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USA Networks unit sues World Wrestling, Viacom, CBS
WILMINGTON, Del., April 12 (Reuters) - The USA Cable division of USA Networks Inc. (NasdaqNM:USAI - news) has sued World Wrestling Federation Entertainment Inc. (NasdaqNM:WWFE - news), Viacom Inc. (NYSE:VIA - news) and CBS Corp. (NYSE:CBS - news) to enforce a first refusal right intended to allow USA to continue broadcasting WWF wrestling matches.
In papers filed Wednesday in the Delaware Court of Chancery, USA alleged that the Viacom/CBS offer, which included exploitation rights for publishing, motion pictures, and theme park events, ``represents a transparent and unlawful attempt by WWFE, Viacom and CBS to frustrate USA's contractual rights.''
USA said ``WWFE has no right to force USA to match the terms of the Viacom/CBS 'offer' addressing such different subject matters in order to exercise its rights of first refusal with respect to'' the series USA now distributes.
The series, which consists of ``Raw is War,'' cable's most popular programme, WWF Livewire,`` WWF Superstars,'' and ``Sunday Night Heat,'' represents one of USA's principal assets, court papers say.
USA, which has broadcast WWF programming for nearly 20 years, claims that its right to broadcast the wrestling matches is now extended for five years because of USA's agreement Wednesday to match what it considers the applicable components of the Viacom/CBS offer.
USA has asked the court to act on an expedited basis to block the defendants from acting to violate USA's agreement with WWFE, to void any agreement among WWFE, CBS and Viacom, and to compel WWFE to act in accordance with its agreement with USA.
A CBS spokesman said the company had decided to decline to comment. No one at Viacom or WWFE could be reached for comment.
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