MARVEL, LEE SETTLE

[MattBrady]

Press Release

Marvel and Stan Lee Settle All Outstanding Litigation

Marvel Enterprises, Inc. announced today that it has settled all pending litigation with Stan Lee. The settlement agreement covers the lawsuit filed by Mr. Lee in November 2002 in which Mr. Lee claimed entitlement, under an agreement with Marvel, to a participation in Marvel's profits from various sources, including the Spider-Man movies and other film and television productions that utilize Marvel characters. The settlement covers Mr. Lee's participation claim for both past and any potential future payments. Specific terms of the settlement agreement were not disclosed.

John Turitzin, Marvel's General Counsel, said, "Stan is one of the founders of today's comic book industry. We are pleased with the settlement and are happy to have resolved all of our disputes with him."

Eric Green of Resolutions, LLC mediated the settlement.

Lee’s suit, of course, was filed in November of 2002, and in it Lee claimed that Marvel had embarked upon a “shameful scheme” to deprive him of monies from the film versions of characters he’d had a hand in developing – a stipulation which was written into his contract in 1998:

“f) In addition, you shall be paid participation equal to 10% of the profits derived during your life by Marvel (including subsidiaries and affiliates) from the profits of any live action or animation television or movie (including ancillary rights) productions utilizing Marvel characters. This participation is not to be derived from the fee charged by Marvel for the licensing of the product or of the characters for merchandise or otherwise. Marvel will compute, account and pay to you your participation due, if any, on account of said profits, for the annual period ending each March 31 during your life, on an annual basis within a reasonable time after the end of each such period.”

In January of this year, the Court sided with Lee, saying in a partial summary judgment that Lee was indeed owed money from the films. At the time, Marvel claimed they would appeal the Court’s decision.

The case became fairly high profile, both within and outside of the comics market, as 60 Minutes featured Lee on two occasions, one prior to the suit, which, some claim, Lee's expressions suggested he was troubled about his relationship with Marvel in light of the very successful string of movies; and one after the suit had been filed.

Both the announcement of Lee's settlement, and that Marvel has entered into a production deal with Paramount which will see Marvel producing its own movies came hours before Marvel released it's Q1 2005 numbers, which noted a $10 million charge related to the matter.

Trying to draw lines between the newsflurry, the deal between Marvel and Paramount, as well as the over $500 million in financing, allowing Marvel to produce its own movies means that movies just became much larger potential profit generators for Marvel than they were previously. With Lee's settlement for all past and future Marvel movies (as mentioned in the Q2 numbers), in place, one could easily assume that Lee will be effectively cut out of this larger profit pie from which Marvel's new role as movie producer could result.

[WebHobbit]

Hmmmm....interesting lack of numbers. Ah well maybe there will be another 60 Minutes interview now?

[bishop-m]

Stan Lee IS Marvel. It was a shame to see this happen. Glad that it has been settled.

[redskindavyd]

Glad to hear they got things settled.

[MikeD]

Originally posted by WebHobbit
Hmmmm....interesting lack of numbers. Ah well maybe there will be another 60 Minutes interview now?

Doubt it. These types of settlements usually keep the financial terms confidential, and both parties sign agreements to keep it that way. It's standard business practice.

[sniperboy2]

Stan and Jack Kirby pretty much built what we know is the Marvel Universe. It was really sad to see someone like Stan having to fight for what he is rightfully owed. There would be no Marvel without the contibutions of Stan and Jack. Hell, Marvel is still printing the tag line "Stan Lee Presents..." on all of its books. Where is the justice? Marvel is not the same company creative wise it was ten years ago. It had a lot higher sales than it does now and it had a lot more respect for its creators. If it did, Stan would never be writing books for DC Comics. This is just wrong; I tell you. Wrong! Nuff' said!

[ChipStark]

I'm glad that's settled. Stan Lee will always be my favorite comic book creator. Now I can enjoy "House of M" without feeling guilty.

[djshalope]

Originally posted by sniperboy2
Stan and Jack Kirby pretty much built what we know is the Marvel Universe. It was really sad to see someone like Stan having to fight for what he is rightfully owed. There would be no Marvel without the contibutions of Stan and Jack. Hell, Marvel is still printing the tag line "Stan Lee Presents..." on all of its books. Where is the justice? Marvel is not the same company creative wise it was ten years ago. It doesn't have the same respect for its creators like it used to. If it did, Stan would never be writing books for DC Comics. This is just wrong; I tell you. Wrong! Nuff' said!

yeah, 10 years ago marvel comics were real sweet. NOT. they were about 200% worse than they are now. but seriously i mean marvel is a company. not a family. this is what companies do - try to make dough and keep it all. im not surprised or disenchanted by any of this. if people reading this are, they should rethink what "comics industry" means because like movies its not all about the creative message.

[Alfonso]

Originally posted by MattBrady
allowing Marvel to produce its own movies means that movies just became much larger potential profit generators for Marvel than they were previously.

Oh god no, as if all their product wasn't Hollywood-friendly enough already.

[Erik K]

I'm really happy for Stan. But I'm sad that Jack Kirby didn't live to receive the rewards due to him....

[Mister]

Personally,
with such negative legal chapters all just about money money money with Stan Lee, as a Marvel movie fan and comic book fan, I no longer look forward to anymore of his cameos in movies or his comments or presence in any other way

besides he didn't create Captain America, the original Human Torch, or the Sub-Mariner, the real foundations of the whole Marvel universe, from which he would be nothing without

[MattBrady]

Originally posted by sniperboy2
Hell, Marvel is still printing the tag line "Stan Lee Presents..." on all of its books.

Which ones? I haven't seen it for years...since the '98 contract, IIRC...

MattB

[The Shadow]

Originally posted by Alfonso
Oh god no, as if all their product wasn't Hollywood-friendly enough already.

LOL

That's what I was thinking. At least this expalains why Supreme Power went to the Marvel Knights line.

[The Shadow]

Originally posted by Mister
Personally,
with such negative legal chapters all just about money money money with Stan Lee,

But don't you think he was justified? It was IN HIS CONTRACT... if YOU had a contract and someone owed you large sums of money wouldn't YOU fight for it too?

Originally posted by Mister
besides he didn't create Captain America, the original Human Torch, or the Sub-Mariner, the real foundations of the whole Marvel universe, from which he would be nothing without

But that's not the issue here! LOL.

And I think Spider-Man and now Wolverine have suplanted Namor and the original Human Torch as the foundation!

[rogue_tomato]

I can see both sides of the story here, but when it comes down to it...
IT'S IN HIS FREAKIN' CONTRACT MARVEL!
So what if you didn't know how well the company would do in the mainstream marketplace... both sides agreed on it and placed it in writing! geez...

[rogue_tomato]

Originally posted by The Shadow
But don't you think he was justified? It was IN HIS CONTRACT... if YOU had a contract and someone owed you large sums of money wouldn't YOU fight for it too?

damn, you beat me to it :P

[Corwin]

Mister wrote:
"besides he didn't create Captain America, the original Human Torch, or the Sub-Mariner, the real foundations of the whole Marvel universe, from (sic) which he would be nothing without."


I see this board remains the last bastion of ignorance, as you haven't the slightest clue as to what you're talking about.

The new Marvel Universe Circa 1961 was WELL into it's launch before Cap was unfrozen, same for the FF's run before Subs had his memory restored and the Original Human Torch was zero factor in the new Marvel Universe. So, basically, they are in no way the foundations of the Marvel Universe.

So, go ahead and regale us with more of your uninformed opinions about Stan Lee and Marvel History.

Spider-Man, The FF, DareDevil, Thor, Hulk, The Avengers, Iron Man etc. all have ONE creator in common...and it isn't Jack Kirby...it's Stan Lee, a man who as Editor-in-Chief wrote as many as 18, that's right EIGHTEEN stories a month, establishing and juggling Marvels Continuity in his head.

Learn your history and know what you're talking about before popping off, please.

-Corwin

[Dman]

I'm happy for Stan, still sucks that Siegel , Kirby, Shuster and others never saw that kind of money from there creations.

[joebrown]

Originally posted by MattBrady
Which ones? I haven't seen it for years...since the '98 contract, IIRC...

MattB

Matt, it was on Ultimate Spiderman last week...it seems to pop up here and there, but it's never very consistent...or maybe it is and I just haven't noticed.
jb.

[Vyper]

Originally posted by Alfonso
Oh god no, as if all their product wasn't Hollywood-friendly enough already.

That's not the point - by becoming a producer, Marvel no longer has to pay production fees to movie companies, thus saving several million per each movie it produces.

[Tiger47]

Originally posted by joebrown
Matt, it was on Ultimate Spiderman last week...it seems to pop up here and there, but it's never very consistent...or maybe it is and I just haven't noticed.
jb.

I just checked some recent comics, and "Stan Lee Proudly Presents" appears on Uncanny X-Men, New Thunderbolts, and a few others, and in the credits of FF, Stan Lee and Jack Kirby are listed as "it". Either way, Stan's name still appears in every marvel comic, as the fine print in each issue lists him as Chairman Emeritus.

[AlexLothos]

I'm glad to hear things settled. I hope neither side have discord against each other and I hope they continue to work well together. Stan Lee is Mr. Marvel. It's hard to imagine him barred from Marvel or Marvel movies.

[Michael Tierney]

I wonder which came first... the Stan Lee settlement or the Marvel Movie Production deal?

I hope Stan isn't now saying, "Dang! If I knew THAT....!"

[Bakema NL]

The man deserves every penny of this money. How many people earn and have earned a decent living because of what he created.....and yes, together with some others.

Excelsior Mr. Lee.

[Chris1]

Well, like someone else pointed out, you're never going to find out how much he got. Certainly, not in a 60 minutes interview.

Has Stan done well compared to the other comic creators of his generation? Yes. But that doesn't mean he doesn't deserve the money.