It seems that a nasty lawsuit that threatened the March 6 release of Watchmen might be settled out of court. According to Associated Press, attorneys on both sides of the Fox/Warner Bros. lawsuit over the upcoming Watchmen film say that settlement talks have been quite productive.

A hearing was scheduled for today, but attorneys for both Fox and Warner Bros. asked U.S. District Judge Gary Allan Feess to delay the hearing so settlement talks could continue over the weekend. Feess agreed, but did indicate that a January 20 hearing is still scheduled to determine if the March 6 release will be blocked or not.

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Fox lawyer Lou Karasik said that the delay would be "very very helpful" to the settlement talks, which he said were "productive." Fox originaly brought the lawsuit up in February, claiming that the studio still had rights to the film which Warner Bros. is releasing. Feess agreed last month that Fox still seemed to have the rights to distribute the film.