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Hello and welcome back to the Tuesday edition of What I’m Hearing, helmed by Eriq
Gardner. Tonight he’s got a smart analysis of the A.I. deal that SAG-AFTRA struck with the studios, and why its language might set up future battles. Plus, Elon lawyer Marc Toberoff goes back to his day job fighting studios, and an early read on Ben and Matt’s dirty-cop defamation suit.
All yours, Eriq (and send him tips at Eriq@puck.news).
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a Puck member yet? Never too late. Just click here.
Discussed
in this issue: Tom Hanks, Patrick Swayze, Jonathan Santana, Taylor Swift, Guy Ritchie, Chris Casiano, Elon Musk, Matt Damon, Nicholas Kristof, Dick Wolf, Andrew Greene, Duncan Crabtree-Ireland, Doug Liman, Jake Gyllenhaal, Jason Smith,
Ravi Batra, Tom Cruise, R. Lance Hill, Aaron Moss, Marc Toberoff, Mark Goldfeder, Sam Altman, Ben Affleck, and more.
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| Eriq Gardner
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- Who owns Road House?: With
Elon Musk’s trial against Sam Altman regarding the fate of OpenAI now over—a jury concluded that he waited too long to sue; Musk says he’ll appeal—his lawyer Marc Toberoff can return to the more familiar terrain of Hollywood copyright battles. Toberoff’s next trial pits him against Amazon over Road House in a dispute that’s shaping up to be as bruising as anything that ever unfolded outside the Double Deuce.
Toberoff represents
R. Lance Hill, a.k.a. David Lee Henry, the screenwriter behind several Reagan-era action films, including The Evil That Men Do, Out for Justice, and the original 1989 Road House starring Patrick Swayze. Hill says he reclaimed the Road House franchise under the Copyright Act’s termination provisions, and that Amazon’s 2024 Jake Gyllenhaal remake was completed after those rights
had already reverted to him. As such, the 2024 version would be an infringement. Amazon Studios and MGM countered that Hill can’t exercise termination because the original screenplay was a work made for hire for his loan-out corporation—a practice talent has historically used for tax advantages.
The case has since rapidly expanded into a much dirtier fight over the future of the franchise. When the remake debuted, director Doug Liman publicly warred with Amazon
over its decision to bypass theaters and dump the movie on Prime Video. Liman now appears to be siding with Hill, possibly with an eye toward directing a sequel. It so happens that Amazon is also pursuing a sequel, and recently sought to subpoena Liman to explore whether he and Hill were coordinating their efforts. According to Amazon, Toberoff ran interference. Amazon is now asking the judge to compel compliance, accusing Toberoff of “witness tampering,” and the company claims that it
needs several extra months of discovery, pushing a November trial date to March.
Last Thursday, however, Toberoff told a California judge that a delay would “frustrat[e] any chance of [Hill] securing an injunction based on a trial outcome ahead of the sequel’s release.” That’s interesting... Amazon has not announced a release date for its sequel, though Matt Belloni reported last month that Guy Ritchie was being eyed to direct. Toberoff’s
argument suggests that he believes the sequel is moving ahead on an accelerated timeline.
Which means this litigation no longer merely concerns whether MGM can point to these tax-advantaged loanouts to hold on to an aging library. (Road House won’t be its last termination issue.) The dispute now centers on whether Amazon can continue building a franchise before a court determines whether it owns the underlying rights. - Ben and Matt’s
courtroom caper: Defamation suits come in all shapes and sizes, but my personal favorite is the kind where someone watches a movie and concludes, That character must be based on me, but in an untrue way, and now my reputation is ruined! Exactly this sort of situation has now engulfed Netflix’s recent Ben Affleck–Matt Damon action film The Rip. After watching the movie, in which corrupt cops steal drug money and commit other crimes,
Miami-Dade officers Jason Smith and Jonathan Santana apparently sensed some symmetry with their own lives. The two cops subsequently filed suit against the movie’s producer, Falco Productions.
Cases like this one force plaintiffs to thread an incredibly narrow needle. The fictional portrayal must be accurate enough that viewers can readily identify the plaintiff, yet false enough to be defamatory. Just ask Andrew Greene,
the former Stratton Oakmont general counsel who sued Paramount, along with Martin Scorsese and Leo DiCaprio’s production companies, over the character Nicky “Rugrat” Koskoff in The Wolf of Wall Street, only to collide with the sturdy legal protections that the
courts afford to dramatized works, composite characters, and the familiar disclaimer that any resemblance to persons living or dead is coincidental.
The theory, however, is not entirely fanciful. Consider the libel case arising from a 2003 episode of Law & Order. A lawyer named Ravi Batra sued
after the show depicted a corrupt lawyer also named Ravi. Batra overcame a Dick Wolf motion to dismiss by demonstrating that only six lawyers in all of New York shared his name, and that he alone matched the character’s age and physical appearance. Even so, his case ultimately failed at a later stage.
I’d handicap Affleck and Damon as the overwhelming favorites here. They’ll presumably come armed with top-flight First Amendment counsel. (Their Artists Equity shingle has
already been dropped as a co-defendant.) More importantly, the Miami-Dade police universe is large. The script may have drawn loosely from the experiences of the film’s technical advisor, Miami-Dade Police Capt. Chris Casiano, but that alone almost certainly won’t be enough for Smith and Santana. Borrowing details from departmental lore is one thing. It’s quite another to convince a judge that a dirty-cop movie pointed its finger at you. - Could
The New York Times sue Israel?: You’ve no doubt heard about Benjamin Netanyahu’s threat to sue the Times on behalf of Israel over Nicholas Kristof’s column regarding the alleged rape and sexual abuse of Palestinian detainees by Israeli prison guards and soldiers. (My partner Dylan Byers recently detailed
the fallout inside the paper.) But consider the inverse scenario: What if the Times sued Israel?
Start with the reality that Israel would be unlikely to file such a case in an American court, where government entities have long been barred from extracting damages from critics. But Israel has alternatives. As Mark Goldfeder argued in National Review, Israel—or even individual soldiers—could sue in Israeli court, where the standards are more forgiving: Negligent publication can be enough, and the allegedly defamatory statement need only be identifiable. (Disgruntled Miami cops, take note.)
What Goldfeder largely elided, however, was the SPEECH Act—the
Obama-era law passed in response to concerns over libel tourism, most famously the U.K. litigation against an American author who had alleged that a Saudi billionaire had financed terrorism. The statute generally blocks enforcement of foreign defamation judgments in the U.S., unless the foreign court provided protections consistent with both the First Amendment and the law of the particular state where enforcement is sought.
The statute itself functions mainly as a
post-judgment weapon, but its implications would loom over any earlier attempt to involve American courts. If Israel ran to a U.S. court seeking discovery for a foreign proceeding, as Goldfeder has envisioned, the Times would almost certainly resist under Section 1782, the First Amendment, reporter’s privilege, and the broader argument that American courts should not assist in building a libel case that could not be meaningfully enforced here. And if an Israeli court did enter a
judgment, the SPEECH Act would stand as the paper’s obvious shield.
That would create an intriguing scenario. In a Trump administration inclined both to coordinate closely with Israel and pressure the Times, it’s conceivable that the paper could file its own federal declaratory action. The aim would be to convince a U.S. judge to declare any foreign judgment repugnant to the Constitution and therefore unenforceable in the United States.
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And now, the main event...
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News and notes on the union’s peace treaty with digital “actress” Tilly Norwood. Plus: The
bizarre lawsuit over Tung Tung Tung Sahur, which may be the first major test of whether trademark law can do what copyright won’t—protect an A.I.-generated creation.
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Considering that Hollywood has spent the past few years spiraling about an A.I. jobs apocalypse—and torched
half of 2023 in a pair of strikes largely centered on that very issue—it’s honestly a little surprising that this bargaining cycle has been so civilized. Reading through the 18-page summary of SAG-AFTRA’s tentative deal with the studios, I was somewhat startled to see that the union, pending membership
approval, had left open the door to “synthetic” actors—i.e., fully A.I.-generated digital performers, not based on or performed by identifiable human actors. After years of warnings that studios wanted infinitely reusable performances, Hollywood has effectively agreed to that future.
To be fair, union leadership was understandably focused on stabilizing pension and health plans while also securing meaningful streaming residual gains. Still, it’s hard not to wonder what comes
next. Producers now need only an “articulable business reason” to scan actors they hire. They don’t need to disclose that reason, either—they can merely notify the union and engage in discussions before licensing films and television shows for third-party A.I. training. SAG-AFTRA has no veto. As for deploying fully synthetic performers like Tilly Norwood, it’s all good as long as producers can demonstrate that A.I. actors offer “significant additional value” beyond what could be achieved using
an ordinary digital replica or, you know, an actual human being.
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And so what exactly counts as “significant additional value”? That’s where things get hazy fast. The language
is squishy enough to suggest both sides were deeply motivated to keep the A.I. issue from blowing up the deal altogether. Better, perhaps, to preserve the right to object and the right to gather discovery than to force a clean answer today. That leaves the hard conversations for a later fight—whether that arrives in arbitration or during the next bargaining cycle, now four years away instead of the usual three.
Still, I can’t help but wonder whether Hollywood’s latest labor peace is
really just an advance payment on years of lucrative legal work built around a fresh crop of ambiguities. If the agreement effectively requires studios to show they considered—and rejected—using actual performers before deploying a synthetic one, what does that process look like in practice? Is there a paper trail? A memo? A PowerPoint explaining why a flesh-and-blood actor simply couldn’t cut it? And who ultimately decides whether the justification is persuasive enough? Was “significant
additional value” left intentionally elastic because SAG-AFTRA didn’t want to inadvertently legitimize certain uses by defining the term too narrowly? Or was ambiguity simply the price of getting the concept into the contract at all?
One wonders whether negotiators ever traded hypotheticals behind closed doors: Would saving money qualify as a sufficient reason? Avoiding scheduling conflicts? What about creating a synthetic performer who conveniently never ages out of a franchise? Or did
everyone avoid specifics for fear of accidentally blessing the next industry nightmare?
I pressed SAG-AFTRA chief negotiator Duncan Crabtree-Ireland on how any of this is actually supposed to be policed. He pushed back on the idea that the contract language is especially murky, insisting that the “significant additional value” standard will be “very hard” for producers to satisfy. He also told me he has trouble imagining what kind of documentation a studio could
realistically assemble to justify deploying a fully synthetic performer in lieu of a human one. Translation: Nobody in town seems quite ready to storm the barricades over synthetics stealing jobs just yet, but the union is very much reserving its right to take up arms later. As Crabtree-Ireland put it, “Ultimately, it is the arbitrator who must determine whether there was, in fact, significant additional value achieved by using a synthetic.”
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Of course, studio executives tend to be profoundly risk-averse, so even if the new rules are a blessing for
Tilly Norwood’s agent, there are still plenty of unresolved questions swirling around this new A.I. era. Beginning with the basic issue of ownership: Who, exactly, owns what? The question occupies the center of a developing case I’ve been watching, one so strange and under the radar that it has escaped even the obsessives maintaining public spreadsheets tracking A.I. litigation.
The dispute concerns Steal a Brainrot, one of Roblox’s biggest hits—a treasure-hunt game that has
amassed tens of billions of visits and already has a feature-film adaptation in the works. The game allows users to “steal” various brainrot characters as they move through the game’s world. Until recently, one of the most popular characters was Tung Tung Tung Sahur, an A.I.-generated meme figure allegedly created by an Indonesian TikToker known as “Noxa.” Tung Tung resembles a humanoid wooden “stick drum” wielding a bat. Mementum Lab, a French startup that bills itself as a talent
agency for brainrot characters, licensed Tung Tung Tung Sahur on behalf of Noxa. (Yes, that is the most 2026 sentence I have ever written.)
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Last fall, Mementum sent Spyder Games, the publisher behind Steal a Brainrot, a cease-and-desist
letter essentially inviting the parties into licensing negotiations. Instead, Roblox briefly pulled the character from the game, tempers escalated, and now we have a fascinating lawsuit sitting at the intersection of A.I., internet culture, derivative works, and the surreal economics of digital intellectual property.
Spyder’s opening gambit was to sprint to California federal court seeking declaratory relief that Tung Tung Tung Sahur wasn’t entitled to copyright protection because the
character was generated by A.I. and lacked the human authorship that copyright law requires. Mementum responded by bypassing copyright altogether. Rather than defending ownership through copyright law, the company asserted trademark rights over Tung Tung Tung Sahur’s name and likeness. The theory here is that consumers could mistakenly believe an unauthorized digital double is officially connected to its creator. (Matthew McConaughey, Taylor Swift, and all those
preparing for the A.I. age by trademarking, take note.) Mementum says it holds a registered trademark in France and a pending application through the World Intellectual Property Organization and already licensed Tung Tung into other games including Fortnite, Plants vs Brainrots, and Pudgy Party.
On Friday, Spyder—represented by
noted Mitchell Silberberg partner Aaron Moss, squaring off against his former firm Greenberg Glusker, the Hollywood boutique whose clients include Tom Cruise and Tom Hanks—moved to dismiss. Spyder’s argument is that there is no legitimate trademark here because fictional characters are not supposed to function as source identifiers under the Lanham Act. Even if they could, Spyder argues, the Supreme Court largely foreclosed this maneuver in Dastar v. Twentieth Century Fox, the 2003 decision involving a war documentary series that had fallen into the public domain. There, the Court held that trademark law’s concern with “origin” refers to the producer of the tangible goods being sold (e.g., a video game) rather than the creator of the ideas or expressive content embedded within those goods. Put
differently, trademark law is not supposed to serve as a backdoor substitute for copyright protection. More bluntly, trademark claims cannot revive rights that copyright law declines to recognize in the first place.
That is where the matter now stands: a case likely destined for law school casebooks; a dispute Hollywood should study carefully as synthetic characters move deeper into the licensing economy; and perhaps a clear indication that A.I. will not eliminate legal work so much as
generate entirely new categories of it. The Gen Z associates arriving at firms this summer armed with ChatGPT prompts and Zyn addictions should probably feel secure. If anything, the machines appear to be creating a bigger mess for lawyers to clean up—one brainrot character at a time.
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Thanks, Eriq. WIH returns for a special issue on Wednesday, and I’ll be back on Thursday.
Matt
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Puck founding partner Matt Belloni takes you inside the business of Hollywood, using exclusive reporting and insight to explain
the backstories on everything from Marvel movies to the streaming wars.
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Ace media reporter Dylan Byers brings readers into the C-suite as he chronicles the biggest stories in the industry: the future
of cable news in the streaming era, the transformation of legacy publishers, the tech giants remaking the market, and all the egos involved.
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