HBO, Discovery Claim Merchandiser Owes Millions

After Delivery Agent Inc., a company that specialized in selling licensed merchandise for entertainment companies, filed for bankruptcy in September, some of those companies—like HBO, Discovery and CBS—have come out saying that Delivery Agent Inc. owes them money.

Discovery's deal with Delivery Agent Inc. included a 14 percent royalty on all sales at the Discovery Channel Store and a minimum royalty payment of $1 million, but Discovery hasn't received any payments since 2015. This put the total debt at about $1.6 million.

HBO claimed that the company owes it at least $1.2 million. Delivery Agent Inc. proposed retribution totaling $619,385, but HBO said that it isn't enough, and that Delivery Agent Inc. overstated its expenses and used an incorrect revenue share percentage.

"Without the underlying licensed rights granted under the agreements, any purchaser of [Delivery Agent Inc.'s] assets would fail to have a license from HBO to distribute and/or sell HBO licensed goods, and in turn, any attempt by such purchaser to do so would be unauthorized and would constitute infringement," HBO's lawyers said, according to The Hollywood Reporter.

Other companies, like CBS and Showtime, said that they object to whomever buys Delivery Agent Inc. assuming licensing agreements, as the company has defaulted and can't provide assurance for future performance, putting their future revenue into question.