Judge rejects request to toss Televisa claims against Univision

LOS ANGELES — A federal judge has rejected a request by Univision Communications Inc. to throw out several claims in a lawsuit filed by Mexican media conglomerate Grupo Televisa SA over program licensing.

As a result, Televisa can argue in court that Univision breached a 1992 agreement that gave Univision exclusive rights to Televisa’s slate of TV shows through 2017 in exchange for a cut of ad revenue from nearly all programs broadcast by Univision.

Televisa wants out of the deal so it can sell its programs to the highest bidders.

New York-based Univision filed a motion for partial summary judgment earlier this year, arguing that it has not materially breached its contract and that there were no grounds to rescind the licensing arrangement.

On Monday, U.S. District Judge Philip S. Gutierrez in Los Angeles sided with Televisa, concluding the Mexican company had presented enough evidence to present a case to jurors to decide if Univision materially breached its contract.

Losing Televisa programming would be a significant blow to Univision, since Televisa’s popular slate of TV soaps and other programs comprise more than 40 percent of Univision’s non-repeat shows.

In a statement Friday, Univision dismissed the significance of Gutierrez’s decision, saying it was "simply a preliminary ruling. ... We remain confident in our position and that Univision will prevail when we have the opportunity to present our case.”

Televisa attorney Marshall Grossman in Santa Monica said the ruling was a significant victory for his client, because it will allow a jury to decide whether Univision materially breached its deal with Televisa.

"As a result, Televisa is closer to its ultimate goal of terminating” the licensing agreement, Grossman said.

Trial is set for March 18 in Los Angeles.

Univision dominates the U.S. Hispanic media market through its three television networks — Univision, TeleFutura and Galavision — along with its cadre of television stations, record label and other media properties.

Televisa sued Univision in 2005, claiming among other things that Univision breached the terms of the ;licensing deal by failing to pay advertising royalties from programs aired by Univision stations, including the "Premio Lo Nuestro” awards show.

Televisa is also seeking some $118 million in allegedly unpaid advertising-related royalties.

Despite the long-standing business ties, the relationship between Televisa and Univision has turned sour and increasingly litigious in recent years.

Last year, Televisa attempted to acquire Univision but lost out and claimed its offer was never seriously considered.

A consortium of private investors that includes media mogul Haim Saban acquired Univision for $12.3 billion.

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