Watchmen Legal Battle

In what many expect is only the first round of a lengthy legal war, Warner Brothers agreed to a settlement of the law suit filed by 20th Century Fox over rights to the upcoming graphic novel adaptation of "Watchmen." Although terms of the settlement were not disclosed, the New York Times reported that Fox could receive up to 8.5% of the final theatrical gross after Warner studios recovers certain costs. The percentage will be lower if sales suffer.

Fox also won a battle on the publicity front as Warner Brothers issued a statement that acknowledged that "Fox acted in good faith in bringing its claims." Fans of the graphic novel had been critical of Fox studios for delaying the release of the movie with its lawsuit against Warner.

Warner Brothers has indicated it intends to pursue legal action against the film's producer, Larry Gordon. Gordon took the film to Warner after Fox and several other studios failed to make the film.