Image Entertainment and Universal Home Video have a fallout

A storm is brewing between Image Entertainment and Universal Home Video it seems. As most of you know, Image has been releasing a number of licensed Universal titles on DVD in the past. Now it seems however, as if Universal is not entirely happy with Image’s efforts on those titles.

Image Entertainment today announced it denies all of the allegations contained in a lawsuit filed yesterday against the company by Universal Studios Home Video. In the lawsuit, Universal accuses Image of breaching a license agreement giving Image exclusive rights to distribute 50 of Universal’s motion picture titles on DVD format for a three-year period. Universal accused the company of improperly reducing suggested retail prices on those Universal titles.

Martin W. Greenwald, president and chief executive officer of Image Entertainment, said “Image has marketed the Universal titles in a successful and responsible manner. Image has adjusted prices in response to changes in the DVD marketplace and has presented a sales program to its customers and to consumers, which has resulted in an overwhelmingly commercial success for both Image and Universal. Image has complied with both the letter and spirit of its license agreement with Universal and intends to vigorously defend its actions in response to Universal’s unfounded allegations.”

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