The agency will work on a brand refresh, which will seek to reposition the US comedy station as Britain's specialist comedy channel.
The agency will also produce print, TV and outdoor communications promoting its schedule of programming for 2008 across Paramount 1 and Paramount 2, which broadcast popular US comedy programmes such as Frasier, Scrubs and South Park.
The channel's last retained relationship was with Farm. It has also worked with Brothers and Sisters, which produced its ad push for the US sitcom Two and a Half Men.
Chris Hancox, the vice-president of creative services and marketing at Paramount Comedy, said: "I was incredibly impressed with Karmarama's ideas and look forward to working with it on Paramount's latest refresh."