It's Mr Video versus Universal Studios
By Dianne Hawker
Movie production company Universal City Studios and its South African subsidiary have launched court proceedings in an attempt to stop DVD store franchise Mr Video from importing movies directly from the United States.
Universal and the local distributor, United International Pictures SA, have accused Mr Video of copyright infringement, saying the DVD rental giants are undercutting their cinema circuit profits.
The battle was sparked after Universal Studios discovered Mr Video was offering copies of popular romantic comedy Knocked Up in early November, before the movie had left the theatre circuit.
In a supporting affidavit, United International Pictures managing director Peter Dignan said Mr Video was damaging the company's business.
In response, Mr Video managing director Peter Scott said the practice of buying DVDs overseas is "widespread" and that the issue applies to the entire movie rental industry.
Franchise
Mr Video has 230 franchise outlets. Dignan said Universal and its subsidiary companies were the exclusive licensees and distributors of the movie.
He said company executives in London had ordered an inquiry after discovering Mr Video was buying large quantities of the Knocked Up DVD in the US.
"It is the practice of film companies not to release films as DVDs for hire … for home viewing simultaneously with a theatrical release," he said.
"Because films are generally released far later in South Africa than in the US, more often than not … films are released on DVD in the US before they have been released in theatres in South Africa."
Universal also contends that Mr Video stores would often remove the "zoning" chip that prevented DVD machines from playing DVDs bought in other parts of the world.
Scott said the Mr Video franchise was doing nothing wrong.
"This matter, although not expressed as such in the founding papers, raises pertinently the issue of the legitimacy of parallel importation.
"The videos that are the subject of this application are not counterfeit or pirated copies of Knocked Up; they are copies which were made in the US by or with the permission of the copyright owner." Universal and its subsidiaries were trying to create a monopoly, Scott said. Mr Video agreed to stop importing DVDs until the conclusion of the court case.
Judge Daniel Dlodlo ordered that it be heard on April 30.
