Spidey settles down

Marvel takes helm of Spider-Man joint venture

By BEN FRITZ

HOLLYWOOD -- Spidey licensing is now all Marvel.

Sony Pictures and Marvel Enterprises Tuesday released details of the settlement of their court disputes related to licensing of Marvel's "Spider-Man" character resulting from pics starring the super-hero.

Settlement calls for Marvel to take primary responsibility for joint venture the two companies set up to handle merchandising rights resulting from the movies. Comic book publisher will also reap the rewards, reporting the revenues and operating expenses of the joint venture in its own financials. Reporting will begin in the current quarter.

The two companies had previously split responsibility for "Spider-Man" movie licensing equally in the joint venture. Situation left the comic publisher, which still handled licensing related to the "Spider-Man" characters outside of the movie, in an awkward power sharing situation, as the fate of one of its best known characters' licensing was partially controlled by a major media conglom.

Last June, Marvel filed a $50 million suit claiming that Sony was attempting to disassociate Marvel from the "Spider-Man" character in retailers' minds, thus harming its own licensing opportunities.

The comic publisher and licensor also filed two later suits alleging that Sony Electronics instructed Sony Pictures to not license Spider-Man to its competitors and that Sony also deprived it of merchandising royalties from Marvel license "Men in Black."

All 3 suits settled

Settlement covers all three suits. A Marvel spokesman declined to comment on whether there were additional financial incentives beyond the licensing agreement.

He did say, however, that Marvel will now be able to begin independent work on licensing related to 2007's "Spider-Man 3," as well as Sony's other upcoming Marvel adaptations, 2005's "Luke Cage" and 2006's "Ghost Rider."

Company indicated that increased operating expenses and revenues related to running the licensing joint venture would largely balance out, stating that it will maintain its guidance of between $185 million and $195 million in operating income for 2004.

Marvel said in May that the joint venture would provide approximately $8 million in revenue leading up to "Spider-Man 2's" release.

It's unclear as to whether there will be a longer upside gain from its taking over Sony movie licensing.

Marvel shares declined slightly Tuesday, closing at $20.12.