Rights to Dick Tracy Disputed In Bankruptcy Court
The Tribune Company has sought a bankruptcy court ruling finding that the company owns the intellectual property rights to Dick Tracy instead of Warren Beatty.
In 1990, the movie “Dick Tracy” starring Warren Beatty and Madonna came out. At the time, Warren Beatty was the bee’s knees in Hollywood, which is to say he was a huge start. As a star, he was able to negotiate a unique contract that gave him far more rights than most actors would ever get.
The contract in question included language to the effect that Beatty owned the right to the Dick Tracy cartoon character if he shot the original movie and then began shooting a second movie, television show or special featuring the character within five years. If he did not, Tribune could give him notice that it intended to take back the rights to the character. Beatty would then have another two year period to start shooting.
Nearly 20 years later, the parties are still fighting over who owns what. In a new twist, the Tribune Company has filed bankruptcy. As part of that case, it has asked the bankruptcy judge to rule that Beatty has no rights. With millions of dollars on the line, Beatty is fighting the move.
While the facts of the case are obviously interesting, the action points out something else about bankruptcy court. A bankruptcy court judge has the power to invalidate contracts. If a judge finds a particular contract is providing a debtor with little benefit and lots of negative baggage, the court can just void it. This is a huge power and one that can be used to short circuit years of litigation. Some parties will even file for bankruptcy protection just to get such matters resolved.
Who owns the rights to the Dick Tracy character? Nobody really knows at this point. What is clear is the bankruptcy court will look into it and make a decision. Whether that favors Beatty or the Tribune Company is something only the judge knows.