'x' Marks $100 Mil Lawsuit

The "Mutant X" syndicated TV action series is the focus of a $100 million lawsuit filed by Tribune Entertainment against comic giant Marvel Enterprises. Tribune is accusing Marvel of fraud and misrepresentation in granting rights to Tribune to produce the sci-fi series.

The alleged fraud, negligent misrepresentation and breach of contract by Marvel resulted in Tribune being forced into litigation with 20th Century Fox Film Corp., which claimed that the TV series was a "knockoff" of Fox's "X-Men" characters. A settlement was agreed upon in that case earlier this month, and the notice to dismiss the Fox case was filed Thursday.

At the same time, Tribune filed its suit against Marvel on Tuesday in New York Supreme Court requesting damages, including punitive damages from Marvel in the amount of "at least $100 million."

Papers filed in court allege that in July 2000, around the time of the release of the movie "X-Men," Rick Ungar, then president of the Marvel character group, contacted Tribune Entertainment president and CEO Richard Askin and asked if Tribune would be interested in acquiring rights for a live-action hourlong TV series based on "X-Men."

"In their discussions, Ungar specifically told Askin that Marvel had retained the television rights to the 'X-Men' in its deal with Fox to produce an 'X-Men' feature film," the suit maintains.

The following month, Ungar began negotiations with Tribune business affairs senior vp David Berson on the enterprise. "Ungar specifically told Berson that Fox had no rights whatsoever with respect to an 'X-Men' TV series," the suit alleges.

Tribune entered a deal memorandum with Marvel to produce, finance and distribute the "Mutant X" series. Tribune created a sales tape to pitch the show to stations and used clips from the "X-Men" movie. Ungar actually reviewed that tape and made specific recommendations concerning the use of clips from "X-Men."

Ungar later stated to Tribune: "We are losing the very point we are seeking to take advantage of; you folks didn't make a deal with us to sell some generic mutant show. You wanted the connection to the 'X-Men' — you wanted the connection to Marvel — I would really suggest that it be used."

By the end of March 2001, Tribune was clearing "Mutant X" with broadcasters around the country for a fall 2001 debut and had licensed it to 125 TV stations.

But the suit alleges: "Unbeknownst to Tribune, throughout the same period that Marvel was telling Tribune to proceed full steam ahead with 'Mutant X,' Marvel had been engaged in a series of ongoing communications with Fox in which Fox expressed its very serious concerns about the content and title of 'Mutant X' and, specifically, its relationship to the 'X-Men.' Based on those communications, Marvel knew or should have known that Fox would complain about any real or perceived linkage between 'Mutant X' and the 'X-Men.' However, Marvel did not tell Tribune about Fox's expressed concerns."

Fox then sent a letter to Marvel asserting that "Mutant X" "is a thinly veiled version of 'X-Men' " and that "Marvel's production and distribution of 'Mutant X' was illegal and a material breach of the 1993 (license) agreement" between Fox and Marvel. Fox demanded that "any further development, production and distribution of 'Mutant X' cease immediately."

In April 2001, Fox filed suit against Marvel and Tribune alleging that the characters in the TV series were virtually identical to those in "X-Men" and violated Fox's intellectual property rights. Fox alleged that Marvel's grant of rights to Tribune was in breach of the Marvel-Fox agreement.

"As a result of the Fox litigation, Tribune discovered, among other things, that Marvel had materially misrepresented the terms and conditions of the Marvel-Fox agreement with respect to 'X-Men,' " the Tribune suit against Marvel says. "Had Tribune known the true facts, it would not have entered into the 'Deal Memorandum' and expended millions of dollars for the development, production and exploitation of 'Mutant X.' "

Additionally, Tribune says that Marvel's actions caused Tribune "to spend millions of dollars for the development, production and exploitation of 'Mutant X' and, thereafter, to spend millions more in connection with the Fox litigation and changing the content, marketing and promotion of 'Mutant X.' These changes compromised 'Mutant X' and, in part, accounted for the losses that 'Mutant X' has incurred to date." Tribune claims to have lost "millions of dollars" on the production and distribution of the series.