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TELEVISION PROGRAMS INTL., INC. v. U.S. COMMUNS. O

January 18, 1972

TELEVISION PROGRAMS INTERNATIONAL, INC.
v.
U.S. COMMUNICATIONS OF PHILADELPHIA and U.S. Communication Corporation and WPHL-TV, Inc.


Troutman, District Judge.


The opinion of the court was delivered by: TROUTMAN

TROUTMAN, District Judge.

 The plaintiff entered into an exclusive licensing agreement with defendants whereby plaintiff would supply "certain animated cartoon characters and films" for which defendant would pay certain license fees. The plaintiff has purported to terminate this license agreement with the defendant or defendants because of alleged failure to pay license fees required under the agreement. The plaintiff here seeks to enjoin the defendants from exhibiting, using, advertising or otherwise doing any act inconsistent with the plaintiff's property right in the licensed material, seeks a return thereof from plaintiff and seeks "monetary damages". It does not seek the license fees allegedly unpaid. Defendant, WPHL-TV, Inc., has filed a motion for a stay of proceedings pending arbitration, pursuant to the Federal Arbitration Act, 9 U.S.C. § 1 et seq.

 Paragraph 19 of the License Agreement provides as follows:

 
"19. ARBITRATION: Any and all disputes which shall arise from this agreement, its interpretation or performance, shall be submitted to arbitration in New York, N.Y. under the then current rules and regulations of the American Arbitration Association, and the decision of the arbitrators shall be binding and conclusive upon both parties, except that at the sole discretion of the Distributor, Distributor may take such action as it may desire to enforce payment of license fees."
 
"The clause, by its express terms, is limited to valuation of the franchise."

 At page 868, it again stated:

 
"Under these circumstances, it would be unreasonable to surmise that it was intended to function beyond its rather limited scope ". (Emphasis ours)

 At page 869:

 
"The provision speaks for itself. It implies that the only rights relinquished are those which would otherwise exist for termination without cause."

 And again at page 869:

 
"[It] is clear that the only right relinquished under paragraph nineteen of the agreement was the right to litigate the issue of valuation of the franchise." (Emphasis ours)

 On the contrary, paragraph nineteen of the License Agreement here in question provides for the arbitration of " any and all disputes which shall arise from this agreement, its ...


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