Miss. Broadcaster Sues Rival After Services Agreement Wasn't Renewed
Coastal TV is being forced to broadcast with a low-power transmitter that lacks sufficient power to cover its broadcast area due to a contract dispute with Mississippi TV, alleged a May 1 fraud complaint (docket 1:24-cv-00100), removed Tuesday from the Circuit Court of Lee County, Mississippi, to U.S. District Court for Northern Mississippi in Aberdeen.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Coastal operates WLOV-TV West Point, Mississippi; Mississippi TV operates WTVA Tupelo, the complaint said. Owners of the two stations signed a joint sales and services agreement (JSSA) in 2012 whereby WLOV-TV benefited from WTVA’s experience operating a commercial broadcast station, ad sales and equipment use; WLOV received a percentage of net ad sales and retransmission fees, it said.
Ownership of both stations changed, and in July 2017, Coastal and Mississippi TV, as the new owners, agreed to amend and restate the JSSA: Coastal gave Mississippi TV exclusive rights for national, regional and local spot advertising; sponsorships, paid programming, infomercials and long-form advertising broadcast on WLOV; Mississippi TV provided Coastal broadcast or simulcast local news, weather and sports, it said.
Under the pact, Mississippi TV was to provide the “space, equipment, and technical and sales/advertising services necessary to operate and promote WLOV-TV, including tower space and transmitter building area for the placement of WLOV-TV’s transmitter; Mississippi TV was entitled to revenue attributable to ads sold on WLOV-TV, said the complaint. Mississippi was required to account for all ad revenue, plus costs and expenses in monthly reports. The defendant also was required, along with monthly accounting, to pay a portion of its net revenue to Coastal based on a percentage of ad sales and retransmission fees, it said.
In May 2022, Coastal notified Mississippi TV it wanted to renew the agreement for two years, that a renewal had to be signed by July 1 and that the current agreement would expire Jan. 1, 2023, the complaint said. Mississippi TV didn’t respond by the July 1 deadline, it said. After several communications in September, Coastal didn’t sign the second amendment, leading the existing agreement to expire in January, it alleged.
The parties continued to work without a contract, the complaint said. Mississippi TV continued to receive revenue “attributable to advertising sold on WLOV-TV,” but it “failed to pay a portion of its net revenue to Coastal throughout 2023,” it said. After June 23, it “refused to provide any further accounting of revenues” to Coastal, it said.
During the JSSA term, Coastal bought a $378,933.01 transmitter that was placed on a tower owned by Mississippi TV, the complaint said. The tower allowed WLOV to reach its entire licensed area, it said. Coastal requested the return of the transmitter in January of this year, but agreed to work out a transition period, the complaint said.
On Feb. 1, Coastal notified Mississippi TV it entered into a new agreement with WCBI-TV Columbus, Mississippi, and the informal agreement between the parties was terminated, said the complaint. Mississippi TV removed the WLOV feed and shut off the transmitter, it said. Mississippi TV falsely claimed it owned the transmitter, it said. Though it "seemingly admitted" in March that Coastal owned the transmitter, the defendant has refused to return it, said the complaint.
Mississippi TV “improperly converted” Coastal’s $400,000 transmitter and prevented the broadcaster from retrieving it, the complaint said. As a result of the conversion, WLOV is unable to cover the entire viewing area, as mandated by the FCC, it said. The inability to cover its broadcast area “impacts the safety of viewers in the WLOV-TV area, who rely on this transmission for emergency weather alerts and other vital information,” it said. The station is currently operating under an FCC special temporary authority that expires Aug. 12, the complaint said.
The WLOV feed from the transmitter “remains off” and Mississippi TV has denied Coastal access to retrieve the transmitter and related equipment. The lower power transmission also affects Coastal’s partnership with the CW Network and advertisers “who rely on WLOV-TV to broadcast their advertisements over the entire viewing area,” it said. The defendant also still owes Coastal for monies due under the agreement for 2021 totaling $849,767.30, alleged the plaintiff.
The “only purpose” for Mississippi TV to turn off Coastal's transmitter, and retain control of an unused one, “is to harm Coastal’s business,” damage its partnerships with other broadcasters and advertisers and give WTVA “an unfair durable competitive advantage” during the time the WLOV-TV transmitter is down, alleged the complaint. “The longer the transmitter is down, the longer the length of time for viewer return is exacerbated, and the more durable WTVA’s unfair competitive advantage becomes,” it said.
Coastal asserts claims of conversion, unjust enrichment, breach of contract and a declaratory judgment that the parties’ agreement was never renewed and expired Jan. 1, 2023. It requests a preliminary and permanent injunction allowing Coastal to remove its transmitter; compensatory and other damages stemming from advertising revenue; and attorneys’ fees and costs.