2023 Laws of Puerto Rico › TITLE TEN - Commerce (§§ 1 — 4196) › Subtitle 3 - Business Regulations Generally (§§ 2001-2016 — 4196) › Chapter 205 - Distribution and Showing of Cinematographic Films (§§ 2101 — 2105) › § 2103 - Proscribed acts or practices

The following unfair or deceitful business acts or practices in the showing or distribution of cinematographic films are hereby proscribed:
(a) Adjudicate the showing of a cinematographic film using undesirable competitive methods which are not uniform for all the exhibitors.
(b) Exclude or impede without just cause, the participation of an exhibitor in any procedure related to an adjudication for the showing of a cinematographic film.
(c) Invite to bid, or adjudicate the exhibition of any cinematographic film in Puerto Rico without a previous trade show to exhibitors in Puerto Rico and in such a manner that the showing is not strictly film to film or theater to theater.
(d) Include as part of the terms to be considered in the adjudication for the showing of cinematographic films, a provision permitting that the film subject thereto, can be transferred to another theater before the term agreed upon expires.
However, any film being shown, may be transferred from one theater to another in a multiplex house, subject to the agreements between the distributor and the exhibitor.
(e) Initiate other showings of a cinematographic film in contravention to the provisions of subsection (a) of this section.
(f) Adjudicate the exhibition of a cinematographic film, except in cases of spot booking, without a seven (7)-day notice to the exhibitors.
(g) Adjudicate a first run cinematographic film by spot booking.
(h) Not make the selected bid(s) available for inspection by the bidders during the 5 working days following the adjudication.
(i) Change the method of adjudicating the exhibition of a cinematographic film without just cause.
(j) Require, accept or offer payment of guarantees and advances when they are unreasonable.
(k) Require the exhibitors directly or indirectly to keep minimum admission prices, and/or require certain admission prices for the film directly or indirectly, as a condition to adjudicate it.
(l) Adjudicate the right to show a cinematographic film in a discriminatory manner or for considerations foreign to the theater’s merits, the terms of the offers, and the relative credit risks of the bidder.
(m) Compel an exhibitor to participate in the payment of publicity expenses in communication media which are not circulated in the market area where he operates.
(n) Grant preferred treatment to any exhibitor.
(o) That any exhibitor or distributor shall also operate distribution and exhibition enterprises simultaneously, unless they are exhibition enterprises which have converted into direct exhibitors by exception, and/or that members of the board of directors or officials of a distributing or exhibiting enterprise are also at the same time, members of the board of directors or officials of another distributing or exhibiting enterprise, unless they are exhibition enterprises converted into exhibitors by exception.
(p) That a distributing firm operate theaters for the showing of cinematographic films or enter into an agreement with an exhibitor for the latter to exhibit cinematographic films owned solely by that distributor.
(q) That a distributor enter into agreements with the exhibitors on the division of territories to distribute the films.
(r) That an exhibitor, tacitly or implicitly, impose as a condition to exhibit a cinematographic film that the distributing firm shall grant him the right to exhibit another or other films.
(s) Prohibit, restrict or prevent any exhibitor from offering special events (special matinees, kiddie shows or others) in addition to the film being shown, when said events do not interfere with the terms offered in the bid.
(t) That one or more exhibitors agree or exercise any type of pressure on one or more distributing enterprises with the purpose of having the latter totally limit or restrict the availability of the films to a third party.
(u) That distributors grant a clearance period among movie theaters which are not in substantial competition.
(v) Grant or put into effect a clearance period against movie theaters in substantial competition with the one granted the showing license, when said period lasts longer that what is needed to protect the latter.
(w) That the exhibitors agree or conspire among themselves to obtain favorable terms or concessions from the distributors.
History —June 14, 1980, No. 133, p. 494, § 3; June 9, 1996, No. 52, § 2.