Ajay Devgn sends legal notice to YRF - Page 31

Originally posted by: pria4ever

YRF statement as per ETONIGHT ?@ETONIGHT:

YRF statement on Son of Sardar vs Jab Tak Hai Jaan: We were indeed quite surprised to receive an intimation (cont) http://tl.gd/jrpulc

tl.gd/jrpulc :

YRF statement on Son of Sardar vs Jab Tak Hai Jaan:

We were indeed quite surprised to receive an intimation from Ajay Devgn Films' lawyers today saying that they had filed a complaint with the Competition Commission of India against YRF, alleging malpractice committed by us in connection with the release of JAB TAK HAI JAAN and thereby affecting the release of Son of Sardar. For a company like ours, which has maintained the highest standards of work ethics and fair play, this has really come as a shock.

We would like to clarify at the outset that we still haven't received any notice from the Commission and will suitably represent our stance if and when called upon to do so. Worldwide, as well as in India, distributers often sign deals for their complete annual slate of films to simplify the process. We trust the Competition Commission will also see it as universally acceptable fair business practise.

As we have mentioned in the past, all the exhibitors, when approached by us earlier this year for booking their theatres, were happy to play out Yashji's movie considering their long standing and emotional relationship and goodwill with YRF of over 40 years. A Yash Chopra/Shah Rukh Khan movie, coming after a gap of 8 long years, did not need any coercion for contractual screening. Additionally, some exhibitors, who played EK THA TIGER, have chosen not to screen JAB TAK HAI JAAN.

Interestingly, of the 10500 plus single screens available on an all-India basis, we have booked less than 1500 single screens (an industry norm for an A-lister movie), a fact that has been common knowledge for some time now. If this was an issue, why wasn't it raised earlier? Why wait till now when both films are nearing release?

We had announced JAB TAK HAI JAAN would be a Diwali 2012 release as far back as 27th June 2011 and thereafter every press release of ours reiterated this. Given that most big ticket films avoid simultaneous releases, it was odd that Son of Sardar announced their release for the same day almost a year later on 29th May 2012. They were also able to lock their final distribution partner as late as 4th Oct 2012. It would seem odd that they would expect us to wait for our release plans to be put in place till they had finalised theirs!

It is also unfair to say that we are in any way in a dominant position. While we are releasing just three films this year, the two production houses in question, VIACOM 18 & EROS, who are distributing Son of Sardar, have a combined release strength of almost 27 films in a year.

Everyone agrees that the festive time of Diwali has space for two simultaneous releases. Give the audience a choice to choose the one they want to watch. Few of the exhibitors have already chosen, on the basis of a business decision, the one they want to exhibit.

After YRF's statement, here's the statement by lawyers of Ajay Dvgn Films which has been issued today - The case of ADF is that a producers/distributor/exhibitor cannot be allowed to enter into a tie-in arrangement which adversely affects competition. YRF has entered into a tie-in arrangement with the exhibitors in a manner that it has made it compulsory for the exhibitors to exhibit the untitled movie of YRF on Diwali day and two weeks thereafter with all 4 shows. A tie in arrangement in the present circumstances of YRF of compulsory showing an unnamed movie on a date fixed in advance with the exhibitor while entering into an arrangement to show the film "Ek Tha Tiger" itself violates the provisions of the competition Act, 2002 more particularly Section 3. It is well known fact that YRF is the most dominant player in the film business for the past four-five decades.

YRF is vertically integrated i.e. it has a studio, production house, in house director, all the equipments required for the production and it has distribution arms all over the world which creates a dominant presence/impression before an exhibitor.

Under the threat of not delivering "Ek Tha Tiger" which was the only film to be released on Eid/Independence day (an unusual day being a Wednesday for a film release), YRF forced the exhibitors to tie in the release of the untitled movie (which is now titled as "Jab tak hai jaan") on the Diwali day i.e. 13.11.2012 which is also an unusual day for release i.e. Tuesday. ADF is entitled to release its movie on the Diwali day which right is protected under Article 19(1)(g), Indian Contract Act and Competition Act, 2002 and provide effective competition to YRF's movie.

But for YRFs tie-in arrangement with the exhibitors which is apparent from the various agreements executed by YRF, ADF would have achieved single screen exhibitors in the range of more than 1200. However, because of the tie-in arrangement, ADF has achieved only about 600 nos. of single screens which clearly shows the cause against YRF.

To substantiate the above through some examples, a catchment like Dadar in Mumbai has 7 single screen cinemas out of which 'Son of Sardaar' has only 1, and 'Jab tak hai Jaan' has 6. In Hyderabad city, out of 17 single screen (Hindi playing) cinemas, 'Son of Sardaar' has only 2, and 'Jab Tak Hai Jaan' has 15. The trend is similar almost all India which can be scrutinized by anyone.

For ADF's last movie i.e. "Bol Bachchan" ADF had achieved about 1350 number of single screens which film was released on 6th July, 2012. ADF could have also restricted the release of YRF's movie on Diwali day by entering into tie-in arrangements then but ADF has always been fair and in any case does not carry dominance which YRF has in the market to dictate anti-competitive terms.

YRF is trying to hide behind its dominant position in the film market. It is wrongly touting this cause of action to be based upon an alleged enmity between Mr. Ajay Devgn and Mr. Shah Rukh Khan, which does not exist. The case of ADF is legally maintainable and ADF shall fight till the end on this legal issue.

http://www.pinkvilla.com/entertainment/news/statement-ajay-devgn-films-response-yrf-statement

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@akshayerathi ok bro last Q related to JTHJ vs SOS. Had u signed any agreement with ETT which these days is in news ?

@BeingAlBalushi its rubbish! ALL exhibitors were given the CHOICE to sign both. Many even decided not to! NO FORCE AT ALL! #Bullshit