Watchmen Legal Battle: Fox vs. Warner Bros. Part II

 Comics2Film reports:

On the heels of Nikki Finke’s scoop that the 20th Century Fox vs Warner BrosWatchmen‘ battle would continue, comes a report from Variety that reveals the situation for the film may be more dire than what we reported yesterday.

To recap: on Friday U.S. District Court Judge Gary Allen Feess found that Fox’s assertion (that it holds some claim on the film rights of the graphic novel) is valid and refused to throw the claim out of court. This paves the way for Fox to seek an injunction against Warner Bros preventing the release of the film, which is planned for March 2009.

We speculated that Fox was likely seeking a settlement and the ruling and subsequent court proceedings would give them leverage over Warner Bros, who is beyond the point of no return with the film.

However, Variety’s report says that Fox may not be willing to settle and may aggressively persue that injunction.

Fox issued a statement that reads:

Warner Bros.’ production and anticipated release of ‘The Watchmen’ motion picture violates 20th Century Fox’s long-standing motion picture rights in ‘The Watchmen’ [sic] property.

We will be asking the court to enforce Fox’s copyright interests in ‘The Watchmen’ [sic] and enjoin the release of the Warner Bros. film and any related ‘Watchmen’ media that violate our copyright interests in that property.

In addition, Variety also cites an unnamed source “close to the litigation” who claims that Fox, who invested a reported $1 million in the project, will not be settling the case.

“When you have copyright infringement, there are some damages you never recover,” said the source.

It’s hard to believe that the ‘Watchmen’ movie and its spin-off movies (the ‘Black Freighter’ animated film and the ‘Under The Hood’ faux documentary, not to mention the currently released “motion comic”) will be put on mothballs. Today that seems like a possible outcome.

See Variety’s article here.

Watchmen Legal Battle: Fox vs. Warner Bros.

The Hollywood Reporter reports:

Warner Bros. is scheduled to release Zack Snyder‘s big-screen adaptation of the Alan Moore/Dave Gibbons comics series on March 6, but a federal judge in Los Angeles complicated that plan Wednesday when he refused to dismiss a lawsuit filed by 20th Century Fox against Warners over rights to the property.

Judge Gary Allen Fees ruled that Fox has established enough evidence to support its claims that it holds the distribution rights to the film version of the 1980s graphic novel about damaged superheroes.

Asserting what it calls its “long-standing motion picture rights” to “Watchmen,” Fox said Monday that it will ask the court to “enjoin the release of the Warner Brothers film and any related ‘Watchmen’ media that violate our copyright interests in that property.”

Warners has high hopes for “Watchmen,” a potential franchise film that has a reported $120 million budget. The studio does not want to mess with success — it released Snyder’s previous big-screen effort, “300,” in March 2006, and that action movie went on to gross more than $450 million worldwide.

Warners counters that Fox has no rights to the project.

“The court’s ruling simply means that the parties will engage in discovery and proceed with the litigation,” it said. “The judge did not opine at all on the merits, other than to conclude that Fox satisfied the pleading requirements.”

Fox has sued Warners for copyright infringement and interference with its contract rights under a 1991 agreement between Fox and Largo Entertainment producer Larry Gordon.

Under that deal, Fox “quit claimed” its rights in “Watchmen” to Largo, with the understanding that if the production company proceeded with a big-screen version of the comic, then the movie would be distributed by Fox.

In 1994, Gordon negotiated with Fox “a turnaround notice” that established a buyout formula for the studio if he elected to acquire Fox’s rights. But according to Fox, Gordon failed to follow the 1994 agreement.

In 2006, Warners negotiated a quit-claim contract with Gordon, under which it claims to have acquired the rights to “Watchmen.”

Fox contends that it has retained its rights to the project because Gordon failed to buy out the studio’s rights. It further claims that Warners turned a blind eye to Fox’s rights. Warners, however, says under the 1994 agreement, Fox gave away all of its rights, including those to distribute.

Judge Fees disagreed, finding that Warners’ motion to dismiss ignored several facts, including that the turnaround notice separately dealt with “Watchmen” and that there is nothing in the court record that shows Gordon has an interest in the project.

 

Thanks to ComicBookMovie.com for this article.

Workers’ Comp Sucks

It sucks. It sucks. It sucks.  It sucks for injured workers and for businesses.  I am sick and tired of handling workers’ comp cases.  There is nothing redeeming about the workers’ compensation system.  At least not in Nebraska or Iowa.  I challenge anyone to convince me otherwise.