From Nikki Finke's Deadline Hollywood Daily:
SAVE US! Warner's 'Watchmen' In Legal Peril After Judge Won't Dismiss Fox Suit The short version is that 20th Century Fox is embroiled in a legal battle with Warner Bros. over rights to WATCHMEN. The article includes a helpful timeline.
This sounds like someone screwed up badly. Maybe Larry Gordon. Maybe Warner Bros. Who knows. This piece reads like Fox has a pretty good case on the distribution rights. The counter-argument that Fox sat on those rights for years while other studios developed the property does also suggest a certain opportunism in all of this on Fox's part, particularly considering how well the project was received at Con.
The case is also before the same judge WB had to work with on the DUKES OF HAZZARD movie suit. I'm curious to see if this ends up being a pay-off to Fox, or if we'll see a Fox logo ahead of the WB shield when WATCHMEN finally hits theaters on 03-06-09.
update: From Variety -
Fox's 'Watchmen' lawsuit heats up.
Interesting to note that Fox is so terribly concerned about their interest in "The Watchmen" that they haven't noticed that the project is simply titled "Watchmen."