'Smallville' Lawsuit Settled -- Test Case for Vertical Integration THR
"Smallville" co-creators and writers Miles Millar and Alfred Gough have settled their lawsuit against Warner Bros. over how WBTV handled finances on the long-running Superman show, according to The Hollywood Reporter's Hollywood, Esq.
An agreement in principle has been reached to end the lawsuit, the story says. The case alleged that Warner Bros. had shortchanged the show's profit participants with sweetheart license-fee deals between the studio and its sibling TV networks, the piece reports.
According to the article, "The lawsuit was one of the big ones that tested vertical integration in the entertainment industry. Filed in 2010, the lawsuit contended they were deprived of significant profits when WBTV allegedly undersold the series to affiliates the WB Network and then The CW instead of licensing the series to outside companies."