The group’s flagship Beijing Pangu Plaza hotel is featured in the film as part of a deal worth about $1 million to Paramount Pictures, Jia Fu Company, Jia Fu China Co. Ltd. and Beijing Cheng Xin Sheng Shi Sports Culture Development Co. Ltd., whom Pangu says did not perform the terms of the deal.
Pangu claims the contract was terminated on June 15 and says it is also terminating permission for the use of its image, logo, or the building from the inside or out. If already used in the film, “they shall all be deleted,” the company said.
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Pangu had expected the movie’s world premiere to be held at its Pangu 7 Star Hotel. In a statement, Pangu said it has filed charges over the issue, which has allegedly led to “financial and reputation loss.”
Deadline reports that “The building does indeed feature in the movie, which I caught at CineEurope this week,” but “Could this issue affect the film’s release? I’m told no. A source says, ‘This is all about product placement, they didn’t feel like they got full promotion and exposure.’ But, it has ‘nothing to do with distribution.’”
China Film Group, the state-backed entity that controls distribution in the country, was not named by Pangu. The movie closes the Shanghai Film Festival this weekend and will open in both the U.S. and China on Friday.
“Pangu Plaza has a prominent placement in Transformers 4 and it looks beautiful onscreen. We regret that Pangu is not currently satisfied with certain aspects of our collaboration and are working to resolve its concerns,” said a statement from Paramount.