamentally wrong and will aggressively seek to have it reversed."
Originally aired in Britain in 1998, the "millionaire" idea was developed by Smith and three other men – radio station director David Briggs and Celador comedy writers Steve Knight and Mike Whitehill. Under a simple format, contestants answer questions of increasing difficulty to win a maximum prize of £1m. It took the creators two years to persuade ITV to try the show but once on screen with presenter Chris Tarrant, it became a quick success with viewers.
Now shown in more than 100 countries, it has spawned celebrity versions and online spin-offs.
It has even served as the inspiration for an Oscar-winning movie, Slumdog Millionaire. Catchphrases such as "final answer" and "phone a friend" have become ubiquitous.
Celador sold its television production arm in 2006, netting millions for Smith and his fellow executives, and rights to the show have since been bought by Sony. But as the lawsuit was brought before that deal, Disney s payout, if upheld, will be shared by the four creators and other Celador investors including the comedian Jasper Carrott, who had a stake of about 10% in the business.
Smith said he believed Disney had underestimated his team s tenacity: "I bear them no grudge although I am sure they bear us one. Disney are a fine organisation. I just really wish they did not think we were going to roll over on our backs and say ''''''''okay, we are not going to challenge you''''''''."
During evidence, Celador accused Disney of a series of "sweetheart deals" between subsidiary companies to blur the profitability of the gameshow. Celador s lawyers argued that the show had produced $515m in licensing revenue during its initial three-year run between 1999 and 2002, plus $70m in revenue from merchandising. Citing independent research, they said the show had drawn in $1.8bn of advertising. Disney argued that there was nothing unusual about the way it accounted for the show, initially hosted by veteran US presenter Regis Philbin and later by daytime star Meredith Vieira. The US company said it honoured its agreement with Celador which included a lump sum when it bought the format. Media experts had suggested that a Celador victory could amount to a challenge to "Hollywood accounting" whereby powerful studios engage in complex financial juggling to blur the true profitability of films, music and television shows.
