Dpp1978
Posts: 1012
Joined: 2/4/2006
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This thread has everything. Right wing conspiricies, corporate greed, an occasional piece of cogent analysis muddled in with idealistic musings. It's nothing if not entertaining. There are no good guys in this scenario. I read the court documents from the first trial in August and have been following this mess since before then. Fox bought the rights (from DC which is ironically owned by Time Warner) to Watchmen in the late 80's. Work started by Larry Gordon's production company ( which was then under an exclusive contract with Fox). The budget required was obscene and the production stalled. In 1991 Gordon's contract was ended by mutual agreement. As part of the severence he was allowed to take a few titles including Watchmen, but only under certain conditions, primary of which was that Fox retained distribution rights should in future it go into production. This was framed in the usual opaque language lawyers love so much. Of course this means everything depends on the interpretation of the document. One interpretation is that the agreement was merely an option to acquire the rights in the future (ie first dibs to Gordon to buy them if he chose to). If that is the case, as Gordon never took up the option Fox will still own all the rights. Another interpretation is that Fox gave Gordon all the rights, but retained the right to distribute. If that is the case Fox still has the right of first refusal. Warner's view was that Gordon got all the rights, but I cannot see for the life of me how that can be. It appears neither can the Judge. The document containing the above agreement was the one Warner claimed to derive its rights to Watchmen from. To add another layyer of confusion in 1994 a separate agreement was undertaken between Fox and Gordon, containing further conditions Gordon must comply with to exercise his option. . This document reads even worse from Warner's position as it gave Fox the right to reassess its position every time an element changed, and opt to finance the project internally. A new director comes on board; Fox gets first right of refusal. A new script treatment; Fox gets first right of refusal. And so on it goes. Of course they retained the right to distribute from before. Warner claimed ignorance of this. However due dilligence dictates that when someone purports to sell something the purchaser should bloody well make sure the seller has the right to sell it. If they don't they will still be bound by any pre existing rights, and any rights they obtain can be usurped. This is the crux of the Caveat Emptor ("let the buyer beware") doctrine, and only in very specific conditions will this be undermined The first step in any investigation is to trace the chain of ownership to a good root of title. Here the original 80's Fox acquisition is absolutely certain, everything after is questionable. Warner should have at least asked Fox what rights it claimed at this point; it appears it didn't. If Fox had refused to play ball at this point it would look very bad for it later if they tried to rely on the document. Later when Fox sent notice of its purported rights this should have set alarm bells ringing, but all they did was sent an incredibly patronising letter back to Fox and carried on their merry way. All of this occurred before Fox went to court in mid February. to claim they sat back and waited until Warner had reached post production is not only wrong it would be legally stupid. If you sit on something in such a way as to unreasonably inflate the claim you are liable to have this used against you. Then awards will be reduced and in extremem cases the entire claim can be struck out. Fox then had no choice but to issue proceedings. If they didn't they would not be looking out for the company's best interests, and the shareholders would be able to file suit against them. Warner really should have seen this all coming, especially seeing as the lawyers they employ charge enormous fees, and are supposed to be among the best. It's possible they did and took an educated risk that the potential profits outweighed any expense incurred by continuing. That isn't to say Fox is without blame; and they certainly can't claim to be the good guys. They didn't pursue the issue any of the myriad times it almost got off the ground before; at least as far as we know. This very issue may have directly contributed to the project's previous collapses. It also does smell a little greedy from the outside. Fox certainly has done little to appear to be anything other than a greedy manipulative entity over the last few years. But to label them the bad guys in this situation is just wrong. The worst part of this whole mess is that Larry Gordon would probably have been within his rights to exercise his option at any time up to the point where production started. This would have likely cost less than a couple of million dollars and would have averted this whole mess. Now the legal costs alone are likely to be more than that. Warner's moral position here is in no way better than Fox's. Fox is merely asserting the rights it bought and paid for, and claims to still have. DC which is part of the same parent compay as Warner has been at odds with Alan Moore since the 80's over Watchmen, and in particular with respect to his rights to royalties. DC is certainly no stranger to rights issues; they recently lost a case against the heirs of the creators of Superman. Whatever happens from here it seems that Fox has a very strong position from which to negotiate. If they do get the injunction they seek, and the judge here has granted them before in similar cases, Warner will be forced to settle. Everything we are reading from both sides at the moment is posturing, and while it isn't impossible that this will be resolved soon, I won't be holding my breath. I hope I'm proven wrong on this.
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