A scene from the Spider-Man movie. REUTERS:
A STICKY WEB of legal intrigue over Spider-Man movie merchandising is in the hands of a Los Angeles judge, who is expected to decide this week whether or not it will be untangled entirely in public.
Comic book publisher Marvel Enterprises Inc. has filed suit against Sony Pictures Entertainment, seeking to terminate its Spider-Man licensing agreement with the movie studio after the upcoming sequel to last year's blockbuster film.
Sony has sought to settle the dispute privately in arbitration, while Marvel has asked for a jury trial. The movie studio argues that Marvel is using the litigation as leverage to secure better licensing terms, knowing disclosure of sealed documents in the case would compromise Sony's dealings with future business partners and competitors.
Judge Alexander Williams today will consider motions by Sony seeking to keep certain documents under seal and to refer the dispute to a referee - a retired judge assigned to handle the case in an expedited manner - rather than a jury trial.
Losing its licensing pact with Marvel would effectively cut short one of Sony's most potentially lucrative film franchises. However, Marvel has insisted that its suit is not an attempt to halt production of a Spider-Man sequel.
The original Spider-Man movie, starring Tobey Maguire as a geeky teenager transformed into a superhuman crime fighter by a bite from a genetically-altered spider, was the highest-grossing movie of 2002, generating worldwide ticket sales of US$800 million.
Marvel, whose 4,700 comic characters are licensed to promote everything from snack foods to clothing and entertainment, filed its complaint under seal in Los Angeles Superior Court in February.
Details of the litigation have since surfaced in redacted court papers filed by both sides in arguments over how much, if any, of the proceedings should be opened to the public.
Judge Williams has tentatively ruled that the proceedings should be open and is expected to issue a formal decision after a hearing on the matter set for today.
DISPUTE CENTERS
ON MERCHANDISING
Marvel says Sony essentially has tried to hijack the Spider-Man brand, claiming exclusive merchandising rights to the character and 'cross-promoting' the superhero with other Sony features in violation of their agreement. According to Marvel, Sony's objective was to 'disassociate Marvel's 'crown jewel' from 'Marvel' in the minds of retailers and the public, an intent never disclosed when Sony 'fraudulently induced' Marvel to sign the licensing pact.
In addition, Marvel says Sony reneged on its promise to use its sister companies, such as Sony Electronics and Sony's games division, to merchandise the web-slinger.
"Marvel is a company whose lifeblood and business is merchandising and licensing," Marvel attorney Carole Handler told Reuters. "If the merchandising is skewed, it doesn't just affect short-term profit based on the movie, it affects Marvel's long-term future."
The studio, a unit of Japanese electronics giant Sony Corporation, maintains that Marvel's suit is merely a legal ploy to 'force the unjustified renegotiation' of their license agreement, signed in 1999.
"Everything they're complaining about we are permitted to do, and have done, under and pursuant to the contract," Sony lawyer Patricia Glaser said.
According to Sony, Marvel executives have repeatedly expressed their dissatisfaction with the pact, especially their share of box office and home entertainment receipts.
