New Watchmen trial tidbits

The LA Times, which has been providing much of the coverage on dispute between Warner Bros. and 20th Century Fox over the distribution rights to The Watchmen, reported today that Producer Larry Gordon could ultimately be the biggest loser.

While none of the lawyers involved in the case are talking, the LA Times today quoted several sources about possible settlement deals:

Among the possible settlement terms under discussion is a deal in which Fox could end up with as much as 8.5% of "Watchmen's" gross receipts, according to a person familiar with the negotiations.

I've been saying for awhile that the most likely outcome would be some kind of settlement between the two studios in which Fox gets a cut of the receipts. It just will come down to Fox finding a bite small enough for Warner Bros. to find palatable.

What's interesting in today's LA Times article is the suggestion that WB may go after Gordon himself for at least part of their lost revenue, and he would in turn look at his insurance company:

It is unclear whether Gordon has initiated an insurance claim against the law firm that negotiated his "Watchmen" deal with Warner Bros., but Gordon has said in a letter that the same lawyers may have made "a unilateral mistake" as part of an earlier deal involving the film's rights.

...

Fox sued Warner Bros. in February, arguing that Fox controlled the film's distribution rights because of two "Watchmen" deals it made with Gordon in 1991 and 1994. The pacts, Fox maintained, obligated any "Watchmen" producer other than Fox, including Gordon, to notify Fox and obtain its rights before making a film.

It's quickly becoming apparent that the blame game is in full effect. Warner Bros. seems to be positioning itself to set up Gordon as the fall guy, saying that they were misinformed by Gordon's laywers. Gordon, on the other hand, is saying that the error was either a "mutual" error between himself and Fox, or a error on the part of his attorneys.

In a court filing dated Dec. 8, Warner Bros. said it "never received the very documents upon which Fox asserts its claims" until a year after they supposedly received the rights from Gordon. Warner Bros. also said Gordon's attorneys never alerted the studio they should contact Fox about the rights.

According to today's article, Gordon sent a letter to the judge--which was returned unread--stating the problem was either "a mutual mistake by both parties [Fox and Gordon], or a unilateral mistake made by his counsel, on which Mr. Gordon relied."

Meanwhile, everyone on the sidelines have to wait to see if the lawyers can save the day. Comforting thought, indeed.