Univision, Televisa Settle Dispute

MEXICO CITY/NEW YORK: Grupo Televisa and Univision have settled their long-running dispute, amending their program licensing agreement that continues to run through 2017.

The suit, which went to trial in Los Angeles earlier this month, stems back to 2005, with Televisa alleging breach of contact and the non-payment of more than $100 million in royalty fees. The amended program licensing agreement, valid till 2017, includes a "simplified royalty calculation," the companies said, with increased payments to Televisa in exchange for "incremental rights" for Univision. Specific terms of the settlement were not disclosed,

"We are pleased that today’s settlement concludes this time-consuming litigation," a statement from both companies said. "This settlement serves the best business interests of both Televisa and Univision. It assures the public that Univision will continue to have access to consistently top-quality Hispanic programming. It enables Televisa to continue utilizing Univision’s extensive television networks as an important distribution channel for its content into the U.S. marketplace. For Univision, it assures that there will be no disruption in some of its most popular and valuable programming, as well as affording Univision an ongoing pipeline of future content developed by Televisa.”

Meanwhile, the U.S. Internet rights to Televisa programming will be adjudicated in a federal district court in Los Angeles in March 2009.

In a separate agreement, Televisa will license to Univision the home games for the three Televisa-owned teams—America, Necaxa and San Luis—for 2009.