July 20, 2007 03:30:48 GMT
T Asset, the company representing the holders of rights to "Terminator" franchise, is suing MGM for interfering negotiations on "Terminator 4" distribution.
Still in its early stage of development, "Terminator Salvation" has already faced serious problem on the way concerning its distribution rights.
Rights holders to the project are reported to have placed a lawsuit against MGM, alleging that the giant studio is interfering in their right to negotiate for the distribution of this fourth installment of the popular sci-fi action franchise.
In a complaint for declaratory relief filed Wednesday, July 18 in L.A. Superior Court, T Asset Acquisition Co., the company representing producer Moritz Borman and Halcyon Co. principals Victor Kubicek and Derek Anderson who hold "Terminator" rights, argued that MGM did not negotiate in good faith when both of them engaged in effort to reach a distribution deal for the picture.
Case began when during the negotiations MGM was claimed to make an initial offer of almost $200 million in production and marketing commitments. However, since the studio also demanded for approval over director, star, script, and budget, the proposal then fell short, leading MGM to suspend the negotiations while awaiting a counterproposal.
Later notified by T Asset on June 26 that MGM's negotiating window would close as of June 29, MGM's attorneys, beyond T Asset's expectation, sent a June 28 letter accusing T Asset of making an unreasonable "take-it-or-leave-it demand", stating the negotiating window remained open and that T Asset could not talk with other distributors.
Perceiving that MGM is attempting to "disrupt and prevent any efforts by T Asset to negotiate with any third parties", T Asset thereafter is asking the court for a permanent injunction against MGM as well as to declare MGM's first negotiation rights unenforceable and to prohibit MGM from interfering with T Assets' negotiations with other parties.
Commenting on the litigation, MGM spokesman Jeff Pryor firmly gave statement saying "MGM is completely comfortable with its rights position on the 'Terminator' franchise, and we will not allow anyone to interfere with our rights."