- 79 -
and “Fist of Fear, Touch of Death”.53 Moreover, on June 23,
1999, a representative of Gazotskie Films, Inc., informed Troma
Entertainment that SMHC “does not have, nor has it ever had, any
rights” relating to “Banana Monster” (a.k.a. “Schlock”), and
requested that Troma cease and desist its distribution of that
film title. Also, on October 23, 1999, Jack H. Harris, the
president of Worldwide Entertainment Corp., informed Troma that
SMHC’s rights in the film title “Astro Zombies” had actually
expired in 1987, and requested that Troma cease and desist its
distribution of that film.
2. Distribution Revenue and Expenses
In the course of distributing SMHC films, Troma incurred
expenses (e.g., for advertising slicks and media costs) which
SMHC either advanced or reimbursed pursuant to the TroMetro and
Troma distribution agreements. Periodically, Troma sent Crown
Capital (on behalf of SMHC) statements of revenue and expenses
and invoices regarding these expenses and the distribution of
SMHC films.54
53 Epic Productions informed SMHC that its rights in
“Headless Eyes” had also expired.
54 For example, Troma sent Crown Capital (on behalf of SMHC)
a statement of revenue and expenses as of June 30, 1998, showing
no revenues, $234,000 in expenses, and an advance payment of
$230,000. Troma also sent Crown Capital an invoice for creation
of distribution materials (including production of press and
media) for the “Wisdom” library for the period June 1 to 30,
1998, showing expenses of $44,000. Troma sent to “TroMetro-Santa
(continued...)
Page: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 NextLast modified: May 25, 2011