Report: MTV Networks Files Suit Over Cell-Phone Deal

NEW YORK: MTV Networks has filed a $11.6-million lawsuit against Kajeet, a cell-phone provider for kids, according to Bloomberg News.

The Maryland-based Kajeet offers up pre-paid phones—with service provided by Sprint—that parents can purchase for their children. According to Bloomberg, Kajeet entered into a licensing deal with MTV Networks for Nickelodeon content in 2006, and agreed to buy $11.7 million worth of ad time on MTV Networks-owned channels. The suit brought by MTV Networks alleges that Kajeet has not followed through on the ad-time purchases and has stopped making license-fee payments, while continuing to use Nick content.

“Kajeet has breached and defaulted under the agreement by refusing to pay past due and outstanding invoices, indicating it ‘wants out’ of its agreement with MTVN while still using MTVN content past the expiration of its license,” MTV Networks’ complaint says, according to Bloomberg News.

The case was filed in the U.S. District Court, Southern District of New York.