Fox and Warner settle Watchmen dispute; announcement Friday

Looks like we'll be able to watch the Watchmen after all.

Warner Brothers and Fox have resolved their legal dispute over Watchmen, with the studios scheduled to present the settlement to Judge Gary Feess on Friday morning and request that the case be dismissed, The Hollywood Reporter posted on Thursday evening.

Terms of the agreement will not be disclosed, but it is said to involve a sizable cash payment to Fox and a percentage of the film's box office, the trade paper reported. Fox will not be a co-distributor on the film, nor will it own a piece of the Watchmen property going forward. The studios are set to release a joint statement announcing the agreement Friday.

Studio spokespeople would not comment to the trade paper on the settlement. Watchmen is slated to come out on March 6; the legal dispute had threatened to delay that.

Fox sued Warners in February, claiming copyright infringement based on agreements the studio had with producer Larry Gordon. Feess ruled on Dec. 24 that Gordon did not secure the proper rights to Watchmen from Fox before shopping the project and eventually setting it up with Warner. Feess' decision prompted settlement talks to heat up because Warners faced the prospect of an injunction stopping its planned release.

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