‘The Chosen’ vs Angel Studios: When Rights Were Terminated

Some additional information that may help donors, in light of “Exclusive Rights”.

A reader contacted me with reference to a recent (April 4, 2023) SEC filing by The Chosen against Angel Studios

Considering Brad Pelo’s involvement as Angel Studio’s former Chief Distribution Officer (whose fiduciary duties are noted in the lawsuit), now President of The Chosen, one is able to now witness what were allegations in Angel Studio’s lawsuit in action.

“On April 4, 2023, The Chosen, Inc. (the “Company”) delivered to Angel Studios, Inc. (“Angel Studios”) a Notice of Termination (the “Notice of Termination”) of Content License Agreement, dated October 18, 2022 (the “License Agreement”), between Angel Studios and the Company.

The Company seeks to terminate the License Agreement for previously noticed and uncured material breaches of contract in accordance with Section 14 of the License Agreement. As provided in the License Agreement, the Notice of Termination shall not become effective earlier than five business days following the date of such notice.

However, the Company will hold the termination of the License Agreement in abeyance pending arbitration of the matter.

Until the outcome of the arbitration is determined, the Company will continue to perform all its obligations under the License Agreement.”

Interesting.

So arbitration continues.

What more will be uncovered in the weeks and months ahead?