The legal skirmish between small movie theaters chains and larger exhibitors over alleged anti-competitive practices shows no signs of abating.
On Tuesday, IPic-Gold Class Entertainment sued Regal Entertainment and AMC Entertainment in a Texas district court, alleging the nation’s two largest theater chains were using their “market power” to “squeeze out” iPic’s new theater in Houston and one planned in the Dallas area.
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IPic alleges that in July 2014 Regal and AMC told studios that any film they licensed to the IPic theaters in Texas would not play at nearby theaters operated by the larger chains.
“They have threatened film studios with an illegal boycott: studios must license top first-run films to defendants, but not to IPic,” the lawsuit states.
In today’s world every theater needs all the product it can get.
Hamid Hashemi, chief executive of iPic
As a result, IPic alleges, the new Houston theater has been unable to get licenses to screen such first-run movies as “The Martian,” “Bridge of Spies” and “Steve Jobs,” threatening its its viability as a business. The planned theater in the Dallas area faces a similar obstacle, IPic states.
“It’s a predatory action,” said Hamid Hashemi, chief executive of IPic, a Boca Raton, Fla., company that operates 12 luxury theaters in Florida, California and several other states. “In today’s world every theater needs all the product it can get.”
The lawsuit centers on an industry practice known as clearances, which are license agreements in which theaters obtain permission from studios to exclusively show first-run movies in their theaters within certain zones, thereby blocking nearby rivals from playing the same movie at the same time.
The courts have allowed limited use of clearances in cases in which theaters are in substantial competition with one another.
But IPic maintains that its theaters do not compete with the AMC and Regal theaters because they are smaller, sell higher-priced tickets and offer premium services such as luxury dining and beverage services. IPic is seeking an injunction to remove the clearances on its theaters.
In a statement, AMC defended its actions.
“Allocated film zones are a long-standing, well-established industry practice,” a spokesman for AMC said. They have “demonstrated benefit to all stakeholders – moviegoers, studios and exhibitors.”
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A behind-the-scenes look at filming around the world for television and movies, as seen from the streets.
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Mariska Hargitay, who stars on “Law & Order: SVU” as Olivia Benson, directs an episode of the TV series on Dec. 15 in New York City.
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Elle Fanning, left, and Naomi Watts are seen filming “Three Generations” on Nov. 19, 2014, in New York City.
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Rami Malek on the set of “Mr. Robot” on Nov. 7, 2014, in New York City.
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Peter Sarsgaard, left, Uma Thurman, Brian Cox and Penn Badgley on the set of “The Slap” on Nov. 10, 2014, in New York City.
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Penn Badgley and Uma Thurman on the set of “The Slap” on Nov. 10, 2014, in New York City.
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Donnie Wahlberg and his stand-in on the set of “Blue Bloods” on Oct. 31, 2014, in New York City.
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Hilary Duff and Thorbjorn Harr on the set of “Younger” on Oct. 29, 2014, in New York City.
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Patricia Arquette on Oct. 22, 2014, in Los Angeles.
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Zac Barnett of American Authors is seen on set for a video shoot on Oct. 26, 2014, in Dickson, Tenn.
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Extras acting in the HBO series “Game of Thrones” leave the bullring on Oct. 22, 2014, as film crews began shooting part of the fifth season in the southern Spanish city of Osuna.
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Indira Varma is on the set of “Game of Thrones” at Real Alcazar on Oct. 19, 2014, in Seville, Spain.
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Actors film “Game of Thrones” at Real Alcazar on Oct. 19, 2014, in Seville, Spain.
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Nikolaj Coster-Waldau is on the set of “Game of Thrones” at Real Alcazar on Oct. 19 in Seville, Spain.
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Actor Mark Wahlberg and Amanda Seyfried are seen on the set of “Ted 2" on Oct. 7, 2014, in New York City with Ted (the bear is voiced by Seth MacFarlane).
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Ted looks out the window on the set of “Ted 2" on Oct. 5, 2014, in New York City.
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James Spader on the set of “The Blacklist” on Oct. 8, 2014, in New York City.
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Vince Vaughn is seen on the set of “Unfinished Business” on Oct. 4, 2014, in Boston.
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Zac Efron is seen on the set of “We Are Your Friends” on Sept. 26, 2014, in Los Angeles.
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Julianne Moore and Michael Shannon are seen filming “Freeheld” in the Queens borough of New York on Oct. 2, 2014.
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Zac Efron and Max Joseph on the set of “We Are Your Friends” in Los Angeles.
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Amanda Seyfried on the set of “Ted 2" in Boston.
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Joseph Gordon-Levitt and Lizzy Caplan on the set of “Christmas Eve Project” in Brooklyn, N.Y.
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Actor Peter Vack and actress Lola Kirke for “Mozart in the Jungle” in New York City.
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Zac Efron on the L.A. set of “We Are Your Friends.”
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Rebecca Ferguson and Tom Cruise on the set of “Mission: Impossible 5" on the roof of the opera house in Vienna.
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Robert De Niro and Anne Hathaway film “The Intern” on Aug. 26 in New York City.
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Steve Buscemi films on the last day of principal photography for “Boardwalk Empire” on Aug. 25 in the Far Rockaway section of New York City.
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Zac Efron is seen filming “We Are Your Friends” on Aug. 21, 2014, in Los Angeles.
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Anthony Mackie, Joseph Gordon-Levitt and Seth Rogen on the set of “Christmas Eve Project” on Aug. 18, 2014, in New York City.
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Actor James Spader on the set of “The Blacklist” on Aug. 14, 2014, in Brooklyn, N.Y.
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Ben Affleck walks along a Detroit sidewalk on the set of “Batman v Superman: Dawn of Justice” on Aug. 9.
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Nicole Kidman, Christopher Walken and Jason Bateman are seen on the set of “The Family Fang” in Harriman Park, N.Y., on Aug. 14.
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James Franco is seen in character on set of “Michael” in Freeport, N.Y., on Aug. 14.
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Sienna Miller on the set of “Adam Jones” in London’s Leicester Square.
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Jonny Lee Miller on the set of the television series “Elementary” on Aug. 5 in New York City.
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Uma Thurman on the “Adam Jones” set in London.
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Nicole Kidman is seen at the filming of “The Family Fang” on Aug. 4 in New York City.
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Actor Jason Bateman on the set of “The Family Fang” in Rye, N.Y.
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Amanda Seyfried on the “Ted 2" set in Boston.
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Helen Mirren filming ‘The Woman in Gold’ in Los Angeles.
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Charlie Hunnam filming “Sons of Anarchy” in Los Angeles.
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Actors Jason Orley, Zack Pearlman and Robert De Niro on the set of “The Intern” in Brooklyn, N.Y.
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Actor Bobby Cannavale and director Martin Scorsese on the set of the “Untitled HBO/Rock N’ Roll Project” in New York City.
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Robert De Niro’s stand-in and stunt double on the set of “The Intern” in Brooklyn, N.Y.
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Katie Holmes and Ryan Reynolds filming “Woman in Gold” in Los Angeles.
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Cameron Monaghan and Emmy Rossum on the set of “Shameless” in Los Angeles.
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Alison Brie and Jason Sudeikis on the set of “Sleeping With Other People” in New York City.
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Anne Hathaway on the set of “The Intern” in New York City.
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Matt Bomer and Laura Ramsey on the set of “White Collar” in New York City.
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Judd Apatow and Amy Schumer on the set of “Trainwreck” in New York City.
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Bill Hader and Amy Schumer on the set of “Trainwreck” in New York City.
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Robert De Niro and Linda Lavin on the set of “The Intern” in New York City.
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Christoph Waltz is on the set of “Tarzan” in London.
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Adam Scott on the set of “Sleeping With Other People” in New York City.
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Patricia Clarkson, left, and Samantha Bee on the set of “Learning to Drive” in New York City.
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Scott Cooper and Juno Temple on set of “Black Mass” in Boston.
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Benedict Cumberbatch on the set of “Black Mass” in Boston.
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Amy Schumer on the set of “Trainwreck” in New York City.
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Josh Helman and Damon Herriman on the set of “Flesh and Bone” in New York City.
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Taylor Lautner on the set of “Run the Tide” in Los Angeles.
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Amanda Peet on the set of “Sleeping With Other People” in New York City.
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Amanda Peet and Jason Sudeikis on the set of “Sleeping With Other People” in New York City.
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Sophie Nelisse and Kathy Bates on the set of “The Great Gilly Hopkins” in New York City.
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Actors Jason Sudeikis and Margarita Levieva on the set of “Sleeping With Other People” on June 9, 2014, in New York City.
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Johnny Depp on set of “Black Mass” on June 9, 2014, in Boston.
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Bradley Cooper, center, with cast and crew on the set of “American Sniper” in Malibu on June 4.
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Bradley Cooper and Sienna Miller film a wedding scene for “American Sniper” in Los Angeles.
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Kevin Connolly, left, Kevin Dillon, Adrian Grenier and Jerry Ferrara film a scene for “Entourage” on June 2 in L.A.
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Vin Diesel, center, on the set of “Fast & Furious 7" on June 2 in L.A.
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Saoirse Ronan and Emory Cohen on the set of “Brooklyn” in New York City.
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Actor Ed Harris on the set of “The Adderall Diaries” on May 24, 2014, in New York City.
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Elijah Wood filming “Wilfred” on May 23, 2014, in Los Angeles.
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Clint Eastwood and Sienna Miller on the set of “American Sniper” in Los Angeles.
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Sylvester Stallone poses with his puppet as he takes part in the TV show “Le Grand Journal” at the Cannes Film Festival.
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Poppy Montgomery and Boris Kodjoe on the set of “Unforgettable” in New York City.
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Jemima Kirke on locationin New York City for HBO’s “Girls.”
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Allison Williams, who plays Marnie Michaels, and Ebon Moss-Bachrach, who is Desi, on the set of “Girls” in New York City.
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Diane Kruger and Demian Bichir film a scene from the TV series “The Bridge” in Los Angeles.
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Lena Dunham filming “Girls” in New York City.
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Kelsey Grammer filming “Breaking the Bank” in London.
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Kiefer Sutherland on the set of “24" on March 9, 2014, in London.
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Mary Lynn Rajskub on the set of “24" on March 9, 2014, in London.
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Simon Pegg on the set of ‘Absolutely Anything’ on April 28, 2014, in London.
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Actress Hailee Steinfeld with a fake pregnant belly and Asa Butterfield on the set of “Ten Thousand Saints” in Tompkins Square Park on May 1, 2014, in New York City.
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Jamie Foxx filming “The Amazing Spider-Man 2" on April 21, 2013, in New York City.
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Actor Andrew Garfield, center left, is seen on the set of “The Amazing Spider-Man 2" in New York City with his stunt double William Spencer, right, and a second stunt double.
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Actor Andrew Garfield, right, rehearses a scene with his stunt double William Spencer on the “The Amazing Spiderman 2" movie set in Madison Square Park in New York.
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Actor Andrew Garfield, right, his stunt double William Spencer, center, and a second stunt double are seen on the set of “The Amazing Spider-Man 2" in New York City.
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Jamie Foxx filming on location for “The Amazing Spider-Man 2" on April 21, 2013, in New York City.
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Andrew Garfield and Emma Stone filming “The Amazing Spider-Man 2" on location in New York City.
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Jamie Foxx as Electro/Max Dillon in “The Amazing Spider-Man 2" on location in New York City.
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Actor Andrew Garfield, right, his stunt double William Spencer, center, and a second stunt double are seen on the set of “The Amazing Spider-Man 2" in New York City.
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Actor Paul Giamatti films a scene at the “The Amazing Spiderman 2" movie set in Madison Square Park on June 22, 2013, in New York City.
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Actor Andrew Garfield is seen on the set of “The Amazing Spider-Man 2" in New York City.
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Actor Paul Giamatti is seen on the set of “The Amazing Spider-Man 2" in New York City.
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Actor Paul Giamatti on the set of “The Amazing Spiderman 2" in New York City’s Madison Square Park.
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Jamie Foxx on location for “The Amazing Spider-Man 2" in New York City.
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Kyra Sedgwick on the set of “Time Out of Mind” in New York City.
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Kate Beckinsale on the film set of “Absolutely Anything” in London.
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Lena Dunham and Adam Driver film a scene for “Girls” on April 16, 2014, in New York City.
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Sam Worthington filming “Cake” on location in Los Angeles.
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Jennifer Aniston filming “Cake” on location in Los Angeles.
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Tina Fey and husband Jeff Richmond on the set of “Tooken” on March 27, 2014, in New York City.
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Actress Katie Holmes is seen on the set of “Dangerous Liaisons"on April 3, 2014, in New York City.
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Jena Malone on the set of “Time Out of Mind” on April 1, 2014, in New York City.
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Julianne Moore and Kristen Stewart play mother and daughter filming on location for “Still Alice” on March 21, 2014, at Lido Beach, N.Y.
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Richard Gere on the set of “Time Out Of Mind” on March 26, 2014, in New York City.
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Jeremy Renner films an action scene in Aoasta, Italy, for “Avengers: Age of Ultron.”.
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Elizabeth Olsen and Aaron Taylor-Johnson film on location in Pont-Saint-Martin in Aosta, Italy, for “Avengers: Age of Ultron.”
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Actors are suited up for special effects on the set of “Avengers: Age of Ultron” in Aosta, Italy.
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Richard Gere and Ben Vereen on the set of “Time Out Of Mind” on March 26, 2014, in New York City.
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Actress Zoe Saldana on the “Rosemary’s Baby” set on the last day of shooting on March 27, 2014, in Paris.
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Julianne Moore and Alec Baldwin film “Still Alice” on New York’s Long Island.
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Peter Capaldi is up a tree during filming for the eighth season of BBC’s “Doctor Who” in Bute Park in Cardiff, Wales.
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Katherine Heigl films the NBC pilot of “State of Affairs” in New York City.
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A large monster is spotted during filming of the BBC series “Doctor Who” in Cardiff, Wales.
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Kate Walsh is ready for a scene in the TV movie “Bad Judge,” filming in Los Angeles.
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Arnold Schwarzenegger performs on the set of “Despierta America” with Joe Manganiello at Univision Headquarters in Miami.
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Actresses Kristen Stewart and Julianne Moore on the set of “Stille Alice” on March 14, 2014, in New York City.
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Julianne Moore and Alec Baldwin on the set of “Still Alice” on March 11, 2014, in New York City.
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Carey Mulligan on the set of “Suffragette” on March 14, 2014, in London.
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Donal Logue, left, and Ben McKenzie on the set of “Gotham” on March 20, 2014, in New York City.
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Lea Michele on the set of “Glee” on March 13, 2014, in New York City.
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Kevin McHale, left, Chord Overstreet, Chris Colfer and Darren Chris on the set of “Glee” at Washington Square Park on March 14, 2014, in New York City.
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Lea Michele and Michael Lerner on the set of “Glee” on March 16, 2014, in New York City.
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Actor Ian Ziering is seen on the set of “Sharknado 2" in New York City.
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A shark’s head prop is carried onto the set of “Sharknado 2" in New York City. The prop assistant’s arm remained intact.
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Liam Neeson films a scene for the TV series “Entourage” in Los Angeles.
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Jeremy Piven (Ari Gold), left, and Liam Neeson work together on a scene for the TV show “Entourage” in L.A.
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Ian Ziering and Vivica Fox on the set of “Sharknado 2" on Feb. 19, 2014, in New York City.
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Mark Wahlberg and Jessica Lange filming “The Gambler” on location in Los Angeles.
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Liev Schreiber films “Ray Donovan” on Feb. 03, 2014, in Los Angeles.
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Louie CK on the set of “Louie” on Jan. 31, 2014, in New York City.
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Wil Estes and Vanessa Ray on the set of “Blue Bloods” on Jan. 31, 2014, in New York City.
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Skyler Gisondo and Ben Stiller on the set of “Night at the Museum 3" on Feb. 6, 2014, in New York City.
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Actors Ethan Hawke, Hailee Steinfeld, left, and Asa Butterfield on the set of “Ten Thousand Saints” on Jan. 27, 2014, in New York City.
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Jon Hamm on the set of “Mad Men” on Jan. 14, 2014, in Los Angeles.
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George Clooney, second from left, filming “Tomorrowland” at Ciudad de las Artes y las Ciencias on Jan. 21, 2014, in Valencia, Spain.
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Action from the set of TV series “24" on Jan. 22, 2014, in London.
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Chris Evans and Alice Eve on the set of “1:30 Train” on Dec. 18, 2013, in New York City.
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Bethany Joy Lenz, left, Rumer Willis and Robert Hoffman in Washington Square Park filming “Songbyrd” on Jan. 20, 2014, in New York City.
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Kevin Bacon and Sprague Grayden on the set of “The Following” on Dec. 10, 2013, in New York City.
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Jennifer Lopez on the set of “The Boy Next Door” in Los Angeles.
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Mark Wahlberg is seen on set filming the movie ‘Transfomers 4: Age of Extinction’ on Sunday October 27,2013 in Hong Kong,China.
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Mark Wahlberg performs on the set of “Transformers: Age of Extinction” in Hong Kong on Oct. 26, 2013.
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Scarlett Johansson filming a scene for her new movie, “Lucy” on Oct. 21, 2013, in Taipei, China.
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Director Clint Eastwood, right, and actor John Lloyd Young as Frankie Valli on the set of “Jersey Boys” in Kearny, N.J.
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Actress Li Bingbing and actor Stanley Tucci filming “Transfomers 4: Age of Extinction” in Hong Kong.
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Edie Falco, left, and Julie White on the set of “Nurse Jackie” in New York City.
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Actor Mark Wahlberg on the set of “Transfomers 4: Age of Extinction” in Hong Kong.
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Quvenzhane Wallis, right, is shown with her stand-in on the set of “Annie” in September in New York City.
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Quvenzhane Wallis and Jamie Foxx are seen on the set of “Annie” in September in New York City.
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A spokesman for Regal could not be reached.
The lawsuit is the latest of several cases filed by independent and regional theater chains over alleged anti-competitive business practices by larger circuits.
Last year, Cobb Theatres sued AMC in U.S. District Court in Georgia. Cobb, which operates 20 theaters, accused AMC of using its “monopoly power” to block some first-run movies from being screened at an upscale cinema and dining complex in Brookhaven, a suburb of Atlanta. The suit alleges that AMC persuaded studios to give two nearby AMC theaters in Buckhead preferential treatment.
AMC denied the allegations and moved to dismiss the case. A federal judge in March allowed it to proceed.
The complaints from IPic and others have prompted a wide-ranging probe by the Department of Justice, which this summer ordered Regal Entertainment Group, AMC Entertainment Holdings Inc. and Cinemark Holdings Inc. to supply documents as part of a widening investigation into whether the largest theater chains violated federal antitrust laws. The government also has assembled a task force of attorneys and economists to examine the issue.
Twitter: @rverrier
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