STV accuses ITV of being 'playground bully' and sues for £12 million

Published on Tuesday 17 November 2009 21:24

STV has launched a legal action against the ITV network in a dispute over new media rights.

The Scottish broadcaster claims it could be owed up to 12 million after ITV signed deals with BT Vision and Virgin Media without obtaining the consent of licence-holders STV Central and STV North.

Under an existing agreement, STV pays a share of the cost of ITV programmes such as The X Factor and Coronation Street, for which it receives the broadcast rights to those programmes in Scotland.

However, the ITV network has now signed deals with BT Vision and Virgin Media which allow these programmes to be viewed as a catch-up in STV's territory, but branded as ITV and with no share of the lucrative contract or the associated advertising going back to the Scottish broadcaster.

It is the latest move in an ongoing battle between the broadcasters which has already seen ITV launch its own legal proceedings. STV has angered the national network by opting out of more peak-time shows from the main UK-wide schedule, allowing it to tailor output to Scottish audiences.

It is facing damages claims of up to 38m, against which it filed last Friday a counter-claim of 35m.

It is understood that STV is also concerned about the ITV network striking lucrative deals with Google or YouTube which would see STV-funded programmes such as Taggart financially exploited in a new media.

Last night, an STV source said: "ITV is acting like a playground bully and are treating Scotland like north Britain, and the company are not going to take it any more. The board is entirely behind the company's actions and they are confident of victory."

STV has instructed Herbert Smith, a top London legal firm.

Yesterday, a statement from STV said: "Despite the new media rights being acquired and held for the benefit of all Channel 3 licensees, ITV Network and ITV Broadcasting have entered into commercial agreements without obtaining STV's consent.

"These commercial agreements use and exploit new-media rights in STV Central and STV North's licence areas."

The broadcaster is seeking an injunction to prevent the companies from entering into any further new-media rights agreements without STV's consent.

STV said it also expected to file further claims regarding "significant prejudicial behaviour" on the part of ITV Network and ITV plc.

STV Group chief executive Rob Woodward said:

"ITV's actions are detrimental to STV's brand and business, and they are inhibiting our ability to grow as a digital broadcaster."