Details on the Watchmen Lawsuit from NY Times
Hollywood Newsroom is now Buzz Newsroom! Visit and bookmark our new site. Buzz is bigger and better, including sports, world news, gadgets and the entertainment news that you're used to. Same staff, just more stuff! Why Fark, Drudge and Huffington when you can Buzz!?How could this happen? The question springs to mind as 20th Century Fox claims it has the rights to the graphic novel on which Warner Brothers is basing “Watchmen,” its giant superhero movie.
Peer deeper into the murk of Hollywood’s business practices, though, and the question becomes: How could it not?
The film industry was buzzing last week after a federal judge here allowed Fox to proceed with a lawsuit contending that Warner had filmed “Watchmen” without bothering to acquire rights that Fox says it has owned for 22 years. This eagerly anticipated movie is directed by Zack Snyder, of “300” fame, and is based on the illustrated series (republished as a graphic novel) by Alan Moore and David Gibbons.
Warner, of course, begs to differ with Fox. So the studios are squared off for battle. Fox wants an injunction blocking the movie’s planned release on March 6. Warner wants Fox to go away.
Studios have certainly fought like this in the past. Metro-Goldwyn-Mayer and Sony Pictures Entertainment, for instance, swapped lawsuits a decade ago over Sony’s plan to make a series of James Bond films to rival MGM’s. MGM won, more or less, after Sony settled and dropped its films. But Sony soon wound up distributing a Bond movie, the highly successful “Casino Royale,” as it became financially involved with a reorganized MGM.
That battle grew from a decades-old fight between the filmmaker Kevin McClory and the author Ian Fleming over the rights to “Thunderball” (Mr. McClory had contributed to the screenplay).
The Fox-Warner tiff turns on matters potentially more nettlesome to the industry at large. Central to Fox’s complaint is the mysterious matter of what is called turnaround.
On its face, turnaround is a contractual mechanism that allows a studio to release its interest in a dormant film project, while recovering costs, plus interest, from any rival that eventually adopts the project. But turnaround is a stacked deck.
The turnaround clauses in a typical contract are also insurance for studio executives who do not want to be humiliated by a competitor who makes a hit out of their castoffs.
That trick turns on a term of art: “changed elements.” A producer of a movie acquired in turnaround who comes up with a new director, or star, or story line, or even a reduction in budget, must give the original studio another shot at making the movie because of changed elements, even if a new backer has entered the picture.
Thus, “Michael Clayton” was put in turnaround by Castle Rock Entertainment (which, like Warner, belongs to Time Warner). When George Clooney became attached to star in it, however, Castle Rock stood on its right to be involved as a producer of what turned out to be an Oscar-nominated film.
Fox, in its complaint filed in February with the United States District Court for the Central District of California, contended, among other things, that Lawrence Gordon, a producer of “Watchmen,” was given a somewhat unusual perpetual turnaround right under an agreement reached in 1994. Such rights are conventionally given for a finite period, but Mr. Gordon, as a powerful producer who was once a Fox studio chief, may have had an edge.
According to the court filings, Fox had declared its willingness to part with the project under certain terms in 1991. In any case, Fox says, Mr. Gordon was supposed to resubmit “Watchmen” to Fox every time he came up with a changed element.
- from NYTimes