Stephen Chow sues Huayi for missing bonus
By Kevin Ma
Tue, 14 April 2015, 15:05 PM (HKT)
Policy/Legal News
A company owned by Stephen CHOW 周星馳 has filed a lawsuit against Huayi Brothers Media Corporation 華誼兄弟傳媒股份有限公司 in the Beijing No.3 Intermediate People's Court, seeking RMB94.3 million (US$15.2 million) from the success of Journey to the West: Conquering the Demons 西游 降魔篇 (2013).
Filed by Chow's 崴盈投資有限公司 (a subsidiary of his Bingo Group Holdings Ltd 比高集團有限公司), the company and Huayi signed a co-production agreement in 2012 for the fantasy comedy. The contract included two supplemental agreements including additional terms.
Initially struck verbally between Chow and Huayi president Dennis WANG 王中軍, the second supplemental agreement stated that Chow's company would receive a bonus if Huayi earns more than RMB500 million (US$80.4 million) from the film. The fantasy comedy grossed RMB1.25 billion (US$201 million) at the China box office.
According to a statement made to investors, Bingo Group says that it should have received RMB180 million (US$29 million) under the terms of the second supplemental agreement, but it has only received RMB86 million (US$13.8 million) thus far.
Huayi Brothers told local media that the second supplemental agreement was never signed by both sides and therefore not legally admissible. In addition, the company says that its own share of the film's revenue after taxes, distributor's fee, marketing cost and minimum guarantee is nowhere near RMB500 million. Therefore, even if the agreement is legal, Huayi is not legally obligated to pay the bonus.
Reply With Quote
