Two months after Warner Bros. filed a lawsuit against Paramount over streaming rights to the long-running animated series “South Park,” Paramount Global has responded with a lawsuit of its own.
In a countersuit filed in the New York Supreme Court, Paramount says Warner Bros. owes it more than $52 million in unpaid licensing fees.
In a statement, a spokesperson for HBO Max said, “We believe that Paramount and South Park Digital Studios embarked on a multi-year scheme of unfair trade practices and deception, flagrantly and repeatedly breaching our contract, which clearly gave HBO Max exclusive streaming rights to the existing library and new content from the popular animated comedy South Park.”
At issue is a 2019 licensing agreement between the companies, brokered for more than $500 million. When Paramount began streaming “South Park” on Paramount+, Warner Bros. asserted in its lawsuit, that constituted a reneging of parts of that licensing agreement.
Paramount naturally disputes that in a point-by-point refutation contained in its countersuit. The company accuses Warner Bros. of breach of contract, breach of implied covenant and good faith, deceptive practices, interference with contract, and unjust enrichment.
In the suit, Paramount asserts that South Park Studios, which produces the hit show, “has abided by the terms of the written Term Sheet,” while “WarnerMedia has not.” Paramount says Warner Bros. is “continuously exploiting and profiting from the 300-plus episodes of South Park that it still has available for streaming on HBO Max” and is “refusing to pay tens of millions of dollars in license fees owed to South Park Studios for the right to exploit that content.
Paramount claims that WB is justifying this alleged nonpayment by accusing South Park Studios of breach of contract.
Paramount is seeking a declaratory judgment against Warner Bros, compensatory and punitive damages to be determined at trial, legal fees, any interest and any other damages the court may deem appropriate.
Pamela Chelin contributed to this report.