A case that’s been brewing against Warner Bros. for months  has finally been made official today after a judge dismissed their motion to put an end to 20th Century Fox’s lawsuit over the film adaptation rights to Watchmen. Once this case actually hits the court floor, the ruling could prove to be a huge disaster for Warner Bros., with them having to hand over huge, heaping handfuls of money.

UPDATE!!!!

Right after the graphic novel’s original publication in 1986, producer Lawrence Gordon brought the property to Fox and Warner Bros., who then put it on the fast track with Terry “Brazil” Gilliam directing and action mogul Joel Silver co-producing. Gilliam decided it was unfilmable and left the project. He then went on to make Tideland years later, which was unwatchable.

In the meantime, Watchmen was stuck in development hell. No one could make hears or tails of what to do with it and in 1994, Gordon took back the rights and began shopping it around. Or so he thought. Apparently, when he gained back the much sought after creative property, he neglected to option the remaining interest Fox owned in the film, which was renewed in ‘91.

The Zack Snyder helmed adaption of the Alan Moore/Dave Gibbons collaboration is still set to hit theatres on March 6, 2009, the same weekend 300 premiered in last year, though we might be seeing a Fox logo in the film’s opening, alongside the Warner Bros. and Paramount ones already there. If the court does indeed rule in Fox’s favor, WB could owe them millions, depending on how well the film does (my sources are saying it’ll make “oodles of money”).

Of course, Fox waits until the last minute to bring the dispute up. But, after all, that is the American way.

UPDATE by Mikey B

It seems that this is actually going to go further than most of us speculated.  An actual hearing date of Jan. 6th has been set, two months before the film is set to release, according to the Hollywood Reporter.

At issue is whether Fox still holds the rights to “Watchmen.” The studio sued Warners in February for copyright infringement and interference with its contract rights under a 1991 agreement between Fox and Largo Entertainment producer Larry Gordon. 

Under that deal, Fox “quitclaimed” its right to “Watchmen” to Largo, with the understanding that if the production company proceeded with making a big-screen version, then the movie would be distributed by Fox. It later negotiated a “turnaround notice” with Gordon that established a buyout formula for the studio if Gordon wanted to buy out Fox’s rights. But, according to Fox, Gordon failed to follow that deal. 

Let’s see if these studios can quit being babies and handle it like men.  Fox hasn’t put out a good film in a while, and now they see one that might be and they want to jump all over it.  I understand they’re probably in the right, but just attach your name and take part of the cash!