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Fox has claimed that it acquired all movie rights to the comic series in 1986. However, the studio gave them up in 1991 with the understanding that it held the exclusive option to distribute the first film based on Watchmen. The initial lawsuit against Warner Bros, which is backing the film, was filed in February.
A Los Angeles court last week ruled that Fox could still hold rights to the comic book, meaning that a copyright case could be pursued.
Fox spokesman Greg Brilliant said: "We will be asking the court to enforce Fox's copyright interests in Watchmen and enjoin the release of the Warner Bros. film and any related Watchmen media that violate our copyright interests in that property."
Though Warner Bros. representative Scott Rowe confirmed that the case will move forward, he insisted that Watchmen, about a group of fading superheroes who uncover a conspiracy, will still make its March 6, 2009 release date.
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