Burnett Settles Dispute Over “Apprentice” Fees

In the end, they saw the reality: The product placement market was big enough for both of them.

A nasty legal scrap between reality TV king Mark Burnett and Madison Road Entertainment, a Los Angeles production firm, ended with a whimper Friday. The two sides agreed to amicably settle their dispute over the lucrative advertising fees behind NBC’s so-called reality show “The Apprentice,” which stars Donald Trump.

The sudden harmony was in stark contrast to the lawsuits filed two months ago. Burnett, the creator and executive producer of the hugely popular “Survivor” and “The Apprentice” franchises, took the first swing, filing a suit March 3 that accused Madison Road Entertainment of fraudulently misrepresenting its relationship with him.

Burnett alleged that the firm, which helped lure companies to advertise their products on “The Apprentice” demanded exorbitant fees and pocketed some of the money that belonged to him. Madison Road countersued, accusing Burnett of defamation, libel and “sheer greed and arrogance.” Madison Road demanded at least $40 million in damages.

In separate interviews Friday, Madison Road Chief Executive Jak Severson and Conrad Riggs, Burnett’s business associate and an executive producer on “The Apprentice,” said that soon after the volley of lawsuits, the two sides sat down to see whether they could find a resolution.

“We quickly figured out that we shared more common ground than we had differences,” Severson said. “So we asked ourselves: How do we get this behind us?”

He said both sides realized that there was little to gain from knocking each other around in court. “After we sat down, it really reversed course rather quickly,” Severson said. “We’re back in business with Mark Burnett Productions.”

Burnett was unavailable for comment. His office said he was on location shooting a new reality show for CBS called “Rock Star: INXS.”

Riggs said, “We thought that it would be better to find opportunities to work together rather than continue to work against each other.”

The settlement, Severson said, allows Madison Road to recruit companies that want to have their products showcased in “The Apprentice.” Madison Road will work on at least two episodes of “The Apprentice” that will air sometime in 2006.

The agreement also provides that the two companies work together to develop and co-produce a new unscripted television series. Neither side wanted to discuss Madison Road’s concept for the new show.

“In this competitive world of reality TV where people steal each other’s ideas, it’s probably best not to discuss it,” Riggs said.

Severson’s firm placed four companies in “The Apprentice.” Three aired last fall during the show’s second cycle: Procter & Gamble Co.’s Crest, Levi Strauss & Co.’s Levis and Mars Inc.’s M-Azing bar. The fourth, Sara Lee Corp.’s Hanes brand, ran just two weeks ago.

Madison Road also has a deal with Brian Grazer’s Imagine Television production firm to co-produce a show called “Treasure Hunters.”

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Times staff writer Richard Verrier contributed to this report.