The
Tenth Circuit recently issued an opinion affirming
the dismissal of a lawsuit between Stan Lee Media, Inc. and The Walt Disney Company. Stan Lee
Media, Inc. was a Colorado Company originally formed by Stan Lee in 1998, but
Stan Lee later returned to Marvel and has long since cut ties with the company.
Stan
Lee Media’s claims copyright ownership rights in characters created while Mr.
Lee was at Marvel. The claims are derived from an employment agreement between
Stan Lee and Stan Lee Media, Inc. in 1998. Stan Lee Media claims that ownership
rights in some of Marvel’s most recognizable characters, including Spider-Man,
the X-Med, the Incredible Hulk, The Fantastic Four, Iron Man, Thor, Daredevil,
and others, were transferred to Stan Lee Media in exchange for salary and other
benefits.
This
Tenth Circuit decision is the most recent stemming from numerous lawsuits
initiated by Stan Lee Media around the country claiming copyright ownership in the
Marvel characters. The Colorado trial court in this case dismissed Stan Lee
Media’s single cause of action for copyright infringement against Disney on the
basis that the complaint failed to state a claim. The Tenth Circuit affirmed
the trial court’s decision based on collateral estopple, a legal rule which prevents
re-litigation of issues that have been previously decided in other cases.
Two
cases identified by the Tenth Circuit Court precluded Stan Lee Media from
re-litigating the issue of its alleged copyright ownership. The first was a
decision from the Southern District of New York, Abadin
v. Marvel Entm’t, Inc., No. 09 Civ. 0715(PAC), 2010 WL 1257519 (S.D.N.Y. Mar.
31, 2010, determined to bar re-litigation of certain claims and issues. On
October 29, 2014, the Ninth Circuit issued an opinion and alternative basis for
affirming dismissal of Stan Lee Media’s copyright ownership claims. See Stan
Lee Media, v. Lee, Case No. 12-56733, at
*1. The Tenth Circuit agreed with the Ninth Circuit’s conclusion
that Stan Lee Media’s allegation of copyright ownership in the pre-1998 Marvel characters
failed because it did not “allege ‘enough facts to state a claim to relief that
is plausible on its face.” Stan Lee Media’s “failure to publicize, protect, or
exploit its right to profit from the characters establishes that these claims
are simply implausible.” It was on this basis that the 10th Circuit affirmed
Disney’s motion to dismiss for failure to state a claim and dismissal of the
claim.
The
Ninth Circuit’s opinion was discussed by the Hollywood reporter which referenced the pending Tenth
Circuit case above.
