Evergreen Media Group, which licensed rights to the filmmakers and Warner Brothers' for their sleeper hit "The Conjuring," has reportedly filed a lawsuit in Texas to stop further films in the franchise. Evergreen Media holds the rights over the case files of real-life paranormal investigators Ed and Lorrain Warren and licensed a movie version to Warners' New Line label.
Evergreen Media says Warners was only granted rights on a "very limited, selection of the Case Files – i.e., less than one percent (1%) of the total number of Case Files – and the Warrens' life stories, in exchange for a purchase price for each theatrical production or use of those select Case Files as well as a crediting and employing Tony DeRosa-Grund as producer."
The plaintiff claims Warners "now seek to reap all of the profits from The Conjuring while denying their financial obligations" by "failing to pay for the underlying rights and stealing those rights to make additional films, both theatrical films covered by the agreements as well as direct-to-video films that are not covered by the agreements."
This is a direct challenge to both "The Conjuring 2" scheduled for October 2015 and the spin-off film "Annabelle" about the haunted doll. DeRosa-Grund is upset by an alleged refusal for payment and credit over these projects, and alleges his producer agreement entitled him to 5% of gross profits of the first film which made $318 million at the global box-office.
What's more confusing? This filing in a Texas court happened whilst both parties are in the midst of a binding arbitration proceeding in Los Angeles.
Source: THR Esq