Judge Won’t Dismiss Fox’s Watchmen Lawsuit

Earlier this year, 20th Century Fox filed a copy infringement and breach of contract lawsuit against Warner Bros over the big screen rights of the upcoming comic book adaptation Watchmen. Fox alleged that it had the “exclusive copyright and contract rights” to “produce and develop the picture and to distribute the work throughout the world.” When the story was first reported, many wrote it off as baseless. Even I assumed that it would be thrown out of court or quickly settled for a small amount of cash. WRONG.

Not only did Judge Gary Feess of the U.S. District Court for the Central District of California deny a motion by Warner Bros to dismiss the lawsuit, but according to Nikki Finke, he appeared to conclude that “Fox could hold some of the rights to the material, even if it did not hold all rights.” Of course, his view could change over the course of litigation, but this doesn’t look good for Warner Bros.

According to the suit, Fox acquired all motion picture rights to Watchmen through a series of contracts with the author, and subsequent screenplays by Charles McKeown and Sam Hamm. This has been certified by the U.S. Copyright Office. In 1994, Fox and producer Larry Gordon entered into an agreement that would require a buy-out payment if a Watchmen movie was ever produced, in addition for profit participation of 2.5 percent of 100 percent of net profits on any motion pictures that result (this includes sequels and spin-offs such as The Black Freighter). According to the lawsuit , neither Gordon nor Warner Bros has paid Fox the buy-out amount. Warner Bros insists that they have the sole rights to the project.

So what does this mean for the future of Zack Snyder’s Watchmen?

Update: Variety says that Fox “could wind up as a profit participant in the film, and could cost Warners millions considering the film’s box office prospects. However, Fox’s legal team says it isn’t looking for monetary compensation and instead wants to prevent the big-budget film from being released altogether.”

  • fakename311
    I am not a lawyer, but I have met one at my DWI trial. And let me tell you this shit is crazy.
  • Travis Mcgee
    Fox likes to ruin good things...
  • Steelo
    Fox is hard up for cash, they'll get it any way they can.
    I bet Alan is at home asleep.
  • Aqualeo
    Alan doesn't really care
  • Captain Awesome
    Fox, you fucking douchebags.
  • Palmer
    For the last 2 years Fox really didn't have any movies that were worth a damn except for The Simpsons and (by a stretch) Live Free or Die Hard. I'm guessing they're desperate to have some big cash cow blockbuster.
  • Matt
    Fox couldn't have resolved this before post?
    "fucking douchebags"
  • joelnstuff
    Totally agree with Matt
    Seems like they waited until the film was made and started to get some serious buzz before they decided to come out with this... Poor form, Fox!
  • Gary
    Warner Bros will make some kind of deal with Fox and the movie will open on time. Watchmen will make a lot of money for the both of them.
  • max
    That would suck if it ends up that Kevin Smith was the only fucking guy to ever see the thing
  • Captain Awesome
    Sounds like Fox had the rights, gave it to another company that dissolved, then they gave it to Lawrence Gordon:

    "Fox claims that between 1986 and 1990, it acquired all movie rights to the 12-issue DC Comics series and screenplays by Charles McKeown and Sam Hamm. In 1991, Fox assigned some rights via a quitclaim to Largo International with the understanding that the studio held exclusive rights to distribute the first motion picture based on “Watchmen,” according to the lawsuit.

    When Largo dismantled, the rights were transferred to producer Lawrence Gordon. Under a “turnaround agreement” between Fox and Gordon, the producer agreed to pay a buy-out price to Fox if he entered into any agreement with another studio or third party to develop or produce “Watchmen,” among other things.

    The project apparently bounced around to Universal and Paramount before returning to Warners. Now, Fox claims that neither Gordon nor Warners has paid the buy-out price or advised the studio of any other conditions required under the agreement, including procedures necessary to acquire the rights to “Watchmen” from Fox."

    http://www.filmschoolrejects.com/news/20th-cent...

    And from Wikipedia:

    "In August 1986, producer Lawrence Gordon acquired film rights to Watchmen for 20th Century Fox. Producer Joel Silver was also working on the film. Fox asked author Alan Moore to write a screenplay based on his story. When Moore declined, the studio enlisted screenwriter Sam Hamm to pen the script. Hamm turned in his first draft on September 9, 1988. Hamm found the task of condensing Moore's 338-page, nine-panel-a-page strip into a 128-page script arduous. He took the liberty of re-writing Watchmen's complicated ending into a "more manageable" conclusion involving an assassination and a time paradox. Fox put the project into turnaround in 1991, giving part of the rights to Largo International. When Largo dismantled, producer Gordon agreed to pay-out Fox in order to set up the project with another studio."

    So basically, it seems like whether or not Gordon actually "paid-out" Fox for the rights is the issue.

    http://en.wikipedia.org/wiki/Watchmen_(film)#De...
  • Vobe
    I say Fow goes to a corner, fuck themselfes in the ass, and make this wonderful movie happen in peace.
  • Patrick
    Fucking Fox. Watch. They'll probably fucking get this movie and ruin it. They'll redo the whole thing aiming for a PG-13 release with Dodge and Mountain Dew ads all over the NYC. And it'll be set in present day. And it won't come out until 2013. At that point the world will have ended and we'll never get to see the movie. :(

    Fucking Kevin Smith...
  • Dan
    Isn't this all Larry Gordon's fault?

    This is what I understand, from what I've read:

    1. Gordon has an agreement with Fox.
    2. Gordon makes a contradictory agreement with Warner Bros.
    3. Fox sues Warner Bros.

    How is this possible?

    I think there should also be an investigation into exactly when Fox became aware that Warner Bros were making this film. If they knew about this before production began, yet waited to file a complaint until the film had started production or post-production, then they should get nothing.
  • You can't blame fox at all. Warner Bros should have settled all this before even thinking about making the movie. Now they'll have to pay the price, and that's going to be hefty and right out of their promo budget probably.
  • Captain Awesome
    Daniel,

    If Gordon said he paid them out, then he paid them out. If he didn't. That's not WB's fault. But it should have been something to have clarified.

    This doesn't add up. It's a "quit claim" so I want to hear what Gordon has in his defense.
  • wonder why everyone's angry at Fox. wouldn't you be pissed if someone said fuck you to your rights and made a film you had claim to? some of the comments are bit immature... can't wait to see this movie!!
  • Wakka wakka
    but you know what?

    Fox wait UNTIL know to sue, AFTER they filmed the movie. AFTER, not before. And this has been in development at other studios too. So no, Fox doesn't get credit, especially if they want to stop the movie being released. that's dumb.
  • Captain Awesome
    "Fox’s legal team says it isn’t looking for monetary compensation and instead wants to prevent the big-budget film from being released altogether.”

    Thats fancy legal-speak for, "We haven't decided on a monetary sum we're happy with yet."

    Anyone who thinks it's not about money is naive.
  • Wakka wakka
    But it's not like Fox, if they do win, can walk into Zach Snyder and demand a 90 minute cut with a new ending right?
  • Wakka wakka
    Devin of Chud.com has something to say and it's damn true.

    "Maybe Fox should sue for co-credit so they can get their name on a good movie in theaters for the first time since 2006 (look it up - Big Fox hasn't had a movie worth watching in almost three years)."

    http://chud.com/articles/articles/16...MEN/Page...
  • Brody
    *waits for patiently for Batman to return*
  • Adam B.
    why is everyone getting so defensive over a movie that has just as must chance to suck as it does to be great?
    sounds like all the negative comments towards Fox are from fanboys.
    obviously none of us know what happened, only Fox and Warner Bros. do.
    so who are we to judge them? it doesn't really matter what we think.
  • Goobity
    More from Wikipedia:
    "Producer Lawrence Gordon began developing the project at 20th Century Fox and Warner Bros. with producer Joel Silver and director Terry Gilliam, the latter eventually deeming the complex novel unfilmable. During the 2000s, Gordon and Lloyd Levin collaborated with Universal Studios and Paramount Pictures to produce a script by David Hayter (who set it in modern times). Darren Aronofsky and Paul Greengrass were attached to Paramount's project, before it was canceled over budget disputes. The project returned to Warner Bros., with Paramount handling international rights, where Snyder was hired to direct in 2006. Fox is now suing Gordon for failing to pay a buy-out in 1991, which enabled him to develop the film at the other studios."

    So for years this project has been floating around various studios, in various stages of development, and FOX takes issue NOW?? I find it difficult to believe that all of these 'starts' got off at all without some form of Legal green-light.
    Sounds a bit shady to me...
  • Daniel
    @ Captain Awesome

    Does it really matter what anyone says they did? Obviously the rights weren't all purchased by Warner Bros. If the rights were all transferred correctly, we wouldn't be having this discussion right now. I just don't think you can assess all the blame on Fox just for filing the lawsuit. Yes the timing isn't the best but the reason they waited this long has to do with the product Warner was turning out. They didn't want to purchase a potential money maker from not being made altogether. They wanted to see how fans liked it and how much buzzed it received. Now that it's an obvious hit prior to release with fanboys they are going to want to stake their claim in it. Because as you said in regards to the latest update: "Thats fancy legal-speak for, “We haven’t decided on a monetary sum we’re happy with yet.”

    So, you could say that Fox is being a little bitch, but they have that right. Fans shouldn't have anything to worry about, though. This probably won't affect what the final product is.
  • Captain Awesome
    Adam B.

    People have "opinions"? What the hell is this year 3000 bullshit?
  • Liz
    I just hope this doesn't interfere with the film being released. I think we can all agree on that.
  • Aaron
    ...and in a sleazy hotel Brett Ratner waits by his phone.
  • Meli
    Crazy. Fox certain did take their time and you know if they can end
    up making money on this, which is seems as if they may, I doubt
    they'll stop the film from being released. They'll end up asking for a big chunk of change.
  • A Better Class of Criminal
    I've got an Idea.

    We get a bunch of artists and writers on a deserted island... you follow me... then we create an interdimensional portal in Hollywood.... Then, we have the artists and writers come up with a movie so horrible, to terrible, so incredible rancid that Howard the Duck would be oscar worthy in it's presence... Then we transport this movie to Hollywood... Once seen it will cause thousands to lose hope in humanity and commit suicide... and then Fox and Warner brothers will be forced to reach an agreement in order to get Watchmen into theatres so it can revive the film industry!

    Who's with me!
  • 790
    This WONT effect the films release. FOX wouldnt screw WB like this.
    Trust me ,,,,

    WB could counter-sue for losses, and it would be in the Billions.
    This will be settled.
    :-)

    Stay thirsty my friends.
  • Captain Awesome
    A Better Class of Criminal,

    I'm manning the boat as we speak.
  • Goobity
    Goobity's Journal, November 21, 1985:
    What is connection with FOX and Pyramid Deliveries? Must investigate. Veidt may be involved. Hurm.
  • Jawmuncher
    All I have to say is that it sucks to get owned
  • Adam B.
    @ Captain Awesome:

    I realize people have opinions, never said that was a bad thing.
    basing them on things you know nothing about is stupid.
  • Goobity
    Goobity’s Journal, November 21, 1985: (cont)

    Watchmen movie produced by Warner Brothers. Also owns rights to Dark Knight. Supports Mask-Killer theory.
  • HooperX
    @790,

    Counter-sue for what? The fact remains that if the WB decided to go into production on a film they didn't own the rights to then Fox can't be sued for anything. The only way the WB would be able to counter-sue and win anything is if they could prove, beyond a shadow of doubt that they, along with Gordon, did in fact have all the proper rights to make the movie. It sure doesn't sound like that at the moment.

    Was it lame that Fox waited until after production had wrapped? Uh, yeah. But was it lame that Gordon and the WB went into production on a movie that one or both of them knew they didn't own the complete rights to make? Uh, yeah.
  • Rachel Summers
    @ Goobity: <3

    I am sooo pissed right now! If this turns into a re-write or a completely different re-working with all different people--I am going to march to FOX headquarters and fucking shoot the place up. This is ridiculous!!

    Way to go FOX, you fucking cuntbags.
  • A.J.
    Honestly though, even though Fox has every LEGAL right to do this (they're still fucking cockmongers) the fact that their legal team would say they want to keep the film from being released at all instead of something like "we are pursuing an arrangement that compensates all wronged parties" is just.... like the pinnacle of douchebaggery. This combined with the fact their recent movies have sucked leads one to believe they just honestly hate film as an art form now. Also, it's worth noting that, Alan Moore, if he knows about the current situation, might actually be pleased with the idea that this film might not see release.
  • 790
    The film Zodiac,,,
    Makes CSI , anytown
    Look like "The Jeffersons".

    Zodiac really should have won some Oscars !!!!!

    Fu
  • 790
    Hooper X, your open mouthed on bent knees attitude makes me laugh. Do you believe every story on the net,,,
    Warner Bros has a slew of lawyers that do nothing but secure the rights to films. If you believe this story you are firmly grounded in a state of hype and internet gossip.
    WB has secured the rights, FOX is PISSING in the wind. (If even a real story)
    Get real, :-/
  • K_Mon
    i'm not sure i understand what Fox are doing here, yeah it could all be for the a part of the profit percentage in the end but they were ridiculously lazy with the project if indeed the rights were with them. They didn't take legal action Paramount when they were making the film and Paramount were deep into pre-production with Paul Greengrass and made no noises about it being their property. In the end i think it'll be for the money but Fox continually disappoint with their films, i hope at least that Warner Bros wins as i wouldn't want to see this at Fox whatsoever
  • Hope Persen
    @Goobity

    I'll take the tiller while you row.

    If Fox screws this movie up, I vote we all start sending them bleeding happyface buttons.

    Where is the Comedian when you need him? Fox would bow down before that pornstache and a flamethrower.
  • Tobi
    This seems like something they should have before the movie went into production...and not something to do once the movie is nearly totally complete (or totally complete?). I'm a huge fan of Watchmen, and have even cosplayed Rorschach at conventions...and if Fox stops this movie from coming out, or does something to ruin if...I'm going to be really really pissed. May possibly boycott all Fox movies for the remainder of my life...
  • BA
    Fox, you already took Arrested Development - not Watchmen too --leave us alone
  • Joe
    @ A.J.

    My first thought upon reading this was actually that Alan Moore put them up to this. It wouldn't surprise me in the least that he would go out of his way to make sure that this never see the darkened interior of movie theaters across the country.
  • Go Goya
    790 said,

    "This WONT effect the films release. FOX wouldnt screw WB like this.
    Trust me ,,,,

    WB could counter-sue for losses, and it would be in the Billions.
    This will be settled.
    :-)

    Stay thirsty my friends."

    That's got to be one of the most absurd things anyone has ever said. You're clearly just too excited about this movie to think logically (as evidenced by your later commenting).

    WB couldn't counter-sue for loss if they're forced to pay Fox because they had unjustly acquired the rights in the first place. No, I don't believe every story I read on the internet, but I also don't believe every fool who spews crap when they clearly know nothing about intellectual property law.

    It's very tempting to jump down Fox's throat because of how much people want to see the movie, but Fox is looking out for it's own interest here.

    What you said makes less than little sense. If I cause you injury and am orderd by a court to pay you, I didn't lose anything in the eyes of the law I simply made you whole.

    There are also rules surrounding the timely filing of a claim by a party in an IP case. So to everyone saying that this is bogus because Fox waited until after the movie had been made...clearly the judge and the law disagree with you or the claim would've been dismissed for being untimely filed. Simmer down.
  • Matt
    I bow to all the great Watchmen references here.
  • 790
    I really think most ppl here are getting worried over this for nothing, FOX isnt going to stop this film.
    No friggen way. This kind of crap happens all the time.

    WB has secured the rights.
    This is all a technicality.
  • '790'? More like 'Agent 790'.

    "WB has secured the rights.
    This is all a technicality." Conjures up images of a man with a feckin' huge gun bursting into your house, and saying something like "your family are already dead". Grim.

    Anyhoo, as a few people have said, sounds like this is all Larry Gordon's fault. Or the usual "someone forgot to fill this form in - shit" mess that happens in this kind of situation.

    But to be honest you lot are gonna go see it no matter who's "presenting" it, so why get in such a tizz? The film's made, the hype is (clearly, by the looks of it) here, it makes no business sense for this film NOT to come out. Hang onto your pants, people, EVERYTHING'S GONNA BE OK!
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