Horror film franchise "Terrifier" faces lawsuit

The horror film franchise "Terrifier" is facing a lawsuit related to ownership of the character Art the Clown and the rights to the films in the series.

The horror franchise, which focuses mainly on the clown-costumed serial killer, has so far included four feature-length films. They were preceded by shorts and the feature film "All Hallows' Eve," which also features the character.

Ruthless Studios has now filed a lawsuit in California against production companies Dark Age Cinema and Art the Clown LLC, accusing them of copyright infringement, trademark infringement, unfair competition, and profiting from a franchise without proper authorization.

The company is seeking monetary damages, a review of its earnings, an injunction against certain activities, and an official declaration that the copyrights to the films "Terrifier 2" and "Terrifier 3," along with related sequels, video games, merchandise, events, and other derivative projects, belong to Ruthless. The original 2016 film "Terrifier" is exempt from the claim.

The lawsuit alleges that franchise creator Damien Leone, who wrote and directed all of the films in the series, transferred ownership of the original shorts to Ruthless for $5. The agreement allegedly included trademarks, copyrights, rights to sequels and other derivative works.

According to the lawsuit, this gave Ruthless “the right to produce audiovisual works of all kinds, as well as their sequels, adaptations and all other types of derivative works based on them,” along with “all copyrights, related rights, trademarks and all other proprietary and exploitation rights” associated with those projects.

The company also claims to have financed and produced the film "All Hallows' Eve" and helped make Art the Clown a horror icon. They say they have invested years in promoting the character and securing domestic and international distribution for the film.

As part of the lawsuit, Ruthless also released an alleged excerpt from an email from Leone discussing the character's growing popularity. In the message, he allegedly wrote that "Art the Clown was getting very popular now."

Ruthless claims that Leone was given permission to make the first film, "Terrifier," only as a one-off project, and that, according to them, he acknowledged the company's ownership rights and sought their approval to make the film.

However, the company alleges that it was later excluded from the process when Leone expanded the brand and entered into deals to sell products related to the sequels "Terrifier 2" and "Terrifier 3."

They further claim that the sequels are “clearly derivative works and/or sequels of the original short film ‘Terrifier,’” citing shared characters, themes, story elements, and logo design.

The franchise is currently preparing for a fourth film, and Leone hinted earlier this year that it would be the final installment in the series.

"Over the years, we've built something special together. The cast and production team who have been with us since the beginning deserve a conclusion that recognizes their dedication, and the fans who have supported this franchise deserve something unforgettable," he said.