Houston Chronicle

Disney sues for rights to Marvel characters

- By Brooks Barnes

LOS ANGELES — Moving to defend its Marvel superhero franchises, the Walt Disney Co. on Friday filed a flurry of lawsuits seeking to invalidate copyright terminatio­n notices served by artists and illustrato­rs involved with marquee characters like Iron Man, Spider-Man and Thor.

Daniel M. Petrocelli, a highpowere­d Los Angeles litigator, filed the complaints on Disney’s behalf in federal courts in New York and California.

The dispute started in the spring when a prominent intellectu­al property lawyer, Marc Toberoff, served Marvel Entertainm­ent, which is owned by Disney, with notices of copyright terminatio­n on behalf of five clients. They include Lawrence D. Lieber, 89, a comics writer and artist known for his 1960s-era contributi­ons to bedrock Marvel characters. Lieber’s older brother, Stan Lee, was chief writer and editor of Marvel Comics. Lee died in 2018.

Toberoff ’s other clients are the estates of comics illustrato­rs Steve Ditko and Don Heck, and heirs of writers Don Rico and Gene Colan. They are seeking to reclaim rights related to the Marvel characters they had a hand in creating, including Doctor Strange, Black Widow, Hawkeye, Captain Marvel, Falcon, Blade and the Wizard — several of which have become star revenue generators for Disney, appearing in films and television shows, along with a plethora of merchandis­e.

The reclamatio­n attempts stem from a provision of copyright law that, under certain conditions, allows authors or their heirs to regain ownership of a product after a given number of years. Such efforts turn on whether authors worked as hired hands or produced the material on their own and then sold it to publishers. The Copyright Revision Act of 1976, which opened the door to terminatio­n attempts, bans terminatio­n for people who delivered work at the “instance and expense” of an employer.

“Since these were works made for hire and thus owned by Marvel, we filed these lawsuits to confirm that the terminatio­n notices are invalid and of no legal effect,” Petrocelli said by phone. (Petrocelli is also representi­ng Disney in its legal fight with Scarlett Johansson, who sued the company in July over pay connected to ticket sales for “Black Widow.”)

For instance, Disney’s complaint against Lieber contends that “Marvel assigned Lieber stories to write, had the right to exercise control over Lieber’s contributi­ons and paid Lieber a perpage rate for his contributi­ons.” Those conditions render his contributi­ons “work made for hire, to which the Copyright Act’s provisions do not apply,” according to the complaint.

Toberoff sharply disagrees. “At the time all these characters were created, their material was definitely not ‘work made for hire’ under the law,” he said in an email in response to Disney’s filings. “These guys were all freelancer­s or independen­t contractor­s, working piecemeal for car fare out of their basements.” Hence, not “traditiona­l, full-time employees,” he said.

“At the core of these cases is an anachronis­tic and highly criticized interpreta­tion of ‘workmade-for-hire,’ ” Toberoff said in a separate email, adding that the interpreta­tion “needs to be rectified.”

The terminatio­n notices expressed the intent to regain copyrights to some creations as early as 2023. If successful, Toberoff ’s clients would receive a portion of profits from new works based on any of the copyrighte­d material.

Disney is no stranger to intellectu­al property fights. The company spent 18 years battling a rights-infringeme­nt case involving Winnie the Pooh, ultimately winning. Disney pushed so hard for an extension of copyright terms in 1998 that the resulting law was derisively named the Mickey Mouse Protection Act. Brothers who wrote the original screenplay to the 1987 film “Predator” are sparring with Disney over the franchise; the brothers, Jim and John Thomas, are seeking to recapture rights.

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