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Stan Lee Media loses fight for Conan the Barbarian rights

A federal judge has dismissed a bid by Stan Lee Media Inc. to reclaim the rights to Conan the Barbarian, which the failed dot-com briefly held before going into bankruptcy in 2001. However, a bigger legal brawl still lies ahead, when the company appears before the 2nd Circuit Court of Appeals on March 8 to argue it should be allowed to pursue the rights to Spider-Man, the Fantastic Four, The Avengers and other lucrative Marvel properties.

Stan Lee Media, which operates independently of its namesake and co-founder — in fact, it’s suing Stan Lee — has struggled since emerging from bankruptcy in November 2006 to regain some of the money and glory from the heyday of the Internet bubble, primarily through lawsuits claiming the improper transfer of intellectual properties.

In the Conan lawsuit, filed in August even as Conan the Barbarian 3D arrived in theaters, the company claimed, in part, that when Conan Sales Co. bought back the rights to the Robert E. Howard characters in 2002, shareholders weren’t notified, and SLM’s interests weren’t properly represented. The complaint also alleged that Arthur Lieberman, Lee’s longtime attorney, committed fraud during the proceedings, and failed to report conflicts of interest. As a result, SLM argued, the transfer of the rights to Conan Sales Co., which subsequently sold them to Paradox Entertainment, should be annulled.

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