Puzzle posed by Terminator auction
By Matthew Garrahan in Los Angeles
Published: December 11 2009 18:22 | Last updated: December 11 2009 18:22
The highly contested auction of rights to the Terminator film franchise could be hit by a legal complication that could bring down the price potential buyers would be willing to pay, according to people familiar with the situation.
The rights to make future Terminator films and television programmes are being sold by Halcyon, the production company behind Terminator: Salvation, the latest film in the series.
The company, which recently sought bankruptcy protection, is selling the rights in perpetuity and is seeking a price comparable with the recent $60m sale of rights to Teenage Mutant Ninja Turtles, which were by Viacoms Nickelodeon channel.
But a person familiar with the negotiations told the Financial Times that there was a possibility that James Cameron, who wrote and directed the first two Terminator films, could re-claim the rights in 2019, which will be 35 years after the release of the first movie.
US law allows writers and other creators of content to reclaim their rights 35 years after the first release of their work by exercising a termination of transfer.
Copyrights expire, said David Nimmer, an attorney with Irell & Lanella in Los Angeles and the author of Nimmer on Copyright.
However, he added that the termination of transfer statute almost never applies to motion picture content. This is because screenplay authors and directors usually sign contracts as workers for hire.
The exception to this rule concerns screenwriters and directors who write a spec script meaning one that was not originally commissioned by a studio.
Cameron did write the story on which the first [Terminator] movie was based as a spec [script], said the person familiar with the negotiations. Thats exactly why theres a problem.
When contacted by the Financial Times, Mr Cameron said it was unlikely he would seek to reclaim the Terminator rights.
Ive moved on and am interested in other things now, he said.
Halcyon also vigorously denied the likelihood of a future claim by Mr Cameron, saying there was no merit to the suggestion that the rights might revert to the director or anyone else in 2019.
The fact is that Halcyon owns the rights in perpetuity. Mr Cameron has never disputed this, nor has he or any of his representatives ever advanced the position that the rights might one day revert to him.
The only people making this claim are representatives of potential buyers who we believe are trying to chill the bidding for the franchise, Halcyon said.
The sale has attracted considerable interest in Hollywood because it constitutes a rare example of a blockbuster film franchise not controlled by a big studio.
Four studios are involved in the bidding, according to another person familiar with the negotiations.