Thursday, 28 May 2009

MTV sues Kajeet – USA

Television network MTV has filed a lawsuit for USD 11,600,000 at the U.S. District Court, Southern District, New York against Kajeet, a child orientated MVNO.

The MTV lawsuit is due to Kajeet, which has used the Sprint network since its launch, supposedly failing to uphold its end of a licensing agreement it signed for the use of Nickelodeon content. The agreement between the two companies reportedly compelled Kajeet to purchase USD 11,700,000 of advertising time on MTV. MTV alleges that Kajeet has not purchased sufficient advertising airtime and has also halted its payment of due licence fees, whilst still apparently using Nickelodeon content.

Commenting on the lawsuit an MTV Networks spokesperson said: “Kajeet has breached and defaulted under the agreement by refusing to pay past due and outstanding invoices, indicating it ‘wants out’ of its agreement with MTVN while still using MTVN content past the expiration of its license.”