Roger Rabbit Animated In Court
By Jesse Hiestand
Tuesday, March 22 2005
Tuesday, March 22 2005
Published on AllBusiness.com
Attorneys for Roger Rabbit creator Gary Wolf told a jury Monday that the Walt Disney Co. owes him $7 million for unpaid royalties.
Disney's attorneys not only disputed the claim but said Wolf actually owes Disney $500,000-$1 million because of an accounting error discovered in preparing for the lawsuit.
The trial before Los Angeles Superior Court Judge David Minning got under way with opening statements from Wolf's attorney J. Larson Jaenicke.
"This case is about self-serving, catch-me-if-you-can Hollywood accounting by the defendant," Jaenicke said. "For 10 years, (Wolf) has tried to resolve his differences with this company, and he finally decided he had no choice. If he was going to get paid fairly, he had to file the lawsuit."
Disney attorney Marty Katz told jurors that Wolf deserved credit for writing the novel that was later turned into the hit 1988 film "Who Framed Roger Rabbit" which won four Academy Awards and has grossed $330 million worldwide. But he said Wolf was now trying to reinterpret the contract in an over-reaching attempt to squeeze a few more dollars out of Disney.
"Mr. Wolf was paid everything he was owed and then some — a lot — and now he wants even more," Katz said, estimating that Wolf has earned about $2.5 million from film-related merchandising. "There's a consistent pattern of Mr. Wolf, through his attorneys, trying to get something that they didn't bargain for."
Wolf's principal claim is that his 5% royalty on merchandise should extend to promotional tie-ins where Disney and a third-party exchanged services or rights in a mutually beneficial way that did not require cash payments. Wolf believes he is owed royalties on all gross receipts, which he understands to mean "cash and other considerations or benefits."
The plaintiffs estimate that companies including Burger King and McDonald's, which offered a Roger Rabbit collectors cup, spent about $120 million promoting the film, directly benefiting Disney and entitling him to a 5% share, or about $6 million.
Katz said the contract was clear in defining royalties as money received by Disney, which was not the case with these promotions.
"Five percent of nothing is still nothing," Katz said. "Not a single studio in this town pays (royalties) on promotional agreements other than for monies received."
The latter refers to the potential precedent that could be set in this case if Wolf is entitled to collect a royalty for such no-cash agreements.
Wolf's lawsuit also claims that he is owed royalties for the licensing of his characters to Tokyo Disneyland and Euro Disney, which are not owned and operated by the Walt Disney Co.
The trial is expected to last about six weeks.
Disney's attorneys not only disputed the claim but said Wolf actually owes Disney $500,000-$1 million because of an accounting error discovered in preparing for the lawsuit.
The trial before Los Angeles Superior Court Judge David Minning got under way with opening statements from Wolf's attorney J. Larson Jaenicke.
"This case is about self-serving, catch-me-if-you-can Hollywood accounting by the defendant," Jaenicke said. "For 10 years, (Wolf) has tried to resolve his differences with this company, and he finally decided he had no choice. If he was going to get paid fairly, he had to file the lawsuit."
Disney attorney Marty Katz told jurors that Wolf deserved credit for writing the novel that was later turned into the hit 1988 film "Who Framed Roger Rabbit" which won four Academy Awards and has grossed $330 million worldwide. But he said Wolf was now trying to reinterpret the contract in an over-reaching attempt to squeeze a few more dollars out of Disney.
"Mr. Wolf was paid everything he was owed and then some — a lot — and now he wants even more," Katz said, estimating that Wolf has earned about $2.5 million from film-related merchandising. "There's a consistent pattern of Mr. Wolf, through his attorneys, trying to get something that they didn't bargain for."
Wolf's principal claim is that his 5% royalty on merchandise should extend to promotional tie-ins where Disney and a third-party exchanged services or rights in a mutually beneficial way that did not require cash payments. Wolf believes he is owed royalties on all gross receipts, which he understands to mean "cash and other considerations or benefits."
The plaintiffs estimate that companies including Burger King and McDonald's, which offered a Roger Rabbit collectors cup, spent about $120 million promoting the film, directly benefiting Disney and entitling him to a 5% share, or about $6 million.
Katz said the contract was clear in defining royalties as money received by Disney, which was not the case with these promotions.
"Five percent of nothing is still nothing," Katz said. "Not a single studio in this town pays (royalties) on promotional agreements other than for monies received."
The latter refers to the potential precedent that could be set in this case if Wolf is entitled to collect a royalty for such no-cash agreements.
Wolf's lawsuit also claims that he is owed royalties for the licensing of his characters to Tokyo Disneyland and Euro Disney, which are not owned and operated by the Walt Disney Co.
The trial is expected to last about six weeks.
