Latest Lawsuit: DMCH Sues NBC Universal over DMC Royalties

[Mark D]

https://www.roadandtrack.com/news/a42284535/the-delorean-is-at-the-center-of-a-new-lawsuit/


The DeLorean Motor Co. is suing NBCUniversal over claims of unpaid royalties, LA Times reports. DMC purchased the intellectual property and trademarks for the DeLorean DMC-12 back in 1997, and now claims that NBCUnviersal is in breach of that standing contract. More specifically, DMC alleges that it is entitled to 5 percent of the revenue from merchandise and other commercial branding exercises related to the "Back to the Future" films and the time-traveling DeLorean. That figure is based on a deal that John DeLorean and Universal Studios agreed upon back in 1989. NBCUniversal has so far denied the allegations raised in the lawsuit.

"Despite NBCUniversal's continuous use of the license originally granted to Universal Studios, and although NBCUniversal has continued to pay out some royalties, NBCUniversal has failed to fully pay DMC for such use per the 1989 agreement," the lawsuit says.

DMC specifically pointed to the recent film Ready Player One as an example of the DeLorean being used on-screen without the company's express permission. The lawsuit does not state how much money DMC believes it is owed from NBCUniversal.

This isn't the first time that royalty payments related to the DeLorean have resulted in a court battle. The DeLorean estate and DMC went to federal court in New Jersey over who had the right to payments from NBCUniversal. DMC ultimately won a motion to dismiss the case. That's probably not the best precedent for NBCUniversal, but we'll have to wait and see how things shake out in court.



I wonder if NBC Universal has intentionally stopped payment due to the recent questions regarding the true ownership of the 5% BTTF royalties, and DeLorean IP rights in general. Or could this just be an oversight by NBCUniversal and a random coincidence?

A few months back when DMC reimagined was sued by Karma, side-discussions came up about the true ownership of the brand rights, and there was rehashing the previous lawsuits between DMCH and Sally Baldwin, etc.

https://dmctalk.org/showthread.php?19454-Karma-Automotive-LLC-sues-Reimagined-Automotive-LLC

It seems the burden of proof is back on DMCH that they actually own the rights to the BTTF royalties, so it will be interesting to see how they prove this.

If they fail to prove ownership of the royalties and IP rights in this case, what would that mean for DMCH, DMC reimagined, and use of the brand/logo/name in general?

[r00b]

It would be funny if they had to return the royalties they stole :hysterical:

[David T]

You can be sure they would not have instigated this action if they did not have a solid case. This kind of litigation is expensive. Most of the time these actions end in a settlement anyway with confidentiality agreements so don't expect to learn much.

[Iznodmad]

DMCH is royally fucked. They finally have to fight a bigger fish. A whale sized fish that won?t settle. It will end with DMCH having to pay back millions. It will bankrupt them and someone can swoop in and pick up the pieces. There is a huge reason there has been total radio silence. They finally have to pay for their sins. Literally and figuratively. Time for a new beginning.

[MrChocky]

You know what, even though I disagree with a bunch of stuff DMCH have done (and in total it honestly would look petty if I named it all), I wish them the best of luck. There's been way too much negativity recently. I'm sure a satisfactory agreement can be worked out.

[Michael]

You know what, even though I disagree with a bunch of stuff DMCH have done (and in total it honestly would look petty if I named it all), I wish them the best of luck. There's been way too much negativity recently. I'm sure a satisfactory agreement can be worked out.

69305

[81dmc]

I guess buy all NOS parts you need while you still can?

[mhanch]

I guess buy all NOS parts you need while you still can?

Everything gets sold during receivership. It's a Delorean Tradition.

[Rich]

I think this update applies to the DMC lawsuit mentioned in this thread. Last month NBCUniversal requested swift dismissal of DMC's lawsuit on all points.

Yesterday the federal court denied NBCU's motion to dismiss the trademark infringement suit. So DMC can pursue its trademark case. But DMC can't sue DMCH for breach of contract in this matter.

NBCUniversal must face DeLorean trademark trial over 'Back to the Future' merchandise (https://www.reuters.com/legal/litigation/nbcuniversal-must-face-delorean-trademark-trial-over-back-future-merchandise-2024-02-22/)

Feb 22 (Reuters) - NBCUniversal lost a bid in California federal court on Thursday to defeat a trademark lawsuit over its use of the iconic DeLorean from "Back to the Future" on merchandise and tie-ins for the film series.

NBCU failed to convince U.S. District Judge David Carter that it did not infringe DeLorean Motor Co's trademarks, paving the way for a trial on the trademark claims. Carter ruled that DeLorean lacked standing to claim that NBCU broke its 1989 contract with the carmaker, however.


Here's the text of the court decision (https://fingfx.thomsonreuters.com/gfx/legaldocs/znpnkjbdevl/NBCUNIVERSAL%20DELOREAN%20TRADEMARK%20LAWSUIT%20sj .pdf). All 15 legal pages of it.

[mike123]

Here's the text of the court decision (https://fingfx.thomsonreuters.com/gfx/legaldocs/znpnkjbdevl/NBCUNIVERSAL%20DELOREAN%20TRADEMARK%20LAWSUIT%20sj .pdf). All 15 legal pages of it.

Per this document, it seems it is now legally established fact that the things hanging off the back of the BTTF car are "thrusters", and not vents like we all assumed. This explains how the car got up to 88 in the mall parking lot, versus needing a half-mile and a tailwind like I think my car requires :/

[GS450-Junkie]

Has DMCH ever produced any paperwork saying they own the naming rights? Otherwise, it kind of looks like they just bought a bunch of parts in 2000.

If Universal wins this case, how would it affect the relationship between DMCH and Hotwheels?

[Mark D]

Per this document, it seems it is now legally established fact that the things hanging off the back of the BTTF car are "thrusters", and not vents like we all assumed. This explains how the car got up to 88 in the mall parking lot, versus needing a half-mile and a tailwind like I think my car requires :/

Sort of... my understanding was that pre-hover conversion they are vents for the plutonium powered nuclear reactor. Only until the very end of the film when we see the car fly for the first time to the vents ever light up inside as thrusters to propel the car in flight.

[r00b]

If Universal wins this case, how would it affect the relationship between DMCH and Hotwheels?

It probably wouldn't change anything, Hotwheels could have made the car and used the original DMC logo as they deemed fit since it's in the public domain. The don't because DMCH claims they own the logo.