THR, Esq. Entertainment & Media Law Blog

Sex, Drugs and the New Jon Peters Complaint

By Eriq Gardner

A fight has broken out between producers involved in a planned "Superman" film.

In a lawsuit filed in Los Angeles Superior Court, "Superman: Man of Steel" co-producer Brian Quintana is accusing co-producer Jon Peters of a litany of misbehavior, from failing to make good on promised payments to an extraordinary request to help cover up the statutory rape of Peters' daughter.

The complaint can almost be broken into two sections.

The first concerns the money that Quintana says Peters and his companies owe him. Quintana claims he's due $50,000 in unpaid wages, $100,000 in bonus money for helping Peters get a star on Hollywood's "Walk of Fame," $20,500 as a marketing bonus for helping Peters sell his home, $60,000 as an automobile allowance, $150,000 for co-producing the Superman film, $150,000 for co-producing another Peters film called "Africa," and more money due from another project, a book deal, and outstanding vacation pay.

Obviously, Quintana didn't get his money, and the latter half of the complaint spills the sordid details of their relationship. Quintana accuses Peters of sexual harassment and making outrageous demands of his services. These demands include perjury, the forgery of signatures, the procurement of illegal drugs, tax and other accounting fraud, and the assistance and cover-up of some extreme sexual behavior. Click to read the complaint itself for all the specifics.

Peters produced hits including "Flashdance," "The Color Purple," and "Batman." He's said to have inspired the character portrayed by Warren Beatty in "Shampoo." And he's been sued before for sexual harassment.

Who's Watching the 'Watchmen' Case

By Eriq Gardner

Much of the attention in the "Watchmen" case has so far been focused on whether Warner Bros. will be able to distribute its $100-million-plus film next March, or whether Fox will be able to block the superhero blockbuster based on two deals it made with producer Lawrence Gordon in the early 1990s. Sunday's LAT updates the situation with an overview discussing the "changed elements" clause in Gordon's deals that could impact the case.

As illustrated with "Watchmen," projects that are put into turnaround trigger boilerplate "changed elements" language in contracts. In this case, Fox claims Gordon was required to resubmit "Watchmen" to Fox if the movie changed director, lead actor, script, budget or any crucial aspect of the film.

"Watchmen" indeed changed its core elements as it was passed from one studio to another. According to the LAT: "Forsaken film adaptations include versions from directors Terry Gilliam ("Brazil"), Paul Greengrass ("The Bourne Ultimatum") and screenwriter David Hayter ("X-Men"), with countless script revisions along the way. Joaquin Phoenix was once considered for Crudup's starring part..."

One might ask why Fox didn't more forcefully hold Gordon to his contract during those intervening years. Many questions will be answered if the case ever gets to trial.

But regardless of the outcome in the "Watchmen" case, the situation also exposes some of the interesting twists and turns of turnaround. For example:

Memo To Barack Obama: Don't Do This

By Eriq Gardner

How Barack Obama will use his 30 minutes of paid airtime tonight is an open parlor game. "Saturday Night Live" made its guess. The NYT as fun speculating, based on the one-minute trailer it was shown. (Yes, even informercials now have trailers.)

One thing he probably shouldn't do, however, is prank call John McCain and leave nasty messages on the Republican candidate's voicemail. Sure, that would be funny, but as two BBC entertainers are finding out, these things have consequences.

Russell Brand ("Forgetting Sarah Marshall") and Jonathan Ross, another high-profile British TV star, have been suspended by the channel after the pair participated in an on-air prank call to 78-year-old comedy actor Andrew Sachs ("Fawlty Towers"). They joked about sleeping with Sachs '23-year-old granddaughter, causing a reported 18,000 viewer complaints. So notwithstanding a a three-year, multimillion dollar contract, the two are now off the air, as the country's version of the FCC investigates whether the broadcasting code was broken.

Hollywood Docket: CBS and ESPN Accused of Bad Intentions

By Eriq Gardner

TV Land is as strange as the lawsuits it engenders. Here's a couple of new ones:

• An actress stand-in on CBS' hit "CSI" is suing the network, claiming it retaliated against her for complaining of sexual harassment on the set. In the complaint filed in Los Angeles Superior Court, Shanelle Renee Howard says that after three years of stand-in work on the show, producers cut her workload back more than 90 percent after she gave testimony to others pursuing a separate sexual harassment claim.

• A former boxer now serving prison time has filed a pro se lawsuit against ESPN Classic after the station rebroadcast his fight against Joe Frazier. The boxing match represented Frazier's last fight, but Floyd "Jumbo" Cummings says it violated his rights of publicity. He's seeking $50 million in damages and in what might be called either rambling or poetic, his self-penned complaint says:

"ESPN Classic, well knowing the said premises, but contriving and wrongfully and maliciously intending to injure and aggrieve me and to bring me into public notoriety and to destroy the comfort of my life and peace and tranquility of mind, and to thrust upon me, unsought, unwarranted and undesired publicity and notoriety, utterly obnoxious to me, and annihilate and destroy.."

Robin Williams Wants $6 Million for 'Dicks' Pay-or-Play

By Eriq Gardner

Robin Williams has become the latest actor to sue after signing a "pay-or-play" contract to make a film and getting nothing when the production company shelves the project.

Williams has filed a lawsuit against Frank and Beans Prods. and Gold Circle Films, claiming $6 million in damages after the companies put the detective comedy "A Couple of Dicks" in turnaround. Williams claims he made both an oral agreement and has a written contract, though the latter was never signed by the actor.

Williams' lawsuit seems to indicate a growing problem over "pay-or-play" contracts that obligate a production studio to pay regardless of whether the film is actually made. Previously, John Cusack, Diane Lane, and Jerry Lewis have filed similar lawsuits. Some lawyers have been warning about this potential "minefield" for more than ten years.

Who Owns the Rights to 'Hannah Montana'?

By Eriq Gardner

"Hannah Montana" has troubles beyond star Miley Cyrus' commitment to the Disney Channel smash hit show.

Now producers, including Disney and ABC, are being sued by Michael Poryes, one of the show's creators.

Poryes, who has also executive produced and written some of the series, claims in a California District Court complaint that as the creator, he has the right to make and market Hannah Montana merchandise, films, books, video games, concerts, and the like. He says that he licensed rights to the franchise in exchange for a percentage of earnings. Here's the   complaint. In it Poryes says that the contract has been breached and that the defendants have failed to pay him his proper share of royalties.

But there's more:

Rod Lurie Claims Touchstone Used WGA Strike To Impeach His 'Commander-in-Chief' Money

By Eriq Gardner

We're a bit surprised we haven't seen more lawsuits emanating from last year's writers' strike. Especially after the words “force majeure" became the catchphrase around town.

Now, producer-director-writer Rod Lurie is suing Touchstone TV claiming he is owed $1 million for work — or non-work — on the cancelled series "Commander-in-Chief." The lawsuit, filed in Los Angeles Superior Court, claims that after he was replaced as executive producer of the series, Touchstone satisfied its original "pay or play" contract with Lurie by signing a two-year, $3 million extension with him that apparently paid him for sitting on the sidelines in a consulting capacity. But Lurie claims that Touchstone used the WGA strike last year to wiggle out of its financial obligation to him.

Lurie is represented by Henry Gradstein.

TV Writers Force WGA To Hand Over Data For Class Action

Posted by Eriq Gardner

A California Appeals Court has ordered the WGA to turn over demographic data to a protesting sect of TV writers who want to use the information to build an age discrimination class action against  studios, networks, production companies and talent agencies.

In 2000, a group of TV writers filed a class action lawsuit against many in the TV industry. Since then, the lawsuit has evolved slower than the plot of "Lost." It stalled in the discovery phase as the plaintiffs demanded access to their union's data. In response to a subpoena, the WGA sent a privacy notice to its 47,000 members advising them of their right to object to disclosure of personal information on privacy grounds. Some 7,700 members raised objection, which the WGA took as a legal reason why they didn't have to disclose. A trial court sustained member objections and the plaintiffs appealed.

On Thursday, the 2nd Circuit overturned the trial court and granted the plaintiff-writers access to the requested information. The panel concluded that though "demographic data is personal information, it is barely sensitive information," and dismissed arguments that the decision would lead to a slippery slope for broader information requests.

To read the decision, click here.

Nikki Finke is also reporting that one of the defendants, ICM, may settle its end of the dispute.

You'll Never Guess What Paris Hilton Is Being Sued For

Posted by Eriq Gardner

It's extremely hard to believe that anybody could ever accuse Paris Hilton of shying away from publicity. Well, stop the presses because Hilton is being sued for more than $75,000 because she allegedly failed to provide "reasonable promotion and publicity services" for the film, "National Lampoon's Pledge This!"

The plaintiff is a court-appointed receiver assigned to collect debts from the 2006 stinker. The lawsuit, filed in Florida district court, blames lost revenue and profits from the film as attributable to Paris Hilton Entertainment Inc.'s (yes, she's incorporated) contractual breach to reasonably promote the film that she starred in.

Never mind that the film's best review called it a  "steaming pile of excrement."

Maybe They Felt Sorry for Him After 'Speed Racer'

Posted by Eriq Gardner

Suing an actor for breach of contract isn't usually a successful strategy for getting him to rejoin a film, but apparently it worked for producers of the medieval epic "Pope Joan." Constantin sued John Goodman last year after the actor backed out of the film to take a supporting role in "Speed Racer." Now after litigation, Goodman is coming back.

In other news, Project Runway star Tim Gunn may be able to sue under whatever New York law bars slavery. According to a deposition by Harvey Weinstein in the Project Runway case, Gunn worked on the show's first season for nothing and barely anything more in the second season. No wonder producers don't like the idea of reality TV shows being assimilated into more powerful unions.

'Friday the 13th' Producer Looking to Scare Up More Profits

Posted by Eriq Gardner

Sean Cunningham, the director of the original "Friday the 13th" and an executive producer on the remake opening next year, is suing two production companies, Georgetown Productions and Horror Inc., behind the franchise. In a lawsuit filed in Los Angeles Superior Court, Cunningham claims they owe him $10 million for his work.

The suit maintains that Cunningham agreed to work on the first film in return for a 25% cut of the take from all remakes and sequels. The horror producer, represented by Bruce Isaacs and David Boren of Wyman and Isaacs, says he became aware of the money owed after Horror Inc. sued him in a separate action.

9th Circuit Lets Lassie Come Home (to Estate of Original Creator)

Posted by Eriq Gardner

Are you the member of an estate of a dead author who created a valuable entertainment property? If so, step right up and Marc Toberoff will file your intellectual property claim.

It seems that copyright disputes over claimed royalties are all the rage these days in Hollywood. Not a week goes by without a development on this front.

And Toberoff is front and center in these cases, especially when it comes to termination rights. He vexed Warner Bros. over the Superman character, and on Friday the 9th Circuit ruled that the daughter of the author who wrote the novel "Lassie Come Home" was in her legal right to exercise termination of granted copyright over Lassie. Classic Media had sued Winifred Knight Mewborn, daughter of Lassie author Eric Knight, after she terminated motion picture, television and radio rights to Lassie. At issue was a very technical dispute over agreements made before the 1976 Copyright Act and renewed afterward.

Classic was repped by Bonnie Eskenazi at Greenberg Glusker.

Forget Pirates, EMI Has a Graver Threat In Its Midst...

Posted by Eriq Gardner

Property rights — it's the issue that causes executives and lawyers at major record labels to toss and turn in their bed, worrying about the future of the industry. But at EMI, the issue isn't so much intellectual property. It's just damn property.

Tomorrow, the Los Angeles City Council will examine what to do about a proposed 16-story condo tower at 6230 Yucca St. EMI, owner of Capitol Studios and the Capitol Records Building that sits adjacent to the project, is sounding an alarm. First, it trotted out angry troubadours who claimed the damaged tower would damage acoustics in Capitol's famed recording studios. Now comes a press release that says a City Council approval would potentially shut down Capitol:

"If the City Council votes to approve Second Street Ventures' proposal, we may be forced to shut down the Capitol Studios operations entirely and permanently, resulting in the loss of potentially hundreds of jobs and wages and an estimated $14.2 million in annual revenues that the Studios generate for the Hollywood economy directly and indirectly from film, television and music businesses."

Friday will determine whether EMI will have to put their lawyers on this case. We imagine there might be an injunction sought if the Council isn't music-friendly. The press statement also says "The specific solutions that Second Street Ventures is proposing to mitigate the disruption to the Studios operations during construction, and on an ongoing basis, fall short of being sufficient. Their proposals are not legally binding and do not come close to covering the risk and financial losses our business will face."

Sounds like the last sentence can be applied to many threats to the music biz these days.

9th Circuit Rejects 'Pink Panther' Copyright Claim by Screenwriter Heirs

Posted by Eriq Gardner

A federal appeals court in San Francisco has rejected an appeal by heirs of screenwriter Maurice Richlin that they own a copyright interest in "Pink Panther."

In 1962, Richlin coauthored the story treatment that formed the basis of the popular film. At the time, Richlin assigned the copyright and the right to renew the copyright to the Mirisch Corporation, a company whose interests were later succeeded by MGM. The original film spawned more than a dozen sequels and TV series.

The heirs to Richlin sued MGM, relying upon the Supreme Court decision in Stewart v. Abend, a similar case involving the film "Rear Window" that examined what happens when the author dies before the renewal of copyright: If the heirs to the author don't bless the author's original agreement to renew, can they withhold the assignment of rights to derivatives of the original work? The Supreme Court ruled in favor of the heirs. ("“[I]f the author dies before the commencement of the renewal period, the assignee holds nothing.”)

Richlin died in 1990. Had he copyrighted his story treatment, it would have been up for renewal in 1991. However, there's the rub. The treatment was never copyrighted. The U.S. Copyright Office rejected the Richlin heirs’ argument that Richlin's unpublished work deserved statutory protection because it was used to form the basis of a movie.

Thus, the 9th Circuit rejects, and has some fun in the process:

Poison Files Toxic Accounting Claim vs. Capitol Records

Posted by Eriq Gardner

Every rose has its thorn.

In the late 1980s, Poison shot to fame with a blend of glam metal and sugarsweet balladry. A hot commodity at the time, the band signed a record contract in 1986 with Enigma Records, which was later bought by Capitol Records, owned by the EMI Group. The contract provided the record label with Poison's recording services for an initial period and four option periods.

But every night has its dawn.

After charting twelve singles to the Top 40 of the Billboard Hot 100, the band faded after 1993, though it continued to perform, record, and saturate VH1 with guest appearances and Bret Michaels' "Rock of Love" show.

Every cowboy sings his sad, sad song.

Now, alas, Poison is suing Capitol and EMI, claiming that the label is violating its recording contract by refusing to allow a full audit inspection of its books, plus underpaying the band. According to this complaint, Capitol has incorrectly calculated certain producer royalties, miscategorized certain record sales as budget or mid-price sales, made wrongful deductions, failed to account for certain domestic licensing income, and failed to account and pay royalties on compilation albums.

The band, represented by Mark Passin and Jonathan Stern at Dreier in Santa Monica, is suing for breach of contract and unjust enrichment. They want an accounting and gain further damages to be proven at trial.

'American Idol' Repeats Don't Sound the Same to Musicians Union

Posted by Eriq Gardner

The American Federation of Musicians is suing producers of "American Idol" over the soundtrack music used in reruns of the program.

The union, affiliated with powerhouse AFL-CIO, has filed suit in U.S. District Court in in Los Angeles complaining that producers of the nation's most popular show rerecorded a new orchestral soundtrack for "American Idol Rewind" instead of using the original performances of the musicians on the show. The complaint contends that by extracting the original music, producers were able to syndicate reruns of the program without having to pay re-use compensation to the unionized musicians on "American Idol."

The union claims that the labor agreement prohibited extraction of the original music. Re-use compensation would have been 75% of scale to each musician, plus 10% of compensation to the pension fund, plus further payments. The union wishes the court to order such payments be made.

 

Atlantic Records Wants More Albums From Stone Temple Pilots

Posted by Eriq Gardner

Stone Temple Pilots is being sued by their label, Warner Music Group Corp.'s Atlantic Records, after the '90s band tried to end their recording contract early.

The group told Reuters that they thought they were in the midst of "cordial and positive discussions" to end the relationship, and that the lawsuit caught them by surprise.

Atlantic Records wants the band, led by singer Scott Weiland (left) and drummer Eric Kretz, to record a seventh album, and possibly two more, according to the lawsuit filed in New York district court on Thursday. The complaint says that Weiland and Kretz demanded significant changes to their contract and threatened to stop performing under it if the changes weren't made.

 

'Funny Face' Case Claims Ownership Of Dance Scene Is No Laughing Matter

Posted by Eriq Gardner

Who owns the copyright to the famous dance scene in the 1957 film "Funny Face"? (Here's a pretty good facsimile of it.)

According to the film's director, Stanley Donen, he does.

Represented by Bert Fields, Donen is suing Paramount and The Gap for using a clip of the dance in commercials that aired last year and photos of the scene in print advertisements. What makes this case so unusual is that Donen claims that he "never had a written contract with Paramount regarding 'Funny Face,' and has never conveyed to Paramount his interest in that film."

As strange as it may be that a director would have been hired without a contract, the complaint filed in U.S. District Court in Los Angeles goes on to acknowledge that Paramount registered the copyright in the entirety of "Funny Face," and that they have licensed the film for years to distributors without objection. Donen says "he makes no claim with respect to such distribution, which was intended when the film was made....(but) defendants have now exceeded the uses in which plaintiff acquiesced and plaintiff has strong objection to Paramount's selling the Dance Scene he created..."

   

Updated News On NBC, MySpace, and SAG

Posted by Eriq Gardner

Just some updates on some stories we posted last week:

• There was some confusion last week after Windows Vista Media Center users couldn't digitally record NBC's Monday night programming. Now, Microsoft has acknowledged that it blocked its own users at the request of a broadcaster. They didn't finger the broadcaster, though it's pretty apparent who it is.

• A case of MySpace bullying opened up the door to criminal prosecution for website users who violate terms of service. In another case, the 5th U.S. Circuit Court of Appeals has ruled that that the Communications Decency Act of 1996 gives MySpace immunity from lawsuits stemming from sexual assault incidents that arise from the popular social networking site. "(Parties) may sue the third-party user who generated the content, but not the interactive computer service that enabled them to publish the content online," wrote Judge Edith Brown Clement in the ruling.

• Consent and compensation for clips of film and TV work posted online has become a major issue of contention in talks between SAG and the AMPTP. SAG national exec director Doug Allen has posted a video on on SAG’s website that outlines the union's position and stresses that actors have had the right of refusal in traditional media for 50 years.

Can ABC Use Isaiah Washington's Image on 'Grey's Anatomy'?

Posted by Eriq Gardner

Isaiah Washington and his lawyer, Peter Nelson, have raised an interesting legal question with the complaint filed with SAG over ABC's use of Washington's image on a recent episode of "Grey's Anatomy."

The actor played Dr. Preston Burke and left the show in 2007 amid controversy about an off-air comment about a castmate. He now takes issue with the show's use of his photograph in the May 9 episode, where a newspaper clipping revealed that Dr. Burke had won a prestigious surgeon's award, thus explaining to viewers what happened to the departed character.

"They have the rights of the character to advance the story, but not the image," says Nelson. The actor is looking for a "financial settlement."

We're wondering what sort of reproduction of Washington's image was used. The show not only owns rights to the character but also rights to past episodes, so let's hope (for ABC's sake) they used a screen shot. We're guessing they didn't.

Interestingly, the issue of image rights comes as actors and studios are in dispute over compensation for online clips. If there's one big difference between SAG and the other guilds that signed new agreements earlier in the year, it's image.

Make It Happen: 'Project Runway' Dispute Tears Deeper

Posted by Eriq Gardner

Bravo seems to be stitching its "Project Runway" tear.

Parent NBC Universal announced it filed a request for a preliminary injunction to prevent the Weinstein Co., the producers of "Project Runway," from marketing and promoting a version of the show on the Lifetime network. TWC announced last month a $150 million deal to bring the popular reality program to Lifetime.

Meanwhile, NBC Uni also signed "Runway" producers Dan Cutforth and Jane Lipsitz to an exclusive first-look deal.

Conceivably, Cutforth and Lipsitz could create a "Runway" knockoff (without Heidi Klum, who is going to the Lifetime program) and may even be able to secure Tim Gunn, Nina Garcia, and Michael Kors, who have yet to sign deals with the Weinsteins.

HBO Drama Incurs Wrath of Hell's Angels Founder

Posted by Eriq Gardner

HBO might have a biker-sized problem on its hands with a potential new series, "1%."

According to a lawsuit filed yesterday in federal court in Los Angeles by famed Hells Angels founder Sonny Barger, the script, concept and elements in the show were developed with his collaboration. However, the complaint contends that HBO, the White Mountain Company, and writer/producer Michael Tolkin cut him out of the project and violated many of his publicity rights when he demanded changes so as not to dilute his own brand.

HBO announced the pilot, set in the world of biker gangs, back in October (the "1%" title is a reference to a tattoo used by biker gang members to symbolize life on the fringe of American society). Barger now says he first optioned his bestselling autobiography to 20th Century Fox for movie development. Fox then hired Tolkin (Robert Altman's "The Player") to write the script. Barger claims he shared with Tolkin some of the other fiction projects he had been working on. Together, the two pitched HBO on a new series, and eventually HBO turned to Tolkin to create it.

UFC Superstar Sues League to Fight Again

Posted by Eriq Gardner

Earlier this month, Ultimate Fighting Championship was accused of destroying a competitive mixed martial arts group. Now, the hot media property is being sued for destroying the career of one of its most popular performers.

Ken Shamrock is suing in U.S. District Court in Nevada, alleging that UFC promotional subsidiary Zuffa reneged on a two-fight deal. According to this complaint, Shamrock fought fellow superstar Tito Ortiz in fight #1, and then retired. Later he decided to come out of retirement and make the second fight per the contract, but that Zuffa decided to change the deal.

Shamrock is asking the court to interpret the contract's clause concerning retirement and that the contract remains in full force. He is also seeking at least $10,000 in damages.

50 Cent's 'Gangsta' Lifestyle Under Attack in False Imprisonment Claim

Posted by Eriq Gardner

The mother of a 15-year-old boy is suing 50 Cent, his G-Unit crew and several record companies including Universal Music and Interscope Records for living the gangster lifestyle a bit too hard. The first 36 pages of the complaint are all about the gansta lifestyle, but the meat of the matter comes when the plaintiff accuses the defendants of "forcibly detaining" the kid and assaulting and battering him with harmful and offensive touching. Tony Yayo, one of 50 Cent's posse, was previously charged with a criminal offense for the incident.

In other hip hop news, Snoop Dogg has put one of his many legal issues to bed, settling a lawsuit with his former record label Priority Records involving fees and advances for a 1998 recording agreement. The rapper filed the lawsuit against the company in November 2006, alleging it owes him $2 million in fees under the recording agreement and did not consult with him before releasing his greatest hits CD. He also claimed breach of contract, contending the company did not pay him a $950,000 advance promised after he recorded ''Tha Last Meal.''

Man Seeks Judgment Day Over Producer Credit On 'Terminator' Show

Posted by Eriq Gardner

We never really got into "Terminator: The Sarah Connor Chronicles" (something about a petite high school girl playing a soulless killing machine stretched credibility a bit much, even for a Fox drama). Then yesterday, the day of the show's season finale, a Los Angeles man sued Fox, Warner Bros, C2 Pictures and Cinergi Entertainment, claiming he was improperly denied a producer's role after helping the studios formulate the idea for the show.

David Leener has worked in marketing and product placement in the entertainment industry for several years. In 2005, he was spotlighted by the New York Times as a key player in product placement deals on such films as "Herbie Fully Loaded" and "National Treasure."

According to this complaint, after working on product placement services on 2003's "T3: Rise of the Machines," Leener learned that C2 was interested in developing a television series based on the popular film franchise. Lenner says he met with several of the defendants and was promised a role in producing the series. Later, he claims he met with the Sci-Fi Network to discuss a series.

PiracyWatch: Will RIAA Settlement Money Trickle Down To Musicians?

Posted by Eriq Gardner

A fight between musicians and the RIAA may be brewing over the distribution of money collected from lawsuits and settlements in piracy cases. According to the New York Post, "A contingent of prominent artist managers claims that little to none of that money has trickled down to their clients. They are now considering legal action."

Some lawyers are starting to go on the record to talk about this. "Artist managers and lawyers have been wondering for months when their artists will see money from the copyright settlements and how it will be accounted for," said John Branca, a well-known music attorney (and THR Power Lawyer!) who has represented Korn, Don Henley, and the Rolling Stones, among others.

Actually, a lawsuit has already been filed by one group. Last week, we reported that jazz musicians filed a class action against Universal, and one of the major bones of contention was the non-sharing of piracy settlement money.

Guilds Take Battle For Increased Profit Participation to California Leglislature

Posted by Eriq Gardner

Think that just because the writers' strike was settled, the battle over how to split up the entertainment revenue pie is over? Think again.

Labor guilds including the WGA and the International Brotherhood of Teamsters union are promoting a new bill in the California state legislature that would boost revenue to profit participants from content that is licensed to affiliated cable television networks. The guilds contend that studios undersell programs to cable stations with which they have corporate affiliation.

Sound familiar? The bill (SB1765), promoted by state Sen. Sheila Kuehl, takes direct aim at so-called "vertical integration" claims against studios that create and distribute content and often end up negotiating distribution deals with themselves. The bill would require that studios sell content at the "fair market value" they would fetch in a competitive market. The studios obviously oppose the efforts, arguing, in part, that determining that fair market value is easier said than done.

The topic has long been one of the most heated in entertainment litigation. Cases involving ABC's "Home Improvement," Fox's "The X-Files" and, just last summer, NBC's "Will & Grace," have all included claims that vertical integration has shortchanged profit participants when the shows were sold to affiliated entities. It will be interesting to see whether the Kuehl, a former child actress, can interest her fellow members of the legislature in the issue.

This is the first time the guilds have gotten involved in the issue

Cheetah Girls Creator Latest Alleged Victim of Hollywood Accounting

Posted by Eriq Gardner

Calling all entertainment lawyers! The LA Times has helpfully profiled a well-known author in apparent need of litigation services. Yes, it's "Hollywood accounting" again, and "Cheetah GIrls" author Deborah Gregory is pretty upset.

Gregory is the creator of the Cheetah Girls franchise, originally a 16-book series that was turned into CDs, DVDs, shoes, dolls, toothbrushes, video games, backpacks, note pads, pillows, and of course, a series on the Disney Channel.

The paper says she signed a contract in 2001 that promised to give her 4% of the net from all this, but instead she's earned just $125,000. "People think I must be living in a palace, when they think of the success of the Cheetah Girls," she said from her cramped Manhattan studio apartment. "But look at this place. It's a . . . dump."

Disney wouldn't comment about why this is the case.

The story identifies the lawyer who negotiated Gregory's deal as Lita Richardson, who wouldn't comment about whether her client got a raw deal. Other lawyers and agents quoted believe that Gregory's representatives may have been a little naive and starstruck. Gregory has now hired another entertainment lawyer, Lisa Davis, to negotiate a new contract.

NBC, Dick Wolf Take 'Law & Order' Dispute to Real Courtroom

Posted by Eriq Gardner

For years, Dick Wolf has given NBC Universal a valuable franchise of law-based dramas called "Law & Order." Now, the big producer is giving them a bit more — a legal headache.

On Friday, NBC Universal filed a lawsuit in Los Angeles Superior Court against Wolf asking a court to interpret a contract between the two parties. At issue is the amount of executive producer fees Wolf is entitled to receive. NBC claims that it is only required to pay for episodes actually produced. Wolf says that NBC orders his series in blocks and if they aren't produced, he's entitled to a "kill fee."

NBC Universal claims that Wolf's position would provide him "with an unintended windfall of millions of dollars."

Judging by the complaint, the confusion may have arisen over whether NBC Universal's block-episode pay guarantee was for the network's initial order in its 2004 agreement with Wolf or whether those same types of commitments extended to subsequent episode orders.

It also suggests there is a difference of opinion on what terms were agreed upon in the short-form contract and what ended up memorialized in the long-form deal.

NBC is represented by litigator (and THR Power Lawyer!) Scott Edelman of Gibson Dunn & Crutcher; Wolf has a team from Lavely & Singer.

New Details on What Might Happen With Heath Ledger's Last Movie

Posted by Eriq Gardner

Heath Ledger's death has left producers of the actor's uncompleted "“The Imaginarium of Dr. Parnassus" with a big quandary over how to proceed with the film. THR has the news that production on the Terry Gilliam film has shut down. And the NYT fills in some of the details. Brian Kingman, managing director of Aon/Albert G. Ruben Insurance, told the paper "that only 18 days of filming had been completed on the film, suggesting that about $14 million had been spent, and that Mr. Ledger had been named an 'essential element' under the film’s cast-insurance policy."

This would give the producers the right to invoke the force majeure clause and abandon the film (and recoup the $14 million), or to reshoot the film with another actor. The Sun suggests that Johnny Depp is "poised" to fill Ledger's shoes, although the U.K. tabloid is a somewhat unreliable source.

It may not be as simple as that. As discussed in our earlier post, there could be room for the insurance company to challenge a claim depending on the outcome of the Ledger death investigation.

Heath Ledger's Death Leaves Big Legal Question

Posted by Eriq Gardner

Heath Ledger died yesterday at the age of 28, a shocking end for a talented actor.

His death raises a number of very interesting legal issues. Of particular importance to Hollywood will be the future of Terry Gilliam's "The Imaginarium of Doctor Parnassus," which had very recently begun shooting.

After dealing with the shock of losing Ledger to unfortunate circumstances, the film's producers and lawyers will have to consult with their production lawyers and the insurance firm that indemnified the film to decide whether to recast, restage and/or rewrite the film to work around Ledger's absence, or whether Ledger's death presents an irresolvable barrier to completion of the film.

This is not the first time an actor's death has prompted a producer to negotiate the nature of the insurer's step-in. Some famous examples include Lloyd's of London paying nearly $3 million to MGM/United Artists to finish "Brainstorm" after the drowning death of actress Natalie Wood; CNA's agreement to pay for script revisions, extra shooting, and special effects on "The Crow" after actor Brandon Lee died; and a $14.5 million payment to the producers of "Wagons East" when actor John Candy died of heart failure with 20% of production remaining.

Mary Calkins, a partner in Howrey’s Los Angeles office who has represented several television shows and production companies in insurance recovery matters, says "the insurance component will be a big issue, especially where the production has $30 million potentially at risk."

Calkins believes that the independent producer may have "key man" coverage that pays out in circumstances of death or injury of lead actors, but that "policies typically contain various exclusions, including general exclusions for drug or substance issues."

Ledger's role in the Gilliam film is said to be small but important, and the circumstances surrounding his death have yet to be revealed. These facts could be key to any dispute over coverage.

Worse case scenario is that this turns into another "Dark Blood," the legendary ill-fated movie that was in the midst of production when its star, River Phoenix, died in 1993. Afterward, according to Entertainment Weekly, Phoenix's mother was sued to recover damages, and  the film's rights ultimately landed in the hands of the insurance company, which sealed it in the company's vault and threw away the key.

Coincidentally, Gilliam has had enormous experience with disaster insurance. In 1999, in a movie that almost wrecked his directing career, the $32 million budgeted film "The Man Who Killed Don Quixote" was shut down due to an actor's back problems, finance problems and floods. His experiences with the insurance company on that film was featured in the much lauded documentary, "Lost in La Mancha"

UPDATED: It seems production on the film has been shut down.

Can Nickelodeon Legally Sever Its Ties with Pregnant Jamie Lynn Spears?

Posted by Eriq Gardner

Sixteen-year-old Nickelodeon star Jamie Lynn Spears' pregnancy is quickly becoming a hot-button legal morass. The father is reportedly 18 years old. Will statutory rape be charged? The answer seems to depend on the aggressiveness of prosecutors and whether the charges are brought in Louisiana (where Spears lives) or California (where she works). According to Newsweek, Nickelodeon may have cut ties with Spears weeks ago. If not, the cable network could be forced to decide whether to invoke the "morals clause" of Spears' contract and risk a potential discrimination lawsuit. Newsweek publishes a Q&A with L.A. labor lawyer Anthony Oncidi, who has represented studios and production companies in Hollywood for more than 20 years.

Newsweek: In terms of alleged criminal behavior, how binding are (morals clauses)? Without a conviction, are studios still able to use things like arrests as grounds for breach of contract?

Oncidi: In California there is a very strict rule that an employer cannot take adverse employment action based on an arrest that has not led to a conviction. So an arrest might run afoul of a morals clause, but you have a statutory provision that still protects them as it does any other employee.

Somehow we don't think Nickelodeon wants to get into this fight in public. Which may explain why the network and Spears were talking quietly before the news broke.

WBTV Promotes Limerick to SVP

Posted by Matthew Belloni

Warner Bros. TV business affairs exec Dan Limerick has been promoted to senior vp, the stuido announced today. Here the story from THR. Limerick's the point person for WBTV's big-ticket deals with J.J. Abrams, Chuck Lorre ("Two and a Half Men") and Tom Werner.

Limerick began his biz affs career with Werner's now-defunct Carsey-Werner-Mandabach, producers of hits like "The Cosby Show" and "Roseanne." He joined WBTV in 2002 and was upped to vp in 2004, reporting to exec vp Brett Paul. Limerick now heads negotiations for WBTV shows "Smallville," One Tree Hill" and the upcoming "Terminator: The Sarah Connor Chronicles.

He's a 1997 grad of UCLA Law.