STAN LEE SUES MARVEL

**MattBrady** · 11-12-2002, 04:28 PM

Making good on a threat made public last week, Dow Jones Newswire is reporting this afternoon that Stan Lee has filed a lawsuit against Marvel Enterprises, claiming that the company has embarked on a “shameful scheme” to deprive him of profits from its largest money makers, notably, the Spider-Man and X-Men films, and various television series.

Lee claims that Marvel has “trampled upon” his rights, according to Dow Jones, particularly a 1998 agreement that entitles him to share in the profits of productions that use his famously fierce characters. Lee's suit, filed Tuesday in Manhattan federal court, seeks 10% of profits earned from Hollywood films including the "Spider-Man: The Movie," which this spring grossed $114 million in its opening weekend. Lee, 79 years old, claims he has not made any money from the film.

Last week, Marvel revealed that Lee had threatened legal action, although they called his claim meritless and noted that it paid him an annual salary of $1 million.

According to the suit, Marvel is refusing to honor its commitment to Mr. Lee now that it has "hit the jackpot" with Spider-Man, and expects similar successes with other films, including Daredevil starring Ben Affleck. Lee also seeks a share of profits made from toys and other merchandise based on his characters.

As originally posted on November 7th, Marvel's SEC filing reads:

"Threatened Action. The Company has received a written claim by Stan Lee, Chairman Emeritus, asserting the threat of litigation, in the event the Company fails to pay him 10% of the profits derived by the Company from the profits of the movies and television programs (including ancillary rights) utilizing the Company's characters, as provided in the Employment Agreement between the Company and Mr. Lee dated as of November 1, 1998. Pursuant to the terms of the Employment Agreement, the Company is currently paying Mr. Lee a salary of $1 million per year and believes that Mr. Lee's claim is without merit. If Mr. Lee commences suit, the Company intends to vigorously defend such action."

The full SEC filing can be read on the SEC website by clicking HERE or on Marvel.com [.pdf format] by clicking HERE

The provision from Lee’s employment agreement being cited [under the Expenses/Fringe Benefits section] reads:

“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.”

J.C. Bakken · 11-12-2002, 04:39 PM

[quote]Originally posted by Matt Brady:
claiming that the company has embarked on a “shameful scheme”

*chuckles* Stan writes for them, or what?

[quote]Originally posted by Matt Brady:
"Spider-Man: The Movie," which this spring grossed $114 million in its opening weekend. Lee, 79 years old, claims he has not made any money
from the film.

So, all in all, how much is Lee gonna bring in? I seem to remember something about it's 10% of what Marvel is earning. Pluss everything else, like Blade, X-Men and everything Marvel.

But, most importantly; What is Lee gonna do with all this money? Is there gonna be an exclusive with Lee later on?

[Edited just to say, WHAT? First post on a front-page story?

Wow, ain't America awake yet? Congrats to me.

arthur pendragon · 11-12-2002, 04:48 PM

I just can't believe Marvel would trample upon anyone's rights, let alone good ol' Stan's. It just runs so contrary to the way the company has done business throughout the years.

Hunter · 11-12-2002, 04:49 PM

Woo! More Mighty Marvel Controversy.

I know this comparison isn't new or original, but it feels more and more like we're watching pro wrestling the more I hear about Marvel.

I guess bad press is still press, though. *shrug*

Lestat de Lioncourt · 11-12-2002, 04:51 PM

America's never awake hehe

I'm backin up Stan here, I love the guy and his Marvel Characters, Marvel itself even!, is the pinnacle of his lifes work. If Marvel can't honour another contract which they agreed upon, especially with the founding father of the company! then I agree that theyre acting shamefully.

Kevin T. Brown · 11-12-2002, 04:53 PM

This is all Mike Doran's fault. He joins Marvel and Stan sues them. Coincidence? I think not!

Seriously, from how the article read last week when it showed a portion of the applicable part of the contract, Stan is going to win. Besides, the Man created these characters! Without Stan Lee, there would be no Marvel as we know it! Give the man what is owed to him.
'Nuff Said!

tralfaz · 11-12-2002, 04:56 PM

if it's in his contract, he should get what ever money is due to him, regardless who is right or wrong.

arthur pendragon · 11-12-2002, 04:58 PM

Jemas responds to the suit while holding a fistful of cash, "From my cold dead hands..!"

IanZL · 11-12-2002, 05:03 PM

you really think Stan would do this for publicity for himself or for Marvel? Wow, you are way off base. As for what he is going to do with the money? What do you care? The fact that he is already wealthy isn't the point. He is entitled to it and can do whatever he wants with it. He donate it charity, start a new company, or roll around in it naked its up to him.

John Osen · 11-12-2002, 05:06 PM

[quote]Originally posted by arthur pendragon:
I just can't believe Marvel would trample upon anyone's rights, let alone good ol' Stan's. It just runs so contrary to the way the company has done business throughout the years.

Agreed!

arthur pendragon · 11-12-2002, 05:23 PM

Quesada responds to the suit, "Way to rain on everybody's parade, buddy!"

11-12-2002, 05:25 PM

[quote]Originally posted by arthur pendragon:
Quesada responds to the suit, "Way to rain on everybody's parade, buddy!"

Where's his reply?

arthur pendragon · 11-12-2002, 05:31 PM

[quote]Originally posted by ManofTheAtom:

Where's his reply?

Stan Lee responds to Quesada, "Let a smile be your umbrella, true believer!"

Cliffy · 11-12-2002, 05:31 PM

[quote]Originally posted by ManofTheAtom:
Where's his reply?

I believe that was a joke.

--Cliffy

brett · 11-12-2002, 05:34 PM

I agree.

Bakken,

What Stan does with the money is none of yours or anyone else's business. Even if he already was a billionaire, he is still entitled to at as per a contract Marvel specifically drafted for him. So, if he wants to wipe his ass with hundred dollar bills made from Spider Man and X-Men, it's his right to do so.

The only question mark looming over my head is that Mr. Joe Q and Jemas have been sooooooo vocal over the past few years about treating creators right, Marvel has changed, yadda, yadda, yadda, 'Welcome All Ye Creators Who Have Left The Fold -- This Is An All New, All Different Marvel Comics', I can't help but wonder what all those creators who have flocked over to Marvel recently are saying.

Me? I'd be scratching my head. If they can't honor a simply worded contract with Stan Lee, the man RESPONSIBLE for putting them on the map in the first place (No Stan Lee = No Spidey + No Spidey Movie = No 800 billion dollars for Sony), how then will they treat everyone else when it comes down to the bottom line?

Somehow, I can't help but see Alan Moore sitting somewhere in England nodding his head, glad he never did that FF book the Big Q proposed...

Icewing_X · 11-12-2002, 05:35 PM

Holy carp, the world has gone to Hell in a hand basket.

Stan Lee suing Marvel? I thought that would never happen.

Sigh.

~Icewing, enough to make a grown man cry

arthur pendragon · 11-12-2002, 05:38 PM

Marvel will still try to please creators that are still writing for them, or put on the best face for creators they want to work for them, but if your best days are behind you, look out!

Sparvid · 11-12-2002, 05:41 PM

If he didn't get any money from X-Men, why didn't he sue back then?

arthur pendragon · 11-12-2002, 05:44 PM

The deal Marvel got with the X-Men movie was far worse than their Spider-Man deal, plus they were unable to capitalize on the X-Men movie in a big way like they did with Spider-Man.

brett · 11-12-2002, 05:46 PM

X-Men only made 140 million whereby Spidey made 800 million. Maybe Stan figured 10% of 140 ain't that much but 10% of 800 is a nice bit of chump change. Either way, he's entitled to it as per Marvel's contract.

Ah, good old Marvel.

The more things change, the more they stay the same.

BlakSun · 11-12-2002, 06:07 PM

Wow...so it's come to this. I guess Damage Control is more than just a comic book....

Jake Ivers · 11-12-2002, 06:13 PM

The only question mark looming over my head is that Mr. Joe Q and Jemas have been sooooooo vocal over the past few years about treating creators right, Marvel has changed, yadda, yadda, yadda, 'Welcome All Ye Creators Who Have Left The Fold -- This Is An All New, All Different Marvel Comics', I can't help but wonder what all those creators who have flocked over to Marvel recently are saying.

I think this only applies to Neil Gaiman and Alan Moore.

Sean Walsh · 11-12-2002, 06:16 PM

[quote]Originally posted by arthur pendragon:
Jemas responds to the suit while holding a fistful of cash, "From my cold dead hands..!"

And minutes later, many thousands of people burst into Marvel Comics offices and successfully beat Bill Jemas to death...

Sean

Doc_Weasel · 11-12-2002, 06:27 PM

Not to be standing up for Marvel, but there are several things to note here. First, the agreement says Stan is entitled to 10% of the profits Marvel makes from the productions utilizing Marvel characters. This is not the same as 10% of the profits made from those productions. For example, any Marvel share of the profits from Spider-Man will be far, far, FAR less than the $800 million Spidey grossed. After all, it’s Sony Columbia, not Marvel, who is making money hand over fist on the movie.

Also, the agreement expressly states that Stan is not entitled to any percentage of the fees Marvel receives for licensing the characters or to any of the money made from merchandising. I did a quick search of articles written about the Sony Columbia – Marvel deal for Spider-Man and found several interesting items. A Variety article from 1999 discussing the deal contained this quote: “Marvel's Ellenbogen said the deal was significant to his company because ‘we own and control the merchandising rights -- the main source of income for Marvel will be merchandising.’”

Further, it is entirely possible that Marvel has no “profit interest” in the success of Spider-Man or other films. I can find no mention of Marvel sharing in any of the films profits in any of the articles I’ve just read. The closest thing I’ve found is a LA Times story which says Marvel’s licensing fee for Spider-Man depends on how much the movie grosses. The higher the gross, the more Marvel gets paid for licensing rights, with the amount topping out around $15 million. While this means the fee is tied to the profits, it would appear that the contract has been written so technically Marvel makes no profit from the movie. (This may have been done expressly to screw over Stan and others and may be a result of the Blade-Marv Wolfman situation.)

Finally, the agreement contains this sentence: “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.” Considering that Spider-Man was released in May 2002, the accounting period for paying Stan any share of profits from Spider-Man would end in March 2003. Marvel could easily make the argument that Stan hasn’t received anything from Spider-Man yet because the accounting period hasn’t closed yet.

I realize none of the Spider-Man specifics apply to any of the other Marvel movies, but I would be surprised if the details of those contracts are substantially different…

D.J. Coffman is your daddy · 11-12-2002, 06:28 PM

Don't worry. Stan Lee will die soon. And Jack Kirby will kick his sorry ass all over the afterlife.

Sounds like Stan has to remember some of the shady things he did in his time.... money grubbing cocksucker