Watchmen Case Isn't Settled

"Watchmen" was a pretty sweet movie but didn't perform as well as it could have in theaters. But the lawsuit insanity behind the film, which was between propert rights for which studio owned it, isn't over. Fox won the battle and the big question now is who will pay up?

According to The Hollywood Reporter, "Warner Bros. and producer Larry Gordon have set a date to figure out who's responsible for the legal fracas that led to Fox owning a piece of 'Watchmen.' But given the pic's lackluster boxoffice performance, there might not be much loot to fight over.

Attorneys for the two sides have agreed to meet May 13 in a confidential, nonbinding mediation before showbiz mediator Daniel Weinstein. At issue is how much, if anything, Gordon owes Warners after a judge ruled that Fox -- which initially developed the property with Gordon -- owned a distribution right to the superhero pic.

Heated chain-of-title litigation between Fox and Warners ended in a January settlement that gave Fox a cash payment and up to 8.5% of the film's proceeds, depending on how well it did. The $138 million-budgeted pic has grossed $180 million worldwide after a heavy marketing campaign.

While Warners certainly isn't celebrating the weak boxoffice haul, one bright spot is that the studio likely will owe Fox only about 5% of the film's proceeds, according to multiple sources familiar with the settlement."



Will Gordon wind up having to pay the money to Fox or will it Jake Bloom's law firm which is at fault for not recognizing a 1991 agreement on which Fox based its lawsuit.

"The Bloom firm is said to have a $15 million insurance policy that both Warners and Gordon likely will seek to tap for the settlement. Given the film's performance -- and the fact that sequels and derivative works are likely dead -- that amount could cover everything that will be owed to Fox. Some believe, however, that a global settlement will require Warners, Gordon and his attorneys all to contribute."

Seeing as how I am interested in getting involved with entertainment law, this is some serious business that I should be paying attention to.
But who is at fault? Who should pay? The movie is already out so why should we care?

More news to come! Catch ya' later!