Within years of its launch, Showtime entered into licensing agreements with several movie studios. Following Viacom's 1983 acquisition of a joint stake in The Movie Channel, Paramount Pictures (then-owned by Gulf+Western) signed a five-year exclusive first-run distribution agreement with Showtime and The Movie Channel to carry the studio's films through 1989. On July 15, 1987, HBO signed a five-year deal with Paramount Pictures to broadcast 85 of their films released from May 1988 onward; in May 1989, after it signed a licensing deal with HBO, Paramount filed a lawsuit against Showtime Networks, Viacom and its parent National Amusements over Showtime's alleged refusal to pay a total of $88 million in fees for five films (that underperformed in their theatrical release) to reduce the minimum liability for its 75-film package from the studio. After Paramount Pictures was purchased by Viacom in 1994, Showtime (which was also owned by Viacom at the time) signed a seven-year distribution deal with that studio which took effect in January 1998, following the expiration of Paramount's contract with HBO.