SMC Speciality Finance v. Zhengfu Pictures Limited CA2/2

FACTS AND PROCEDURAL BACKGROUND

I. Facts

A. Distribution and financing of Greyhound Greyhound is a film set during World War II and stars Tom Hanks. In July 2017, Sony Pictures Worldwide Acquisition Inc. (Sony) entered into a “co-financing and distribution” agreement for Greyhound (the Greyhound Agreement) with a Chinese company called Zhengfu Pictures Limited (Zhengfu). Under the Greyhound Agreement, Sony and Zhengfu agreed that (1) each

2 would contribute money toward the production of the film, (2) each would collect “certain additional revenues” from the film, (3) each would own a share of the film’s copyrights, and (4) Zhengfu would have a 15-year exclusive license to distribute the film in mainland China as well as the right to negotiate for the right to distribute the film in Hong Kong, Taiwan, and Macau. The only person Sony dealt with on behalf of Zhengfu was Alex Zhang (Zhang). Consistent with his primary role, Zhang was listed as an “executive producer” during the end credits of the Greyhound film. B. Zhengfu finances Destroyer by offering up its rights in the Greyhound Agreement as collateral Zhengfu and another Chinese company called Beijing Zhumeng…