There’s going to be a torrent of litigation over Warner Bros’ March 2009 tentpole film, Watchmen, which is now on the highly-anticipated alert list for bloggers, entertainment journalist and comic book movie fans.

The story was brought to the forefront last week, when a lawsuit filed by 20th Century Fox in February was not dismissed as expected by U.S. District Court Judge Gary Allen Feess.

Fox’s lawsuit seeks an injunction against Warners Watchmen film, claiming that Warners developed the movie when Fox held exclusive copyright and contract rights to distribute the film internationally.

In the early 90s, Fox signed a series of contracts with the Watchmen property owners and copyrighted a number of Watchemen drafts written by Charles McKeown and Sam Hamm. This lead to an eventual deal with Fox and producer Larry Gordon claiming that if the film was ever produced, Gordon would have to b bought out of the property in the tune of 2.5% on the film’s gorss and the gross of any spin-off materials (like THIS). Fox filed the injunction lawsuit when neither Fox nor Gordon were contacted to negotiate payment.

Warners is claiming that Fox stood by as multiple studios developed Watchmen adaptations in the 90s and early 00s, and the WB claims that Fox even had the chance to purchase the production for themselves some time ago and let the deal expire.

Judge Feess’ ruling that the lawsuit adheres the basic minimums for filing means that the case will now enter the discovery phase and some of these contracts with see the glaring legal-white light of the judicial branch.

Worst case scenario for movie fans: Fox’s claims are entirely accurate and Warners will either have to eat a multi-million dollar settlement or hand over two-and-a-half points on one of their most profitable films of 2009. If they chose to do either of these, we could still see the film released. Barring an injunction until the legal matter is settled (though this is unlikely…would you postpone an expensive effects film when you could probably bail it out for a few mil?).

Fox seems really nose-to-the-grindstone about getting Watchmen halted altogether, which would kill a huge chunk of Warners’ slate next year. Except, of course, the newly-moved Potter film…

For more details, check out DHD.