There are many unsubstantiated and false claims in the Barron\u2019s article. It is unfair to Marvel and its
shareholders to dismiss Marvel\u2019s position as simply attacking the messenger. Peter Paul has been convicted
of three felonies and is awaiting sentencing for his latest crime, manipulating the stock of Stan Lee Media.
His history speaks for itself. Marvel\u2019s position with respect to Mr. Paul\u2019s claims is not based on his lack of
credibility. It is based on facts in the public record.
First is the claim that Marvel is not the sole owner of every character created by Stan Lee during Mr. Lee\u2019s
lengthy tenure as a Marvel employee. Mr. Lee signed written employment agreements with Marvel in 1976
and 1980 in which Mr. Lee acknowledged and confirmed that all the work he did for Marvel from the
beginning of his employment (in 1940) was as an employee. As is customary in contracts reflecting works
made for hire, there was also a \u201cbelt and suspenders\u201d assignment to Marvel of all rights in all characters he
had previously created or would create for Marvel in the future.
The fallacy of this argument is that all previous agreements to the November 17, 1998 agreement Stan
Lee entered into with Marvel AFTER it voided Stan's lifetime exclusive agreement and assignment
(which was the successor to ALL previous employment/rights assignments with Marvel) in August
1998 as Marvel emerged from bankruptcy, all previous agreements were voided as of August, 1998-
leaving a gap of assignments by Lee between Augsut and November 1998 when Lee coerced Marvel to
replace the contract they voided two minths earlier with an unprecedented contract that paid Lee
more than any other Marvel employee while requiring Lee to only spend 10% of his time working for
Marvel and allowing him to spend 90% of his time competing with Marvel using Marvel's characters!
Stan never confirmed anywhere in an assignment or contract with Marvel that hos works were work
for hire- instead he claimed ownership of his creations in his 2002 suit against Marvel for a profit
participation no other employee ever received!
The copyright law treats work done by an employee within the scope of his employment as a \u201cwork made
for hire\u201d which means the employer is automatically the author and owner for copyright law purposes.
Therefore, Mr. Lee never owned any of the characters he created for Marvel. Since he never owned them, he
could never have transferred them to anybody. Mr. Lee himself has always acknowledged that the Marvel
This is another falsehood- merely review paragraphs 14, 15 and 39 of Stan Lee v Marvel Characters, 2002 Manhattan Federal Ct where Lee states \u201che expected to share in all profits derived by Marvel from his world famous characters which had been conditionally assigned by Lee to Marvel under the Nov 1998 agreement for that purpose\u201d
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