Turner Entertainment Co. v. Degeto Film GmbH

Turner Entertainment Co. (Turner) (plaintiff) sued the German television cooperative known as ARD (defendant) to enjoin ARD from broadcasting television programs owned by Turner but licensed to ARD in a licensing agreement. The agreement permitted ARD to broadcast the programs in German to a German-speaking audience in a designated region via all known and future technology. However, nine years after the agreement was signed, ARD announced its intent to broadcast the programs using new satellite technology in a geopolitically changed Germany, which would enable broadcasting over an area five times larger than contemplated by the agreement. Turner objected to the expanded broadcast area, and ARD filed for declaratory judgment in a German court. One week later, Turner filed a similar suit in US federal district court, and ARD moved for dismissal or stay in deference to the German proceedings. The district court denied ARD’s motion to dismiss or stay and granted an injunction to Turner. Shortly thereafter, the German court ruled that while ARD lacked the contractual right to broadcast in the expanded area, as a practical matter, ARD should be permitted to broadcast to its entire German audience at an increased fee to Turner, to be determined by further proceedings. ARD appealed the federal district court’s denial of its motion to dismiss or stay the US action.