IMAX are asked to appear – Newspaper Kommersant No. 203 (7404) dated 01.11.

The united cinema chain Formula Kino and Cinema Park filed a lawsuit demanding that IMAX be obliged to fulfill its contractual obligations. IMAX ceased operations in Russia in June, but other cinema chains, if they go to court because of this, only with a demand, on the contrary, to terminate the contract. Market participants believe that cinemas are suing IMAX with the expectation of the company’s return to the country.

“Kommersant” found in the filing cabinet of arbitration cases the claims of the combined cinema network “Formula Kino” and “Cinema Park” against the Canadian corporation IMAX, a developer of systems for shooting and projecting images in large format. On October 26, two legal entities of the cinema chain (Cinema Park and Rising Star Media) filed a complaint to compel IMAX “to perform duties in kind” (to do what is written in the contract, and not pay compensation), follows from the rulings of the Arbitration Court Moscow. The lawsuits were left without movement for formal reasons. In the united cinema network, Kommersant refused to comment, and so did IMAX.

IMAX, according to representatives of the Association of Cinema Owners (AVK), has stopped operations in Russia since June 1. There was no public statement from IMAX itself, a company representative did not answer Kommersant’s questions about operations in the Russian Federation. In August, the general director of the Formula Kino and Cinema Park cinema chain, Alexei Vasyasin, told RBC that the cinema chain intends to sue IMAX for compliance with the terms of the contract if it does not resume work by the end of the year. IMAX forbade showing films in its format, although the equipment belongs to the distributors themselves, Mr. Vasyasin explained.

Russian cinema chains have already filed lawsuits against IMAX, but with a demand to terminate the contract for the maintenance of projectors. In August, the Arbitration Court of the Chelyabinsk Region accepted such a claim from the Empire Games company (the operator of the Soft Cinema network). According to Nevafilm Research, Myagky Cinema closed 32% of its screens during the first half of 2022, more than any other cinema chain. There were no IMAX representatives at the preliminary meetings, the next one is scheduled for March 6, 2023, follows from the court rulings. A Kommersant source in the media market claims that IMAX has “no one left” in Russia.

IMAX daily and remotely updates cinema systems, this happens before the first screening while adjusting the picture and sound, said Alexey Voronkov, chairman of AVK. He added that the keys needed to rent films in IMAX format are released only by the company itself.

According to Mr. Voronkov, cinema chains suing IMAX are counting on the return of the global film business to the country: “There will be no such relations as before. If suddenly in five or ten years the film companies decide to start working again in Russia, the decision of the court in the IMAX case will be a trump card for cinemas.” It is impossible to change the situation out of court, he believes, since IMAX “will never admit that they have agreed on something with Russian companies.”

Cinema chains demanding to enforce IMAX’s obligation “are probably trying to recognize the right to use the equipment transferred to them,” said Anna Belova, adviser to the practice of dispute resolution and investigations at Level Legal Services. She found it difficult to assess the chances of the plaintiffs to win, noting that for this you need to know the terms of the contracts with IMAX and the grounds for the lawsuit filed.

Compulsion to fulfill obligations is another way to protect the rights of Russian companies in connection with the departure of foreigners from the Russian Federation, says Aleksey Stankevich, partner at Orchards law firm. Similarly, the lawyer clarifies, Russian Railways, as part of claims to challenge the unilateral termination of contracts, succeeded in compelling Siemens to fulfill its obligations through interim measures. According to them, special tools, measuring equipment, spare parts, as well as other materials and equipment necessary for the execution of the contract were transferred to Russian Railways.

Yuri Litvinenko, Anna Zanina