iPic Entertainment wins court case against Regal over anticompetitive film deals

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A district judge has ruled in favor of Houston-based theater chain, iPic Entertainment, in its case against the Regal Entertainment Group. The former filed a temporary injunction and restraining order against the latter, which is considered as the biggest theater chain in the U.S., due to its practice of securing exclusive film licenses.

According to Deadline, iPic Entertainment mentioned in its lawsuit that Regal monopolizes the public release of films including blockbuster hits. The local chain noted that due to Regal's exclusive partnerships with various production firms such as Sony, Universal and Fox, the company was able to deny the exhibition of certain films in other theaters.

Some of the films that iPic Entertainment missed out on due to the deals include, "The Martian," "The Revenant," "Ride Along 2" and "The Hateful 8." But, the local theater chain was able to show films from Disney since the studio refused to enter into an exclusive deal with Regal.

Paul Yetter, the legal representative of iPic Entertainment, told the court that Regal uses coercive techniques to persuade studios into following its demands. For instance, if the studio refuses to enter into an exclusive deal, the theater chain will retaliate by not showing its films, Biz Journal reported. Moreover, being an industry giant, Regal's move can greatly hurt the studio's potential box office earnings.

Earlier this week, a district court judge in Harris County, Texas, ordered regal to stop carrying out its practice of demanding exclusive film-viewing rights. The court even called the move anticompetitive as it prevents other companies from providing their services in the industry and also affects the movie-going preferences of the public. Regal, however, refused to comment on the court order.

"iPic is extremely pleased that the court ordered Regal to immediately stop its anticompetitive campaign," iPic Entertainment CEO Hamid Hashemi said in a press statement. "This is good for our guests, for the industry and for iPic."

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