7-Eleven Sues In-Store TV Provider

Says Digital Display Networks owes chain $4.6 million

DALLAS -- 7-Eleven Inc. claims in court that Los Angeles-based Digital Display Networks owes it $4.6 million for digital ads in the chain of convenience stores, according to a Courthouse News Service report.

Dallas-based 7-Eleven sued Digital Display Networks in Dallas Federal Court. It claims that under a 2008 agreement, Digital Display agreed to provide a turnkey network of high-definition video monitors to display in-store and third-party advertisements.

A year later, the parties entered into a network services agreement in which Digital Display agreed to pay $99 a month for each connection it used on 7-Eleven's broadband network, according to the complaint.

"In essence, DDN needed access to 7-Eleven's broadband network to operate the digital signage and advertising network," the complaint states, according to the report. "Without access to 7-Eleven's broadband network, DDN would not be able to operate its digital advertisement network."

7-Eleven said it has not been paid since November 2011, and that Digital Display owes it more than $4.6 million.

"DDN acknowledged and agreed that the network services agreement would automatically terminate should DDN fail to pay at least $2 million of the outstanding balance owed to 7-Eleven on or before Oct. 1, 2012," the complaint states. "The $2 million payment was never received."

7-Eleven seeks actual damages for breach of contract, according to the report.