Warner Brothers' motion to dismiss Fox's lawsuit regarding the rights to produce a WATCHMEN movie was denied Monday.

A federal judge has denied a Warner Bros motion to dismiss 20th Century Fox's legal battle over the rights to develop, produce and distribute a film based on the graphic novel Watchmen.

Fox was seeking to enjoin Warner Bros from going forward with the project, and U.S. District Court Judge Gary Allen Feess on Friday refused to dismiss the lawsuit filed by Fox on February 12th of this year.

In the lawsuit, 20th Century Fox contends that it owns the distribution rights to any motion picture based on Watchmen and argues that it has held these rights for almost two decades based on agreements with producer Larry Gordon and his related business entities.

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