In Re Marvel Entertainment Group, Inc.

254 B.R. 817, 2000 U.S. Dist. LEXIS 16353, 2000 WL 1677764
CourtDistrict Court, D. Delaware
DecidedNovember 6, 2000
DocketCiv.A. 97-638-RRM
StatusPublished
Cited by1 cases

This text of 254 B.R. 817 (In Re Marvel Entertainment Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Marvel Entertainment Group, Inc., 254 B.R. 817, 2000 U.S. Dist. LEXIS 16353, 2000 WL 1677764 (D. Del. 2000).

Opinion

OPINION

McKELVIE, District Judge.

This is a bankruptcy case. Marvel Entertainment Group, Inc. and certain subsidiaries, including Marvel Characters, Inc., filed petitions for relief under Chapter 11 of the United States Bankruptcy Code on December 27, 1996. On November 11,1997, this court withdrew the reference from the bankruptcy court and took jurisdiction of the Marvel bankruptcy. This court confirmed a plan of reorganization for Marvel on July 31, 1998 and retains jurisdiction over matters related to the bankruptcy.

New Line Cinema Corporation, the successor in interest to Katja Picture Corporation, obtained a license from Marvel Entertainment on December 24, 1993 to produce one or more live action motion pictures based on a character called Blade. The Blade story includes other fictional entities from Marvel’s panoply of characters, including Deacon Frost.

Marvin A. Wolfman is a comic book script writer and a former employee of Marvel.

On January 24, 1997, Wolfman filed a pro se proof of claim (“Claim 342”) in the bankruptcy proceeding of Marvel Entertainment Group and Marvel Characters asserting ownership over seventy-five fictional characters including Blade and Deacon Frost. On July 21, 1998, Marvel filed an omnibus objection to a number of claims, including those brought by Wolfman. Wolfman did not file a written response to the objections or appear at the August 20, 1998 omnibus hearing in defense of his claim. Consequently, this court entered an order expunging the claim.

On August 20, 1998, Wolfman filed a complaint in the District Court for the Central District of California against Marvel Entertainment, Marvel Characters, and New Line Cinema Corporation seeking damages for, inter alia, copyright infringement, unfair competition, and interference with prospective economic advantage. Eight days later, Wolfman filed a voluntary dismissal of the suit against Marvel Entertainment and Marvel Characters. On August 30, 1998, the Central District of California entered an order dismissing Wolfman’s claims without prejudice.

On October 26, 1998, Wolfman filed a motion with this court for reconsideration of the August 20, 1998 Order expunging Claim 342 and a motion for leave to pursue his claim in the Central District of California. On January 7, 1999, this Court grant *821 ed the motion for reconsideration and denied Wolfman’s motion for leave to pursue Ms claim in the Central District of California.

On January 27, 1999, Marvel Characters commenced an action against Wolfman seeking a declaration that Marvel Characters was the sole and exclusive owner of Blade and Deacon Frost and damages for Wolfman’s violation of § 362 of the Bankruptcy Code, tortious interference with contract, and defamation.

On February 24, 1999, Marvel and Wolf-man entered into a stipulation agreeing to resolve the disputes from the Wolfman litigation in the Central District of California and the Marvel Characters litigation in the District of Delaware in the context of Claim 342 in this court. On August 4, 1999, New Line intervened in the litigation on the side of Marvel objecting to Claim 342 and requesting a declaration that Marvel Characters is the sole and exclusive owner of Blade and Deacon Frost.

This court held a three-day non-jury trial on the issue of ownership over the disputed characters on November 15, 16, and 17, 1999. At trial, Wolfman asserted ownership over seventy-one characters. 1 This is the court’s post-trial opinion on those issues.

I. FACTUAL BACKGROUND

The court finds the following from the evidence at trial.

This is a dispute about the ownership of certain characters created by Wolfman throughout his career. The court will first provide a chronological overview of Wolf-man’s career, then provide a discussion of the development of the particular characters in the proof of claim.

A. Wolfman’s Career

Marvin Wolfman is a writer and creator of fictional stories and characters. Wolf-man has used his stories and characters in a variety of media contexts including print, television, and movies. Primarily, however, Wolfman has written and produced comic books.

1. Wolfman’s Fanzines

In the early part of his career, from 1963 to 1968, Wolfman created and published a series of short fan magazines called fanzines. Wolfman published the fanzines periodically and sold them commercially; they contained illustrated stories, written stories and articles organized around a specific theme. Wolfman’s fanzines, titled “The Foob,” “Super Adventures,” “What Th_?,” and “Stories of Suspense,” covered different genres including comedy, super hero adventures, horror, and suspense. Although Wolfman published these fanzines, he was only one of many contributing authors and artists.

Wolfman stated that all of the authors that published with his fanzines retained the rights to their individual stories. As evidence of this relationship, Wolfman testified that in 1965 he published a story by Stephen King titled “In a Half World of Terror” in the fanzine, “Stories of Suspense.” Wolfman further testified that despite publishing this story in his fanzine, Wolfman held no ownership rights in the story or the characters.

2. DC Comics, Skywald, and Warren

In 1968, DC Comics hired Wolfman as an independent contractor to write stories and scripts for its comic books. In this time frame, DC Comics and Marvel Comics were two of the largest publishers of comic books. As a freelance writer, Wolf-man wrote stories for characters already in use at DC Comics. Wolfman continued his freelance work with DC Comics until at least 1971. According to Wolfman, he was aware of DC Comics’ policy regarding ownership of characters from the first day he submitted a story to the company. *822 Wolfman states that Murray Boltinoff, the editor to whom Wolfman first submitted material, informed Wolfman that DC Comics would retain the rights to any story or character submitted and ultimately bought by the company.

Concurrent with his freelance work at DC Comics, Wolfman had other independent contracts. Wolfman wrote comic book stories for Skywald Publishing Co. and Warren Publishing Co. Throughout this time, Wolfman continued to generate stories and characters on his own for future use in comic books.

Wolfman testified that he retained ownership rights in several of the characters that he created and published with these smaller companies. As an example, Wolf-man testified that he created a character called the Love Witch that he originally published in “Psycho,” a Skywald Publication. Further, Wolfman stated that in 1989, Malibu Comics, believing that it had purchased the rights to the Love Witch in a Skywald bankruptcy auction, attempted to reprint Wolfman’s creation. Wolfman stated that he and Malibu reached an agreement whereby Malibu would pay Wolfman a nominal fee for use of the story, put the copyright to the story in Wolfman’s name, and credit the artist of the redrawn story on the cover of the book.

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Bluebook (online)
254 B.R. 817, 2000 U.S. Dist. LEXIS 16353, 2000 WL 1677764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marvel-entertainment-group-inc-ded-2000.