Prospect Park Networks may have just filed for Chapter 11 bankruptcy this week, but that isn’t stopping ABC from seeking unpaid licensing fees that they claim Prospect Park Networks has yet to pay them.
In a cross-complaint suit made available by Deadline.com, ABC is now suing PPN for “all unpaid series fees owned up to and through the date of the trial of this action as a result of Prospect Park’s failure to pay in breach of the License Agreement.” According to them, PPN had agreed to an approximate $145 million multi-season licensing agreement, yet only paid for a few months on the first seasons of “All My Children” and “One Life to Live.”
The alphabet network goes on to claim that PPN should have paid them $4.5 million for “AMC’s” first season and $4 million for “OLTL’s” first season, but only paid fees for April to June and then an additional two months for just “AMC.” As a result of this licensing agreement breach, ABC is now seeking compensatory damages, pre and post-judgment interest, and legal fees from PPN.
“We value the history and the legacy of both ‘All My Children’ and ‘One Life to Live’. They are television institutions,” said an ABC spokesperson. “Prospect Park has the exclusive rights to these programs. It was their decision to discontinue producing new episodes online thereby disappointing fans. Prospect Park has not honored their agreement with ABC.”
Although the total number isn’t exactly calculated in the cross-complaint, ABC is claiming damages of no less than $5 million, which does not include the other compensations they’re seeking. It’s worth noting that although PPN filed for bankruptcy on Monday, March 10, this suit by ABC was filed last Friday, March 7. In Prospect Park’s bankruptcy filing, however, they noted only owing ABC $1.7 million. Clearly there’s a big discrepancy there.
Prospect Park Networks has yet to respond to this cross-complaint suit.
(Disclosure: Prior to contributing to Soap Opera Network, Jared Kaplan was employed by ABC from September 2010 to January 2012 and was employed by Prospect Park Networks from February 2013 to July 2013.)