Woody Allen agrees to $5 million settlement with American Apparel

(Actor and director Woody Allen arrived at a federal courthouse in New York Monday. From Reuters)

BY MING ZHUANG/MEDILL NEWS SERVICE

If you remember a commercial by American Apparel [[APP]] last year, you may recall that the company used a clip from Woody Allen’s film “Annie Hall,” in which he was dressed as a Hasidic Jew.

When the advertisements turned up on billboards in Hollywood and New York and on a Web site, Allen sued the clothing company for $10 million for using his image without his permission.

Today, Allen agreed to a $5 million settlement, which he said was the largest settlement ever under the New York right-to-privacy law, according to the New York Times.

According to AP, in a statement outside Federal court in Manhattan, Allen said “he hoped the outcome ‘would discourage American Apparel or anyone else from ever trying such a thing again’.”

Lawyers from American Apparel said they wouldn’t bring up Allen’s personal history but will focus on issues of free speech and fair use.

AP said Court papers filed on Allen’s behalf had described “the actor-director as one of the most influential figures in the history of American film, and say he believes maintaining strict control over his image has been critical to his success.”

But Stuart Slotnick, American Apparel’s lawyer, told Reuters before the settlement that “Woody Allen overestimates the value of his image.”

Woody Allen expects $10 million for use of his image on billboards that were up and down in less than one week…Certainly, our belief is that after the various sex scandals that Woody Allen has been associated with, corporate America’s desire to have Woody Allen endorse their product is not what he may believe it is.

The clothier had threatened to call Ms. Farrow and Ms. Previn to testify if the case went to trial in order to show that Allen’s image has already been devalued by scandal.

At press time, American Apparel’s price had climbed 7.66 percent to $5.48. The company will release its first quarter earnings report after the market closes today.

Tags: American Apparel, Woody Allen