Axanar - Crowdfunded 'Star Trek' Movie Draws Lawsuit from Paramount, CBS

Not all of it -- they did shoot the Vulcan scene and build some sets, and pay studio overhead, and so forth. But it certainly appears that a helluva lot of it was diverted.
 
Was the amount raised for the film supposed to be enough to finish it? Or was AP intending to raise more money along the way?
 
Was the amount raised for the film supposed to be enough to finish it? Or was AP intending to raise more money along the way?
I seem to remember it was the second one. The first big Kickstarter (after Prelude) was for the studio, then there was supposed to be another one to fund the film.
 
Here’s a cut and paste from 2 of CBS and Paramount’s (identical) responses to interrogatories.

The information hereunder is directly from public record, and officially recorded facts uncovered in the discovery stage.

Round about sums their whole case up - why, who, when, where, and what they want.

It's really worth the read.

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INTERROGATORY NO.8:

Identify and describe the harm or injury You claim to have suffered as a result of Defendants' actions as alleged in the FAC.

RESPONSE TO INTERROGATORY NO. 8:

Defendant Alec Peters raised over $1 million (‘’and spent over $1 million’’ – mentioned elsewhere. My addition.) from Star Trek fans, based on his announced intent to create an "independent Star Trek film." Mr. Peters called his independent Star Trek film, "Star Trek: Axanar." Mr. Peters took the funds obtained from fans of Plaintiffs' Star Trek intellectual property and he produced and released a twenty-minute film entitled "star Trek: Prelude to Axanar."

After the completion and release of this twenty-minute film, Mr. Peters continued to raise money from fans of Plaintiffs' intellectual property, and he paid himself, and his then-girlfriend, tens of thousands of dollars in "salary" ($65,000– mentioned elsewhere – my addition) in connection with his Axanar project. Mr. Peters also took the money obtained from fans and rented out a studio in Valencia, California. Peters' stated intent in doing so was to create a film studio (using funds from Star Trek fans) that he could utilize in the future to create for-profit projects.

Mr. Peters' production team generated a marketing plan for his project stating that the first goal of Axanar Productions (Mr. Peters' corporation) was to complete the Star Trek: Axanar film, while the second "objective" of Axanar Productions was to "create and develop new models of sponsorship and funding that will help Axanar productions generate profits on low budget productions." Robert Meyer Burnett testified that this was an objective that he had discussed with Alec Peters and the co-writer of the feature-length Star Trek: Axanar screenplay, Bill Hunt, stated, while he was working on the film, that "my understanding has been that we're trying to make the best independent professional Star Trek feature film that's ever been done, and - in the process - to help build a successful independent filmmaking studio that benefits us all."

Thus, Mr. Peters' stated goal was to create an "independent" "professional"Star Trek film that was of a quality that could compete with Plaintiffs' intellectual property, and Mr. Peters additionatly hoped to continue to raise money fromconsumers of Plaintifs' licensed intellectual property so that he could continue to
create, and profit from, Plaintifs' intellectual property.

Mr. Peters personally profited from Plaintiffs' intellectual property by payinghimself with funds raised from consumers of Plaintiffs' intellectual property and by spending tens of thousands of dollars of those funds on his own personal expenses. Mr. Peters used fan-raised funds to pay for the tires on his Lexus, to service his car, to pay for his gas, each and every week for nearly two years, to pay for his girlfriend's gas for the same time period, to pay for two years of personal phone bills for himself, his girlfriend and Robert Meyer Burnett, to pay for his health insurance, his car insurance, his annual AAA memberships, his TSA airport precheck fee, and his personal travel to conventions, both in the United States and internationally.

Mr. Peters also used these funds to pay for tens of thousands of dollars in restaurant meals. Mr. Peters and his girlfriend were provided with debit cards that they used to pay for these expenses from the Axanar Productions account- which account was populated with funds contributed by Star Trek fans.

Further, Mr. Peters' company, Propworx, is housed in the studio facility that was rented andbuilt out using funds from Star Trek fans. Propworx has not paid any rent to Axanar Productions for its use of this facility.

These funds, which Alec Peters personally profited from, were raised from consumers of Plaintiffs' intellectual property. Instead of purchasing licensed Star
Trek products, these consumers donated to Mr. Peters' "independent Star Trek ftlm" project. Any dollar that a donor spends on Axanar is a dollar that they do not have for authorized Star Trek merchandise or products.

Additionally, if the activity by Defendants becomes widespread, or if Mr. Peters was permitted to continue to create Star Trek productions from his studio paid for with fan funds, this conduct would have a direct economic impact on plaintiffs by virtue of the fact that there would be professional Star Trek films competing with authorized Star Trek movies and television series. Moreover, if viewers are viewing Axanar for free, they may not be downloading or viewing the Star Trek films or television series.

Further, emails turned over by Christian Gossett, the director of Star Trek: Prelude to Axanar, show that Mr. Peters met with Netflix and Amazon regarding
Axanar Productions. Mr. Peters was exploring methods by which he coulddistribute high-quality Star Trek content, without a license, in order to enable him to continue to personally profit from Plaintiffs' intellectual property.

The unrestricted and widespread conduct of the sort engaged in by the Defendants in this case would result in a substantially adverse impact on the market for Plaintiffs' products. This was Mr. Peters' stated intent, in fact, as he planned to use the funds raised from Star Trek fans to build out a for-profit studio and to continue to profit himself by creating additional productions of "independent" and "professional Star Trek" films.

Mr. Peters' conduct also damages the market for derivative works, and Plaintiffs have already created and licensed derivative works that include the characters misappropriated by Defendants. These works include the published novel, Garth of lzar, as well as the licensed works "The Four Years 'War" and "Retum To Axanar" which were included as part of Star Trek: The Role Playing Game.

Indeed, for fifty years, Plaintiffs have continuously used the intellectual property and characters from The Original Series to create new, authorized derivative works, whether in the form of television series, feature films, or novels.

INTERROGATORY NO.9:

Identify and describe the damages that You seek for each cause of action asserted in the FAC, including by identifying and describing the method(s) used to compute these damages.

RESPONSE TO INTERROGATORY NO. 9

Pursuant to 17 U.S.C. $ 504(c), Paramount is entitled to recover statutorydamages of up to $150,000 for each infringing act by Defendants for the three claims alleged for copyright infringement. The works alleged to be infringed are included in the First Amended Complaint in this action and are further identified in the interrogatory responses served by Plaintiffs. Mr. Peters' conduct in connection with infringing Plaintiffs' works has been willful, in that he deliberately sought to trade off Plaintiffs' intellectual property, repeatedly proclaimed that he was not creating a "fan film" but was instead creating a "professional, independent Star Trek film."

Mr. Peters also stated that the quality of his Axanar works would rival Plaintifs' productions. Mr. Peters also appears to have attempted to create a
business relationship with Netflix and Amazon based on his infringing Star Trek: Axanar project and, although Christian Gossett, the director of Star Trek: Prelude to Axanar, testified that Mr. Peters told him about these meetings, and Mr. Gossett produced a document showing that such meetings occurred, Mr. Peters has not turned over any documents relating to his negotiations with these entities.

Mr. Peters was also fully aware of the infringing nature of his activities, as over the course of several years, Mr. Peters (a trained attorney) repeatedly sent CBS notices informing CBS that Mr. Peters believed that other entities and fan film creators were engaging in "infringing" conduct. Again, Mr. Peters did not turn over these communications in discovery, although CBS did.

Paramount further states that, in the alternative and at its election, pursuant to 17 U.S.C. $ 504(b), Paramount is entitled to recover its actual damages and any of Defendants' profits that are attributable to the infringement, the exact amount of which actual damages and profits is currently unknown to Paramount and is subject to Paramount's continuing investigation and discovery into the nature and extent of Defendants' violations of the Copyright Act. Paramount has been able to determine that Mr. Peters raised approximately $1,5 million from donors in order to qeate Star Trek; Prelude to Axanar, and to engage in production activities relating to the planned full-length independent Star Trek film, Star Trek: Axanar.

It is unclear from Mr. Peters' discovery responses and documents produced to date how much of those funds were used to pay himself, but Paramount is entitled to recover, as profits relating to the infringing activity, all of those funds, including the amounts paid to Mr, Peters, his girlfriend, and for his travel, gas, meals, tires and other personal expenses as listed on Bates Nos. AX 30915-31L29. Paramount further states that, pursuant to 17 U.S.C. $ 505 and/or other
applicable law, it seeks an award of its reasonable attorneys' fees and full costs of this action, which fees and costs continue to accrue and cannot be computed at this time.
 
And here are some more titbits from other documents :

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75. After his first deposition, wherein he was examined regarding the use of funds raised for the Axanar project, Mr. Peters altered the financial summary that he had been produced in this case [Exhibit SS] in order to remove all of the personal charges that he was examined about during his initial deposition. Exhibit A (Peters tr. at 394:20-396:7; 398:24-399:10; 401:7-403:5) (confidential document filed under seal) is a true and correct copy of relevant excerpts from the deposition transcript of Alec Peters taken on November 2, 2016.

76. The altered financial summary created by Mr. Peters after his initial deposition, which he testified he intends to release to the public in order to show how “transparent” Axanar is, does not contain the auto (car) section, meals section, or health insurance section, or any of the detailed expenditures made by Mr. Peters on himself and his girlfriend.

77. Mr. Burnett testified that Mr. Peters said that he hoped that making Axanar would allow him to work for CBS, and that CBS should let him “run Star Trek.” Exhibit B (Burnett tr. at 217:22-218:7) (confidential document filed under seal) is a true and correct copy of relevant excerpts from the deposition transcript of Robert Meyer Burnett taken on October 11, 2016.

78. Mr. Gossett similarly testified that Mr. Peters told him that he hoped that, after creating Axanar, CBS would hire Mr. Peters in some capacity. Attached hereto as Exhibit C (Gossett tr. at 19:15-22:20) are true and correct copies of excerpts from the deposition transcript of Christian Gossett taken on October 22, 2016.

79. Mr. Peters testified that he told Mr. Gossett and Mr. Burnett that he wanted to use the Axanar project in order to make money from CBS.

80. Mr. Burnett, like Mr. Peters, did not produce his social media postings, his online postings, any text messages, or any substantive emails regarding the Axanar project. However, Plaintiffs were able to locate some of those documents. In Mr. Burnett’s deposition, he was asked if he viewed “Axanar the full length feature film as a spec commercial that would showcase your abilities as a director and would allow you to get other jobs directing?” Mr. Burnett denied that he viewed his work on the Axanar project in that manner but his testimony was contrary to written statements he made, but had not turned over in discovery.
 
Last but not least, from other court documents, here's Alec Peters dropping the boulder on his own foot :

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Peters testified that his intention in creating the Axanar Works was to be “ridiculously accurate” to Star Trek and to “make sure every little detail adheres to canon.” UMF 55.

The director of Prelude, Christian Gossett, confirmed that The Axanar Script, which Peters testified was going to be used to film Axanar in early 2016, shows that Defendants intended to create, and were in the process of creating, a Star Trek film, incorporating innumerable elements of the Start Trek universe. The Axanar Script, like Prelude, incorporates Plaintiffs’ copyrighted characters, including Garth of Izar, Soval the Vulcan ambassador, Klingon Commander Chang (the villain featured in Star Trek VI: The Undiscovered Country), and many other Vulcan, Klingon, and Starfleet characters. UMF 65-73.
 
So, in brief: Not only personal expenses (food, gas, etc) but also falsifying the financial records, getting rent-free storage for his other (for profit) company and then convincing himself this would lead to him being put in charge of Star Trek?????
Definitely a crook, certainly an ******, and probably delusional.
 
So, in brief: Not only personal expenses (food, gas, etc) but also falsifying the financial records, getting rent-free storage for his other (for profit) company and then convincing himself this would lead to him being put in charge of Star Trek?????
Definitely a crook, certainly an ******, and probably delusional.

I can't wait to hear from all this supporters who gave him money and then championed him with praise and words of support about the lawsuit. I want to hear how they feel when they realize they paid for his living expenses and not the film. He basically committed fraud. After this lawsuit he might find a class action civil suit from all the donors.
 
I'm really curious about these meetings with Netflix and Amazon. I can't believe they would even discuss distributing unlicensed copyrighted works.
 
Wow. I cannot wait to read this.

[EDIT] -- Just skimmed the highlights. Peters definitely feathered his own nest with Axanar contributors' donations. I hope they at least TP his house. :p

This seems like it would pierce whatever corporate veil existed for Axanar, and allow CBS/Paramount to go after Peters' personal property.

I'm really curious about these meetings with Netflix and Amazon. I can't believe they would even discuss distributing unlicensed copyrighted works.

"Had a meeting" doesn't necessarily mean "was getting Netflix backing." There's also the question of whether the Netflix and Amazon folks were lied to in the initial meetings (e.g. "I totally have a license! Don't worry about a thing."). Otherwise, this would seem to be tortious interference on Netflix/Amazon's part, and I simply can't believe that they'd meet with the guy knowing that he was wildcatting the entire operation.
 
Yes, the fact that those meetings did not result with a deal shows that they were onto his game pretty quickly.
 
"Had a meeting" doesn't necessarily mean "was getting Netflix backing." There's also the question of whether the Netflix and Amazon folks were lied to in the initial meetings (e.g. "I totally have a license! Don't worry about a thing."). Otherwise, this would seem to be tortious interference on Netflix/Amazon's part, and I simply can't believe that they'd meet with the guy knowing that he was wildcatting the entire operation.

Far as we can tell from the pleadings and from all of the evidence that has been released, there is no proof that any actual meeting with Netflix or Amazon occurred. There is only proof that Peters wanted such a meeting, and that he told others that the meetings were "in progress ". Given everything else we have learned about the distinction between "the spin" and "the reality" on any given point, my personal guess is that he never got past the operator or receptionist.

M
 
This seems like it would pierce whatever corporate veil existed for Axanar, and allow CBS/Paramount to go after Peters' personal property.
Well, he's already on the hook jointly and severally with Axanar due to his authorship of the script, right? I don't think Peters ever pleaded anything like corporate authorship -- it's his name on the locked script. I see your point, though, since it seems obvious the business entity was only created as a bag to hold the fraud.

But I guess that's moot -- there's no corporate veil to pierce on a pile of ashes. :p
 
The fact that he even approached Netflix and Amazon clearly shows his intent was for-profit distribution. I just don't get how he thinks he can still paint himself as the virtuous-defender-of-true-Trek
 
The fact that he even approached Netflix and Amazon clearly shows his intent was for-profit distribution. I just don't get how he thinks he can still paint himself as the virtuous-defender-of-true-Trek

Assuming he ever did approach them.

It could have been just a BS story to keep his donations flowing in.
 
The fact that he even approached Netflix and Amazon clearly shows his intent was for-profit distribution. I just don't get how he thinks he can still paint himself as the virtuous-defender-of-true-Trek

Arrogance, and a sense of "ownership" by dint of extreme fandom.

Or, put another way, he really, really, really WANTS to own Star Trek and tell the stories he believes would be better. Plenty of other fans have stoked his ego in this, too, and share this delusion.

The bottom line is that a certain portion of the fanbase feels a sense of "ownership" of Trek, and doesn't really care what the law says. It's THEIR Trek, not the suits' and stuffed shirts' Trek. They approach legal argumentation from this perspective, basically trying to find any shred of legal justification for doing what they want. The problem is, there isn't any such justification under the circumstances.
 
Arrogance, and a sense of "ownership" by dint of extreme fandom.

Or, put another way, he really, really, really WANTS to own Star Trek and tell the stories he believes would be better. Plenty of other fans have stoked his ego in this, too, and share this delusion.

The bottom line is that a certain portion of the fanbase feels a sense of "ownership" of Trek, and doesn't really care what the law says. It's THEIR Trek, not the suits' and stuffed shirts' Trek. They approach legal argumentation from this perspective, basically trying to find any shred of legal justification for doing what they want. The problem is, there isn't any such justification under the circumstances.
And what's weird about it is he's a lawyer. He knows the law (or should), and yet made the worst possible decision in every way that counts. I think it really is, as you say, arrogance to the point of delusion. I can't fathom any other explanation for a lawyer setting up his own firing squad and then handing out the bullets.
 
And what's weird about it is he's a lawyer. He knows the law (or should), and yet made the worst possible decision in every way that counts. I think it really is, as you say, arrogance to the point of delusion. I can't fathom any other explanation for a lawyer setting up his own firing squad and then handing out the bullets.

To be fair, just because he's a lawyer doesn't necessarily mean that he knows or understands copyright law; with so many different specialties within the law field there's no way that being a lawyer in one area of the law would necessarily give you an understanding of another part of the law, esp. with something as byzantine as copyright law.
 
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