The decisive legal trap was hidden in the character rights. Mystery Man Productions had obtained limited rights to Brenda Starr from Tribune Entertainment in April 1986, but had failed to secure the television rights. When New World investigated the deal, Tribune asserted that it still controlled all television rights to the comic-strip property, meaning the distributor could not freely sell the film to television—one of the most important revenue streams in the era. On July 10, 1987, Tribune informed New World that the proposed arrangement was unacceptable. Mystery Man withdrew, retained control of the film negative, and argued that New World had never obtained a binding contract. New World responded in September with a lawsuit against Tomorrow Entertainment, Mystery Man, and the film's sales agents, alleging fraud, breach of contract, and civil conspiracy; Mystery Man sought to prevent New World from distributing the picture. The dispute left the completed film commercially immobilized for years. It eventually surfaced in a handful of overseas territories beginning in 1989, but North American distribution repeatedly collapsed, and a later re-release plan was cut from 108 to 96 minutes. When the film finally reached American theaters in 1992, after the market had already been flooded with more successful comic-book adaptations, it earned only about $30,000 in its first week and was quickly withdrawn.
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