LOCKYER TRAINS CAMERA ON HOLLYWOOD STUDIOS.

Byline: Greg Hernandez and Harrison Sheppard Staff Writers

State Attorney General Bill Lockyer has subpoenaed Hollywood's major film studios to find out whether granting exclusive booking rights to specific chains has hindered smaller theater operators.

Lockyer's investigation began in June 2004 after complaints by an independent theater in San Jose about Century Theatres and its ``clearance'' rights for many major studio releases. That particular dispute has since been resolved voluntarily without legal action, but other lawsuits are pending and Lockyer's investigation has been broadened to look at the whole industry.

``The theaters that have complained to our office are independents,'' Lockyer spokesman Tom Dresslar said. ``In a lot of cases, the independent smaller theaters do add to the cultural environment of a community. To the extent these clearance agreements endanger their survival, it may not be a legal matter, but it's definitely an issue of concern in communities across the state.''

The clearance agreements are legal but officials with Attorney General's Office said potential antitrust issues could come into play.

``One factor to look at is how close they are to each other,'' Dresslar said. ``If they're across the street from each other, it raises less antitrust concerns. The farther you go out the greater the potential issues are.''

None of the studios expected to receive subpoenas, Paramount Pictures, Walt Disney Co., 20th Century Fox, DreamWorks, New Line Cinema, or Sony Pictures Entertainment, had any comment on the investigation, but Paramount and Sony said Friday that they are cooperating with the investigation.

``Obviously, the theaters contend it's completely legitimate,'' Dresslar said. ``We're not so sure, but we by no means think it's a slam-dunk that even if they're, say, a couple miles apart, that there's an antitrust problem. Our main concern is to the maximum extent possible to preserve and enhance consumer choice.''

Robert Laemmle, owner of the Laemmle Theatres art-house chain, said Friday that the situation is often a case of big chains needlessly trying to crush smaller competitors.

``In many cases, it shouldn't be a problem, and sometimes they try to use their muscle in excess of what is really necessary,'' he said.

Three years ago, Laemmle Theatres locked horns with AMC Entertainment Inc., which it then accused of using ``coercion'' to keep the art-house chain from screening the major studio releases ``About a Boy,'' ``Unfaithful'' and ``Insomnia'' at its Fallbrook 7 location because of its close proximity to AMC's Promenade 16 megaplex in Woodland Hills.

AMC had said it had requested the clearance and it was honored by the studios. Robert Laemmle took his complaints public and AMC quickly did an about-face.

``It was amicably settled,'' Laemmle said. ``Whenever small guys buy a new theater it's likely to happen, and you constantly have to stay on top of it.''

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com