Marvel Sues Disney Over Comic Royalties
By GARY GENTILE
Fri Jul 16, 7:50 PM ET
LOS ANGELES, CA (Associated Press) -- Marvel Enterprises Inc., creators of such comic book superheroes as "Spider-Man" and "The Incredible Hulk" is suing The Walt Disney Co. in a royalty dispute over animation programs aired on Disney's ABC Family channel.
Marvel is asking for nearly $55 million in compensatory damages, interest and other fees it says it is owed for royalties generated by made-for-television episodes of "Spider-Man," "X-Men" and "The Incredible Hulk."
The agreements at issue in the lawsuit, filed late Thursday in Los Angeles County Superior Court, were made before Disney acquired Fox Family Worldwide in 2001. The lawsuit claims Disney has not kept accurate records of royalties due under those inherited agreements.
Disney spokesman John Spelich said the company had not yet seen the lawsuit and could not comment.
Episodes of all three shows were made in the late 1990s and Disney inherited the right to air them and sell the shows on home video and into foreign markets, the lawsuit claims.
Marvel claims it is owed millions of dollars in royalties, including from the licensing of music associated with the shows.
It also claims Disney failed to aggressively market the shows, especially in light of the popularity the three titles have gained from the successful theatrical movies made by other studios.
"Indeed, although Disney is the heir to these important rights, it has treated these profitable properties as second rate," the lawsuit states.
The lawsuit, which claims $54.8 million in total damages, does acknowledge that Disney did pay some disputed royalties when asked.
By GARY GENTILE
Fri Jul 16, 7:50 PM ET
LOS ANGELES, CA (Associated Press) -- Marvel Enterprises Inc., creators of such comic book superheroes as "Spider-Man" and "The Incredible Hulk" is suing The Walt Disney Co. in a royalty dispute over animation programs aired on Disney's ABC Family channel.
Marvel is asking for nearly $55 million in compensatory damages, interest and other fees it says it is owed for royalties generated by made-for-television episodes of "Spider-Man," "X-Men" and "The Incredible Hulk."
The agreements at issue in the lawsuit, filed late Thursday in Los Angeles County Superior Court, were made before Disney acquired Fox Family Worldwide in 2001. The lawsuit claims Disney has not kept accurate records of royalties due under those inherited agreements.
Disney spokesman John Spelich said the company had not yet seen the lawsuit and could not comment.
Episodes of all three shows were made in the late 1990s and Disney inherited the right to air them and sell the shows on home video and into foreign markets, the lawsuit claims.
Marvel claims it is owed millions of dollars in royalties, including from the licensing of music associated with the shows.
It also claims Disney failed to aggressively market the shows, especially in light of the popularity the three titles have gained from the successful theatrical movies made by other studios.
"Indeed, although Disney is the heir to these important rights, it has treated these profitable properties as second rate," the lawsuit states.
The lawsuit, which claims $54.8 million in total damages, does acknowledge that Disney did pay some disputed royalties when asked.
