AnotherDayAnotherDollar
Banned
It's really interesting to see how much Marvel was just giving away their IPs back in the day. When you read the Marvel contract, you see how the deal was significantly one sided and much more beneficial to Universal than Marvel, the license holder. You then look at the contract for Harry Potter and you see how WB was really the bully in the contract, as the license holders should be. You can only assume a similar language and deal was written for the movie IP rights that Marvel was giving away in the 90s as well. Hell, a gaf conglomerate could have probably bought film IP rights to some Marvel characters back then.
We can only assume Nintendo (Nintendo IPs) and Paramount/Hasbro (Transformers) deals with Universal are similar to WBs, as well as Disney and Fox (Avatar). Marvel really was screwing the pooch back in the 90s.
Unfortunately prices and percentages are masked, but I can only assume that a much lower percentage and flat fee are paid to Marvel as compared to the others.
I think it's well worth a read if this kind of legal mumbo jumbo interests you. It kind of gives you some perspective on how a contract is written when one has the upper hand and is the big dog (Harry Potter) and when one is struggling and desperate (Marvel). If you're not interested in reading the whole thing, I'm pasting some parts of the contracts that I thought were interesting and trying to say what I think those parts mean.
Marvel and MCA (Universal) agreement for theme park rights
"Marvel, you're lucky we are engaging in a conversation with you, so that our park would host and display marvel avengers, fantastic four and xmen (and all associated characters, heroes, and villains). We will have exclusive theme park rights - worldwide if we want to. We can open another marvel universe in another one of our locations. All we need to do is designate another location to open another Marvel area in a park within 2 years of opening the previous Marvel Universe in one of our parks. We have 5 years to open said area and can continue doing this into perpetuity."
Universal exercised its right after the 2000 opening of the Marvel Universe in Orlando. ~2002 they had Marvel characters in Universal California and the only reason they lost the rights is because they decided not to create a Marvel Universe there, so "the rights reverted back to Marvel".
"Any characters Marvel develops, licenses, or acquires now or in the future can be used by Universal theme park in its Marvel Universe. If, however, you have to pay a fee, then that may be excluded, we'll see."
This is part of the rumor on why Disney is apprehensive about opening a GoTG ride in Orlando. As they will be in the IW movies - and most likely Avengers - Universal will be able to use them when that time comes and Disney/Marvel will be breaching their contract.
"Other parks can use any characters as long as they are not being used by Universal. And by the way, that means if Universal uses Dr Doom, all FF characters and villains cannot be used anywhere else. If we use Ironman, all Avengers heroes and villains associated with them are off the table. Same with XMen. Basically 95% of Marvel Characters. Except Stan Lee because he's awesome and omnipresent anyways. Oh, and also, anything that is not an "incidental element" is considered being used. I know it's a very subject verbiage, but we'll let you know when something is not 'incidental'?"
"If you find a character you can license East of the Mississippi, then the word "Marvel" cannot be used. Likewise, that word cannot be used on any park west of the Mississippi. No one can use the word Marvel except Universal."
"If Marvel buys someone whole, if it owns at least 25% of another company or has a significant board representation (subjective, no definition of what significant means), if a company is an affiliate of yours, or if you get acquired (like it happened! Lol Disney) then this contract will apply to your parent and/or subsidiaries."
Ironically the latter part is similar to the WB deal with Six Flags for DC characters, except it's if six flags gets acquired, then the contract is terminated.
Warner Brother and Universal Agreement for theme park rights
"HP theme park license will run for an initial term until 06/30/2019 and as long as your ass pays up and don't breach the contract, then you'll have an option of two 5 year extensions until 06/30/2029 which would then fulfill the contract and we'll ask for a shitload more money or take our license somewhere else. Or we'll just take our license somewhere else just for the fuck of it."
"We'll give you exclusive theme park rights for the things and the terms written in this agreement for anything within 250 miles, but that's it."
"Universal is only allowed to use Harry Potter characters and themes from the first 7 books and movies. And that is assuming we finalize the deal with JK Rowlings to acquire merchandise and theme park rights and actually go ahead and release a 7th movie. Otherwise you can't use that one either. And lol if you want to try to use anything from the multi billion dollar upcoming trilogy Fantastic Beasts and where to find them"
"If Universal creates new material for its rides, then that material will be the property of WB and the same restrictions we have put in this agreement will apply"
We can only assume Nintendo (Nintendo IPs) and Paramount/Hasbro (Transformers) deals with Universal are similar to WBs, as well as Disney and Fox (Avatar). Marvel really was screwing the pooch back in the 90s.
Unfortunately prices and percentages are masked, but I can only assume that a much lower percentage and flat fee are paid to Marvel as compared to the others.
I think it's well worth a read if this kind of legal mumbo jumbo interests you. It kind of gives you some perspective on how a contract is written when one has the upper hand and is the big dog (Harry Potter) and when one is struggling and desperate (Marvel). If you're not interested in reading the whole thing, I'm pasting some parts of the contracts that I thought were interesting and trying to say what I think those parts mean.
Marvel and MCA (Universal) agreement for theme park rights
"Marvel, you're lucky we are engaging in a conversation with you, so that our park would host and display marvel avengers, fantastic four and xmen (and all associated characters, heroes, and villains). We will have exclusive theme park rights - worldwide if we want to. We can open another marvel universe in another one of our locations. All we need to do is designate another location to open another Marvel area in a park within 2 years of opening the previous Marvel Universe in one of our parks. We have 5 years to open said area and can continue doing this into perpetuity."
Universal exercised its right after the 2000 opening of the Marvel Universe in Orlando. ~2002 they had Marvel characters in Universal California and the only reason they lost the rights is because they decided not to create a Marvel Universe there, so "the rights reverted back to Marvel".
The present inventory of the Marvel characters is set forth in the schedule to be attached or provided by Marvel promptly after execution hereof, plus any characters developed or acquired or licensed in the future by Marvel which (x) are marketed under the Marvel Banner orwere previously marketed under the Marvel Banner during the term hereof and are subsequently marketed under the Banner of a Marvel Related Company (defined below). Any characters which are licensed to Marvel by third parties subject to terms which require Marvel to pay a license fee based on revenues or which do not permit sublicensing may be excluded, at Marvels option, in the foregoing grant.
"Any characters Marvel develops, licenses, or acquires now or in the future can be used by Universal theme park in its Marvel Universe. If, however, you have to pay a fee, then that may be excluded, we'll see."
This is part of the rumor on why Disney is apprehensive about opening a GoTG ride in Orlando. As they will be in the IW movies - and most likely Avengers - Universal will be able to use them when that time comes and Disney/Marvel will be breaching their contract.
1. If no action is taken by MCA, such exclusivity shall be limited as follows:
i. East of The Mississippi - any other theme park is limited to using characters not currently being used by MCA at the time such other license is granted. [For purpose of this subsection and subsection iv, a character is being used by MCA if (x) it or another character of the same family (e.g., any member of THE FANTASTIC FOUR, THE AVENGERS or villains associated with a hero being used) is more than an incidental element of an attraction, is presented as a costumed character, or is more than an incidental element of the theming of a retail store or food facility; and,
"Other parks can use any characters as long as they are not being used by Universal. And by the way, that means if Universal uses Dr Doom, all FF characters and villains cannot be used anywhere else. If we use Ironman, all Avengers heroes and villains associated with them are off the table. Same with XMen. Basically 95% of Marvel Characters. Except Stan Lee because he's awesome and omnipresent anyways. Oh, and also, anything that is not an "incidental element" is considered being used. I know it's a very subject verbiage, but we'll let you know when something is not 'incidental'?"
"If you find a character you can license East of the Mississippi, then the word "Marvel" cannot be used. Likewise, that word cannot be used on any park west of the Mississippi. No one can use the word Marvel except Universal."
"If Marvel buys someone whole, if it owns at least 25% of another company or has a significant board representation (subjective, no definition of what significant means), if a company is an affiliate of yours, or if you get acquired (like it happened! Lol Disney) then this contract will apply to your parent and/or subsidiaries."
Ironically the latter part is similar to the WB deal with Six Flags for DC characters, except it's if six flags gets acquired, then the contract is terminated.
Warner Brother and Universal Agreement for theme park rights
"HP theme park license will run for an initial term until 06/30/2019 and as long as your ass pays up and don't breach the contract, then you'll have an option of two 5 year extensions until 06/30/2029 which would then fulfill the contract and we'll ask for a shitload more money or take our license somewhere else. Or we'll just take our license somewhere else just for the fuck of it."
"We'll give you exclusive theme park rights for the things and the terms written in this agreement for anything within 250 miles, but that's it."
(c) Books means the novels written by the Author entitled HARRY POTTER AND THE SORCERERS STONE, HARRY POTTER AND THE CHAMBER OF SECRETS, HARRY POTTER AND THE PRISONER OF AZKABAN, HARRY POTTER AND THE GOBLET OF FIRE, HARRY POTTER AND THE ORDER OF THE PHOENIX, and HARRY POTTER AND THE HALF-BLOOD PRINCE, and to the extent that, during the Term of this Agreement, Licensor acquires merchandising and theme park rights to the seventh HARRY POTTER book entitled HARRY POTTER AND THE DEATHLY HALLOWS that is anticipated to constitute the final installment in the series of HARRY POTTER books, the elements of such seventh book shall be included within the definition of Books hereunder.
(i) The character names, costumes, environmental settings, plot elements, artwork, logos and other elements depicted in the Movies (as set forth in Section 1(q) below), including all copyrights and trademarks relating thereto;
(ii) The fictional character(s) and/or other element(s) from the Books, including the representations, names and likenesses of such character(s) and/or other element(s) and all environmental settings, costumes and other indicia associated with such character(s), together with all copyrights and trademarks as exploited by Licensor relating thereto; and
(iii) To the extent that during the Term of this Agreement, Licensor acquires merchandising and theme park rights to a seventh HARRY POTTER book, entitled HARRY POTTER AND THE DEATHLY HALLOWS that is anticipated to constitute the final installment in the series of Books, and releases a seventh HARRY POTTER motion picture based upon such seventh book, that is anticipated to constitute the final installment in the series of Movies, the elements of such seventh book and seventh movie shall be included within the definition of Licensed Property hereunder.
(q) Movies means the 2001 release of the theatrical motion picture entitled HARRY POTTER AND THE SORCERERS STONE, the 2002 release of the theatrical motion picture entitled HARRY POTTER AND THE CHAMBER OF SECRETS, the 2004 release of the theatrical motion picture entitled HARRY POTTER AND THE PRISONER OF AZKABAN, the 2005 release of the theatrical motion picture entitled HARRY POTTER AND THE GOBLET OF FIRE, and the following two motion pictures provided they are produced and generally released: the tentatively scheduled to be released in 2007 theatrical motion picture entitled HARRY POTTER AND THE ORDER OF THE PHOENIX, and the tentatively scheduled to be released in 2008 theatrical motion picture entitled HARRY POTTER AND THE HALF-BLOOD PRINCE, and to the extent that during the Term of this Agreement, Licensor acquires merchandising and theme park rights to a seventh HARRY POTTER book, entitled HARRY POTTER AND THE DEATHLY HALLOWS that is anticipated to constitute the final installment in the series of Books, and releases a seventh HARRY POTTER motion picture based upon such seventh book, that is anticipated to constitute the final installment in the series of Movies, the elements of such seventh movie shall be included within the definition of Movies hereunder, provided, however, that the above release dates of the Movies are for identification purposes only and shall not be included or referred to on or in connection with the Licensed Uses, Licensed Products or any of Licensees activities pursuant to this Agreement.
"Universal is only allowed to use Harry Potter characters and themes from the first 7 books and movies. And that is assuming we finalize the deal with JK Rowlings to acquire merchandise and theme park rights and actually go ahead and release a 7th movie. Otherwise you can't use that one either. And lol if you want to try to use anything from the multi billion dollar upcoming trilogy Fantastic Beasts and where to find them"
"If Universal creates new material for its rides, then that material will be the property of WB and the same restrictions we have put in this agreement will apply"
