SOURCE: Seven Arts Pictures plc

Seven Arts Pictures plc

March 02, 2011 11:50 ET

Seven Arts Pictures plc Announced Judgment in Copyright Infringement Action Against CanWest Entertainment and Fireworks Entertainment

HOLLYWOOD, CA--(Marketwire - March 2, 2011) - Seven Arts Pictures plc ("Seven Arts") (NASDAQ: SAPX) announced today that the Ontario Superior Court of Justice has entered judgment on February 11, 2011, in favor of two affiliates of Seven Arts in an action for copyright infringement against CanWest Entertainment and Fireworks Entertainment for their infringing use of copyrights and distribution rights to five motion pictures produced or co-produced by Seven Arts' predecessors: Rules of Engagement (starring Tommy Lee Jones, Samuel L. Jackson), An American Rhapsody (Scarlett Johansson, Nastassja Kinski), The Believer (Ryan Gosling), Who is Cletis Tout (Tim Allen, Richard Dreyfuss) and Onegin (Ralph Fiennes, Liv Tyler).

CanWest Entertainment and Fireworks Entertainment purported to transfer their rights to these motion pictures to Contentfilm plc, an English public liability company traded on the London Stock Exchange (LSE: CFL) ("Content"), and Content has purported to distribute these motion pictures and collect monies since 2004. Seven Arts believes that Content is a contributory infringer and liable to pay to Seven Arts or its affiliates statutory and compensatory damages for copyright infringement, which, in management's opinion, could total millions of dollars. Seven Arts intends to proceed with actions in England and the United States against Content to recover distribution rights to these motion pictures, as well as compensatory and statutory damages for copyright infringement.

CanWest Entertainment and Fireworks Entertainment are currently in bankruptcy and reorganization proceedings in Canada. Both CanWest Entertainment and Fireworks Entertainment appeared and defended in the action brought by Seven Arts affiliates in Canada and sought to stay the action by reason of the pendency of the bankruptcy proceedings. Upon the failure of their efforts, CanWest did not defend Seven Arts affiliates' motion for summary judgment, which was granted. Seven Arts does not believe it will obtain any financial relief from CanWest Entertainment or Fireworks Entertainment due to the existing bankruptcy proceedings. The bankruptcy court in Canada required Seven Arts affiliates to give notice to Content of the pendency of the motion for summary judgment, which was given.

About Seven Arts:
Seven Arts Pictures PLC was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.

Cautionary Information Regarding Forward-Looking Statements:
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated.

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