On 26th November 2018, Genting Malaysia Berhad (GENM) filed a complaint against Walt Disney Company and Fox Entertainment Group as both of the companies terminated the contract to develop a Fox-themed park, ‘ Fox World’.
This complaint was filed at the US District Court for the Central District of California. It would feature Fox’s Intellectual Property related to hit films like “Ice Age”, “Rio”, and “Planet of the Apes”.
GENM had spent $750 million for the construction of the park. According to the contract signed between Fox and GENM, Fox would receive an annual licensing fee, a share of the sales and approval right to design the park.
In return, Fox would provide the license of some of its Intellectual Property to be used. It would be situated at the center of a resort complex, which has a casino as well. It was set to open in the first half of 2019. However, Fox kept delaying the development of the park and did not provide any style guide.
According to the complaint, GENM had to build the characters from scratch, without any guidance from Fox. This activity costed them a substantial amount of time and money. Disney is going to acquire Fox in the first half of 2019.
When Disney started to take the major decisions, Fox decided to terminate the contract. Unlike Fox, Disney did not want a casino near the park. They terminated the contract on the grounds of ‘seller’s remorse’.
GENM questioned the validity of the reason behind the termination of the contract; in addition to that they are seeking punitive and other damages of more than $1 million including their investment of $750 million from the companies and they further accused Disney and Fox of breaching the contract.