Mrs. Maggott
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The following appeared on the CNN net's entertainment news:
Peter Jackson sues over 'Rings' profits
Wednesday, March 2, 2005 Posted: 10:26 AM EST (1526 GMT)
LOS ANGELES, California (Hollywood Reporter) -- "Lord of the Rings" director Peter Jackson has sued New Line Cinema for allegedly withholding profits from the first film in his Oscar-winning trilogy, "The Fellowship of the Ring."
The suit, filed in U.S. District Court in Los Angeles by Jackson's company, Wingnut Films Ltd., makes 19 allegations, including breach of contract, breach of good faith and fair dealing and unfair competition.
One of the principal claims of the suit is that Time Warner Inc.-owned New Line engaged in various forms of "self-dealing" with affiliated companies, an issue that has been vigorously pursued by plaintiffs attorney Stanton "Larry" Stein.
It seeks unspecified damages, restitution and an order barring New Line from striking any more deals without seeking the most competitive and beneficial terms from unaffiliated third parties.
The case stems from a 1998 written agreement for Wingnut and New Line to jointly produce and distribute the three films. Among other terms, Wingnut got paid a fixed fee and shared in "first dollar" gross receipts.
New Line is accused of improperly deducting certain home video costs that were not spelled out in the agreement, paying an incorrect royalty rate for DVD sales, delaying the reporting of certain licensing revenue and failing to audit subdistributors, including those affiliated with New Line.
The latter claim goes to the broader issue of self-dealing, in which Wingnut accuses New Line of allowing its subdistributors to charge a higher fee than would be expected from nonaffiliated companies.
Companies that have sued under this theory tend to claim that a partner cut a favorable deal with an affiliate rather than put the license or property out to bid in the free market.
In a statement, Jackson's attorneys said they attempted to resolve the dispute with New Line through a routine audit. "That has proven unsatisfactory thus far, (and) this lawsuit is the next logical step," Jackson's representatives said.
New Line officials said they do not comment on pending litigation.
The suit against New Line and its subsidiary Katja Motion Pictures Corp. concerns only the 2001 film, which the suit notes has grossed $314.8 million at the North American box office and more than $556 million internationally, not counting merchandising and video revenue. The suit makes no mention of the other two films in the trilogy.
New Line also is accused of failing to include revenue and other guarantees received from promotional partners in merchandising receipts. Wingnut claims it also was not compensated for the use of lyrics penned by Jackson's wife and collaborator, Fran Walsh, and the couple's script in video games.
I thought this might be of interest to film buffs.
Peter Jackson sues over 'Rings' profits
Wednesday, March 2, 2005 Posted: 10:26 AM EST (1526 GMT)
LOS ANGELES, California (Hollywood Reporter) -- "Lord of the Rings" director Peter Jackson has sued New Line Cinema for allegedly withholding profits from the first film in his Oscar-winning trilogy, "The Fellowship of the Ring."
The suit, filed in U.S. District Court in Los Angeles by Jackson's company, Wingnut Films Ltd., makes 19 allegations, including breach of contract, breach of good faith and fair dealing and unfair competition.
One of the principal claims of the suit is that Time Warner Inc.-owned New Line engaged in various forms of "self-dealing" with affiliated companies, an issue that has been vigorously pursued by plaintiffs attorney Stanton "Larry" Stein.
It seeks unspecified damages, restitution and an order barring New Line from striking any more deals without seeking the most competitive and beneficial terms from unaffiliated third parties.
The case stems from a 1998 written agreement for Wingnut and New Line to jointly produce and distribute the three films. Among other terms, Wingnut got paid a fixed fee and shared in "first dollar" gross receipts.
New Line is accused of improperly deducting certain home video costs that were not spelled out in the agreement, paying an incorrect royalty rate for DVD sales, delaying the reporting of certain licensing revenue and failing to audit subdistributors, including those affiliated with New Line.
The latter claim goes to the broader issue of self-dealing, in which Wingnut accuses New Line of allowing its subdistributors to charge a higher fee than would be expected from nonaffiliated companies.
Companies that have sued under this theory tend to claim that a partner cut a favorable deal with an affiliate rather than put the license or property out to bid in the free market.
In a statement, Jackson's attorneys said they attempted to resolve the dispute with New Line through a routine audit. "That has proven unsatisfactory thus far, (and) this lawsuit is the next logical step," Jackson's representatives said.
New Line officials said they do not comment on pending litigation.
The suit against New Line and its subsidiary Katja Motion Pictures Corp. concerns only the 2001 film, which the suit notes has grossed $314.8 million at the North American box office and more than $556 million internationally, not counting merchandising and video revenue. The suit makes no mention of the other two films in the trilogy.
New Line also is accused of failing to include revenue and other guarantees received from promotional partners in merchandising receipts. Wingnut claims it also was not compensated for the use of lyrics penned by Jackson's wife and collaborator, Fran Walsh, and the couple's script in video games.
I thought this might be of interest to film buffs.
