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Warner Brothers Sues CBS over Two & a Half Men Money


morty
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LOS ANGELES (Dec. 24) - Talk about scrooge! Warner Bros. Television surprisingly filed a $49 million breach of contract lawsuit on Tuesday against television network CBS, alleging that they haven't paid up on the agreed-upon premium fees for airing the Charlie Sheen hit sitcom 'Two and a Half Men."

The suit, filed in Los Angeles Superior Court, alleges that as part of CBS' renegotiated license agreement to air "Men" for a fifth and sixth season, it agreed to pay Warner Bros. a premium above the initial license fee schedule and reimburse the studio for costs associated with the production of TV's top-rated comedy. This "deficit recoupment," as the term is commonly known, required CBS to pony up if the show reached specific ratings milestones in its fourth season.

"CBS has reaped the benefits of the tremendous success of 'Two and a Half Men" but wants to deny Warner Bros. the right to its agreed-upon share," the complaint argues.

A CBS spokesman said he was unaware of the complaint and declined further comment Tuesday night. It is rare for a major TV studio to sue a network. Similar disputes are typically handled through private arbitration. Also unusual in this case is that the two side are close business partners and co-owners of the CW network.

According to the complaint, the premium fees and recoupment requirement were renegotiated shortly after "Men" began airing on CBS in 2003 and were based on the show remaining on the air for six seasons and maintaining sufficiently high ratings.

"Men," now in its sixth season, is television's top comedy and the cornerstone of CBS' high-flying Monday night lineup. It has enjoying a ratings resurgence in the fall, hitting several ratings highs, including a season high in total viewers and the adults 18-49 demographic last week. It finished last week as the highest-rated entertainment program among adults 18-49.

"Men" also is a strong performer in syndication, where it airs on the Tribune stations. However, in Tribune's recent bankruptcy filing, Warner Bros. was listed as the company's top creditor with $23.7 million owed to it. (Tribune has deals for Warners' "Men" and "Friends.")

2008 AOL LLC. 2008-12-24 06:59:54

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