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.”
According to Law360.com, Allison “Sam” Hall, a former co-head writer of ABC’s “One Life to Live,” is suing the network over what he claims are royalties owed since the soap transitioned to the web via Hulu and iTunes, and broadcast during summer 2013 on OWN (Oprah Winfrey Network), courtesy of Prospect Park – the company that licensed the rights to both programs from Disney/ABC in 2011. Hall reportedly filed his complaint against American Broadcasting Companies, Inc. (ABC) on Tuesday, January 7, in New York. Hall was named co-head writer of the soap in 1984, and remained with the series until 1985.
“Each week during which such exhibitions by each authorized entity occurred Hall was entitled to be paid the weekly royalties,” reads the complaint referring to royalties owed from characters Hall may have created while working on the soap. “Despite due demand, Hall has not been paid any of the weekly royalties to which he is entitled for the exhibition of the series by Prospect Park Productions, iTunes, Hulu and OWN, which total in excess of $50,000, an amount which is in excess of the jurisdictional limits of the lower courts.”