The city of Los Angeles has sued Paramount Pictures Corp. over whether the studio can be taxed on licensing and merchandising revenues, the city attorney's office said on Dec. 10.

LOS ANGELES (Reuters) -- The city of Los Angeles has sued Paramount Pictures Corp. over whether the studio can be taxed on licensing and merchandising revenues, the city attorney's office said on Dec. 10.

The movie studio, owned by Viacom Inc., has been in talks with the city over $632,000 in 2001 taxes and interest. The Superior Court suit was filed on Dec. 9 to avoid expiration of the statute of limitations on the claim, City Attorney spokesman Frank Mateljan said.

Paramount could not immediately be reached for comment.

Mateljan said the city expects to dismiss the lawsuit "once the finer points of what needs to be taxed" are settled.

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