Warner Bros., Film Creators Settle Suit Over Profit From “Exorcist”

A courtroom showdown over Hollywood finances and 1973 horror classic “The Exorcist” was averted Monday just ahead of trial, with the settlement of a lawsuit claiming that Warner Bros. had shortchanged the film’s creators.

Director William Friedkin and producer William Peter Blatty, who wrote the bestselling novel and the screenplay, alleged that Warner Bros. had deprived them of their share of the proceeds by understating revenue from the original film since 1998 and overstating fees and marketing costs associated with a reedited 2000 version called “The Exorcist -- The Version You’ve Never Seen.”

In addition, they claimed that Warner, an arm of AOL Time Warner Inc., sold the broadcast rights to the new version too cheaply, granting them to Viacom Inc.’s CBS for $1.5 million, which the suit contended was only a fraction of its value. The suit also accused Warner Bros. of giving its corporate sibling Turner Network Television a lower-than-average license fee for airing the original film on cable -- $110,000, or the same fee it charged for films such as “Cleopatra Jones” and “The Incredible Mr. Limpet.”

The studio had described the allegations as “ludicrous.” On Monday, studio spokeswoman Barbara Brogliatti would say only: “The case has been settled, and all claims have been dismissed.”

Both sides said the settlement agreement prevented them from revealing details of how the dispute had been resolved.

“I can’t make any statement other than to say it has been settled,” said attorney Bert Fields, who represents Blatty and Friedkin.

The suit, filed in May 2001, was scheduled to go to trial this week before Los Angeles Superior Court Judge Laurie Zelon. It also named Turner Network Television and Turner Broadcasting System Inc. as defendants.

Under their original 1971 deal, Warner granted Blatty the right to 39% of the net profit of the film; Friedkin later was granted the right to 10% of the net profit.

When the decision was made to reissue the film, the suit said, Friedkin spent several months reediting the original, adding 11 minutes of footage and redoing the sound. In addition, he and Blatty gave hours of media interviews in the U.S. and abroad to promote the new version.

The reissued film went on to gross $39.7 million domestically and $110 million worldwide, making it one of the most successful re-releases ever.