CBS has temporarily regained distribution rights for both “Wheel of Fortune” and “Jeopardy!” after a state judge reversed an earlier ruling that gave Sony Pictures Television control over the game shows.
A California state appeals court issued a temporary reprieve for CBS on Wednesday, halting Sony’s attempt to wrest control of the lucrative sales and syndication rights for two of television’s most popular game shows.
A three-judge panel from California’s Second Appellate District on Wednesday reversed an earlier decision by a lower court that had granted Sony the right to take over sales and distribution responsibilities from CBS.
The reversal pauses the enforcement of an April 10 preliminary injunction that had shifted those responsibilities to Sony.
Sony owns the intellectual property rights to both “Wheel of Fortune” and “Jeopardy!,” stemming from its 1986 acquisition of Merv Griffin Enterprises.
Merv Griffin, the legendary television producer and creator of both shows, originally struck a perpetual distribution agreement in the mid-1980s with King World Productions — the company that successfully relaunched the programs into first-run syndication and later became part of CBS in 2000.
Since then, CBS has held distribution and sales responsibilities while Sony retained production control.
That arrangement has helped keep both shows as fixtures in early evening television for decades, with “Wheel” debuting in syndication in 1983 and “Jeopardy!” following in 1984.
Today, the programs remain syndicated powerhouses, airing on more than 150 stations across the US.
Sony alleges that CBS breached their distribution agreement by entering into unauthorized licensing deals for “Wheel of Fortune” and “Jeopardy!”, then paying itself commissions on those deals without properly compensating Sony.
“The reality is that CBS has been egregiously undercutting the value of these shows in favor of its own self-interest and in violation of its contractual obligations,” the lawsuit states.
Sony also claims CBS licensed the shows at below-market rates, withheld over $3.6 million in foreign licensing revenue and failed to properly support the shows due to internal budget cuts and layoffs.
In response, CBS said, “Sony’s claims are rooted in the fact they simply don’t like the deal the parties agreed to decades ago,” and emphasized its decades-long role in helping make the shows cultural institutions.
CBS, for its part, has accused Sony of attempting to undermine a mutually agreed-upon and long-standing deal.
“This is a transparent cash grab,” CBS lawyers asserted in court filings, arguing that Sony is attempting to renegotiate a deal it has long accepted—simply because it no longer finds the terms favorable.
The appellate court’s decision stays the lower court’s preliminary injunction, effectively preventing Sony, for now, from cutting CBS out of the distribution process. That lower court ruling would have allowed Sony to halt the delivery of new episodes to CBS for distribution to its station affiliates.
Under the appellate court’s order, Sony must file its formal appeal brief by April 28. CBS has until May 9 to submit its response.
Both companies declined to comment on the latest development in the legal saga, which could have significant financial and operational implications for two of the longest-running shows in television history.
