In 1993, Marvel had licensed to Twentieth Century Fox Film Corporation (“Fox”
the rights to create, produce, distribute and promote live action feature length motion pictures based upon the comic book characters known as the “X-Men.” Under this license, Fox produced a feature film “X-Men” which was released theatrically in July of 2000.
In August of 2000, Marvel began developing the idea for a new television series that was to feature new Marvel characters which, as a result of genetic experiments, displayed physical mutations. On August 9, 2000, Marvel entered into an agreement with Tribune Entertainment Company, Inc. for the production of a weekly television series of hour-long episodes based upon this concept. In January of 2001, promotional materials relating to this series, ultimately entitled “Mutant X,” were distributed to the entertainment industry.
Fox claimed that the new series was merely a thinly veiled version of “X-Men.” It sent Marvel a letter dated March 19, 2001 asserting that the production and distribution of the “Mutant X” series violated its rights. The letter then stated “Fox hereby demands that any further development, production and distribution of ‘Mutant X’ cease immediately and Fox will take all appropriate action to enforce its rights, and will seek such remedies as may be necessary to protect itself against such a flagrant and willful breach of our agreement.”