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A federal judge in Colorado has awarded Disney $239,941 in attorney fees in one of its legal battles with Stan Lee Media over the rights to the Marvel characters co-created by Stan Lee — half of what the entertainment giant was seeking.
Law360 reports that U.S. District Judge William J. Martinez on Thursday admonished Disney’s attorneys for requesting $461,882, which he found “grossly excessive,” while also maintaining that Stan Lee Media was unreasonable in its pursuit of copyright claims after three other courts already determined there was no legal basis for the suit.
“It shocks the court’s conscience that defendants would bill almost half a million dollars, or 900 hours, on a case with minimal discovery that was resolved on a motion to dismiss,” the judge wrote.
It was Martinez who in September granted Disney’s motion, dismissing Stan Lee Media’s 2012 copyright-infringement lawsuit and saying it would be “futile” to permit the failed dot-com — which has had no connection to its co-founder and namesake for more than a decade — to amend its claim.
Filed in federal court in Philadelphia, and first reported by Deadline, Disney’s reply is the latest volley in what began last summer as a relatively straightforward lawsuit against the Lancaster, Pennsylvania-based American Music Theatre, which was accused of using unlicensed elements from Spider-Man, Mary Poppins and The Lion King.
However, as the media giant’s attorneys later noted, that “simple case” was “transmogrified” with the surprising assertion that the theater had licensed Spider-Man … from Stan Lee Media, which was named in a third-party counterclaim (it should be noted the license was obtained after Disney filed suit).
The failed dot-com, which hasn’t been connected to its co-founder and namesake in more than a decade, in turn sued Disney on Feb. 7, seeking a jury trial regarding ownership of Spider-Man, and, presumably, other characters co-created by Stan Lee. Disney responded with a motion to dismiss, which was of course opposed by SLMI; the company maintains none of the previous court cases has directly addressed ownership of the characters.
Legal | Those wondering how Stan Lee Media can possibly afford its long, and so far entirely unsuccessful, legal battle with Marvel and Disney may want to read this brief Wall Street Journal article about “litigation finance” — which it characterizes as the growing practice of investing in lawsuits. However, pointing to the fight over the rights to Spider-Man and other characters, writer Rob Copeland points out there are high risks: namely, that investors could never see financial return. As we’ve noted before, Stan Lee Media’s efforts are backed by a group of investors that includes the $21 billion hedge fund Elliott Management, which helps to explain why the lawsuits keep coming. [MoneyBeat]
In documents filed Tuesday in federal court in Philadelphia, the failed dot-com again argued that none of the previous cases over the past decade — and there have been many — has directly addressed the merits of its ownership claims. “No judge has decided that Disney actually owns the Spider‐Man copyrights or, for that matter, that SLMI does not own the copyrights,” the papers state. “[...] That issue has never been decided, and Disney has now placed it directly before the court in this case.”
“This case” is a copyright- and trademark-infringement involving the use of elements from Spider-Man, Mary Poppins and The Lion King in a musical revue staged by the Lancaster, Pennsylvania-based American Music Theatre. What Disney’s lawyers thought would be “a simple case” took an unexpected turn in November when the theater responded that it had licensed Spider-Man, from Stan Lee Media, which was named in a third-party counterclaim (the license was obtained after Disney filed suit). That opened the door for the company, which no longer has a connection to Stan Lee, to sue Disney, seeking a jury trial regarding ownership of Spider-Man, and, presumably, the other Marvel characters it’s sought since emerging from bankruptcy in 2006.
After being pursued in court over the past seven years by Stan Lee Media, Marvel and its corporate parent Disney have had enough: On Valentine’s Day, the companies asked a federal judge to put a stop to the failed dot-com’s dogged claims of ownership of Spider-Man, the Avengers, the X-Men and other lucrative characters.
Filed Friday in federal court in Philadelphia, and first reported by Hollywood, Esq., the motion to dismiss comes as part of what began in September as a seemingly straightforward copyright- and trademark-infringement lawsuit involving the use of elements from Spider-Man, Mary Poppins and The Lion King in a musical revue staged by the Lancaster, Pennsylvania-based American Music Theatre.
However, as Disney states in its filing, that “simple case” was “transmogrified” with the surprising assertion in November from the theater that it had licensed Spider-Man … from Stan Lee Media, which was named in a third-party counterclaim (it should be noted the license was obtained after Disney filed suit). That conveniently opened the door for the company, which no longer has a connection to its co-founder and namesake, to sue Disney on Feb. 7, seeking a jury trial regarding ownership of Spider-Man, and, presumably, other characters co-created by Stan Lee.
Continuing its long, and so far wholly unsuccessful, fight for ownership of many of Marvel’s best-known characters, the tenacious Stan Lee Media has sued a Walt Disney Co. subsidiary, seeking to join a dispute about licensing Spider-Man for the stage.
In September, Disney Enterprises, Marvel and Cameron Mackintosh Ltd. sued Lancaster, Pennsylvania-based American Music Theatre, saying it violated copyrights and trademarks by using elements of Spider-Man, Mary Poppins and The Lion King in its musical revue Broadway: Now and Forever (Disney and Mackintosh jointly hold the copyright to the Mary Poppins stage production). The theater responded in November with the surprising claim that Disney doesn’t own Spider-Man. Instead, the counterclaim stated, the character belongs to Stan Lee Media, which licensed the rights to the American Music Theatre.
Say what you will about the shareholders of Stan Lee Media, but despite suffering one loss after another in their decade-long battle for the rights to Marvel’s best-known characters, they’re still unwilling to concede defeat.
In papers filed Tuesday in federal court in Philadelphia, and first reported by Deadline, the failed dot-com now seeks a declaratory judgment that it, and not Disney or Marvel, owns Spider-Man, Iron Man, the X-Men, Thor and other superheroes.
The move, which comes just three months after an annoyed federal judge dismissed their multibillion-dollar claim against Disney, springs from a lawsuit filed in September by the media giant against the American Music Theatre, which is accused of using elements of Spider-Man, Mary Poppins and The Lion King in a stage revue without permission. In a surprise twist, the Lancaster, Pennsylvania-based theater responded last month that it has a license to use Spider-Man and numerous other Marvel heroes — through an exclusive agreement with Stan Lee Media. Somewhat conveniently, American Music Theatre filed a third-party counterclaim against Stan Lee Media, opening the door for Tuesday’s filing.
No matter how hard they try, Disney and Marvel can’t seem to shake the specter of Stan Lee Media: Just two months after a federal judge dismissed a multibillion lawsuit against Disney for ownership of the Marvel characters co-created by Stan Lee, the failed dot-com has emerged in another, seemingly unrelated dispute.
In September, Disney, Marvel and Cameron Mackintosh Ltd. sued Lancaster, Pennsylvania-bases American Music Theatre, saying it violated copyrights and trademarks by using elements of Spider-Man, Mary Poppins and The Lion King in its musical revue Broadway: Now and Forever (Disney and Mackintosh jointly hold the copyright to the Mary Poppins stage production).
On Monday the theater responded with an eye-opening claim of its own: that Disney doesn’t own Spider-Man. Instead, the counterclaim states, the character belongs to Stan Lee Media, which licensed the rights to the American Music Theatre.
Deadline reports that more than two years after the failed dot-com sued Paradox Entertainment in a bid to reclaim the rights to Robert E. Howard’s most famous character, the Ninth Circuit Court of Appeals has effectively delivered the deathblow to SLM’s case, upholding a lower court’s 2012 dismissal. Of course, we’ve learned by now that the company isn’t one to give up a legal fight.
Stan Lee Media, which hasn’t had a connection to its co-founder and namesake in more than a decade — in fact, it has sued Stan Lee on a few occasions — purchased the rights to the Conan characters in 2000, shortly before it entered federal bankruptcy protection. The company claimed its interests weren’t properly represented, nor were shareholders notified, when in 2002 Conan Sales Co. bought back the rights. The complaint also alleged that the late Arthur Lieberman, Stan Lee’s longtime attorney, committed fraud during the proceedings, and failed to report conflicts of interest. Therefore, SLM argued, the subsequent sale of the characters to Paradox Entertainment should be annulled.
Welcome to “Report Card,” our week-in-review feature. If “Cheat Sheet” is your guide to the week ahead, “Report Card” is typically a look back at the top news stories of the previous week, as well as a look at the Robot 6 team’s favorite comics that we read.
So find out what we thought about Waluk, Superior Spider-Man and more.
A federal judge on Thursday dismissed Stan Lee Media’s multibillion-dollar lawsuit against Disney, potentially ending its long and confusing legal battle to claim ownership of the Marvel characters co-created by Stan Lee. The failed dot-com has had no connection to its co-founder and namesake in more than a decade; in fact, the two have sued each other on a few occasions.
As Deadline reports, in granting Disney’s motion to dismiss the 2012 copyright-infringement complaint, U.S. District Judge William J. Martinez didn’t attempt to hide his annoyance with the litigious Stan Lee Media, whose tangled web of lawsuits began it at least 2007, just months after the company emerged from federal bankruptcy protection.
“Plaintiff has tried time and again to claim ownership of those copyrights; the litigation history arising out of the 1998 Agreement stretches over more than a decade and at least six courts,” Martinez wrote in his 11-page order. “Taking its cue from the Southern District of New York and the Central District of California, this Court holds that Plaintiff is precluded from re-litigating the issue of its ownership of copyrights based on the 1998 Agreement …” He said it would be “futile” to permit Stan Lee Media to amend the lawsuit.
Legal | A federal judge on Friday denied DC Comics’ bid for sanctions against the attorney for the heirs of Superman creators Jerry Siegel and Joe Shuster, finding that Marc Toberoff made “no deliberate attempt to mislead” during the discovery process and, perhaps more importantly, did not interfere with the publisher’s rights to the Man of Steel when he allegedly inserted himself into settlement talks in 2001. [The Hollywood Reporter]
Legal | Stan Lee will be deposed this week by lawyers representing Stan Lee Media in its multi-billion-dollar lawsuit against Disney involving the rights to the characters the legendary writer co-created for Marvel. Stan Lee Media, which no longer has ties to its namesake, claims Disney as infringed on the copyrights Iron Man, the Avengers, X-Men and other heroes since 2009, when it purchased Marvel. The long, tortured dispute dates back to a sequence of events that occurred between August 1998, when Marvel used its bankruptcy proceedings to terminate Lee’s lifetime contract, and November 1998, when Lee entered into a new agreement with the House of Ideas and signed over his likeness, and any claims to the characters. Stan Lee Media has long claimed that on Oct. 15, 1998, Lee transferred to that company the rights to his creations and his likeness. SLM asserts in the latest lawsuit that neither Marvel nor Disney, which bought the comic company in 2009, has ever registered Lee’s November 1998 agreement with the U.S. Copyright Office. [The Hollywood Reporter]
Legal | Forbes profiles Michael Wolk, a lawyer who’s organized the financial backing for Stan Lee Media’s prolonged, and so far unsuccessful, multibillion-dollar lawsuits against Marvel and Disney over the rights to the characters co-created by Stan Lee. Wolk’s primary investor is Elliott Management, one the nation’s largest hedge funds. SLM, which is no longer affiliated with its co-founder and namesake, asserts Lee didn’t properly assign ownership of the works to Marvel, and that Disney didn’t file its Marvel agreement with the U.S. Copyright Office. “We are in the right here,” says Wolk, who’s not actually a Stan Lee Media shareholder. “No court has ever addressed or ever decided who is the owner of the characters — all of the prior litigation got dismissed for reasons that have nothing to do with who owns the characters.” [Forbes.com, via The Beat]
Legal | Disney has filed a motion to dismiss a $5.5 billion copyright-infringement lawsuit filed in October by failed dot-com Stan Lee Media Inc. in its sixth attempt to claim ownership of the Marvel characters co-created by Stan Lee. SLM, which is no longer affiliated with its co-founder and namesake, asserts Lee didn’t properly assign ownership of the works to Marvel, and that Disney didn’t file its Marvel agreement with the U.S. Copyright Office. Disney calls the lawsuit “completely frivolous,” and argues, in part, that the claims have already been litigated and rejected. [The Hollywood Reporter]
Publishing | As final print edition of The Dandy promptly sells out and the venerable U.K. children’s comic migrates online, David Fickling briefly discusses why he launched The Phoenix — a weekly geared for readers ages 6 to 12 — nearly a year ago, and why comics aren’t dead: “Reading comics was always a delight. Reading them under the bedclothes or the desk, even better. Now at last the experts are understanding the importance of reading comics. The loss of reading for pleasure has been identified as one of the principle reasons for falling standards of literacy. Perhaps part of the reason for our disgraceful literacy rates is that we don’t have comics. Comics are a link to books not competition; in short they are a great leveller.” [The Telegraph]
Undeterred by numerous legal setbacks, failed dot-com Stan Lee Media on Tuesday filed a $5.5 billion copyright-infringement lawsuit against Disney, claiming the entertainment giant doesn’t actually own the Marvel characters featured in such blockbuster films as The Avengers, X-Men: First Class and Thor, and the Broadway musical Spider-Man: Turn Off the Dark. The dollar amount reflects the estimated revenue from box-office receipts, licensing and merchandising dating back three years, the statute of limitations for copyright infringement.
The complaint, filed in federal court in Colorado and first reported by Deadline, has its roots in Marvel’s 1998 bankruptcy, when CEO Isaac Perlmutter ended the $1 million-a-year lifetime contract with Stan Lee, negating the legendary writer’s assignment to the company of his rights to his co-creations. It also freed Lee to form Stan Lee Entertainment, which later merged with Stan Lee Media, with infamous entrepreneur Peter F. Paul. That company in turned filed for bankruptcy in February 2001; just four months after SLM emerged from protection in November 2006, shareholders filed a $5 billion lawsuit against Marvel. Stan Lee Media has had no connection to its co-founder and namesake in more than a decade; in fact, the two have sued each other on a few occasions.