Phase 4 Films

Phase 4 Films traces its history to Telegenic, a family-oriented film distributor that was founded in 1996. Berry Meyerowitz purchased Telegenic in 2000 and renamed it as "Kaboom! Entertainment". In 2006, Peace Arch Entertainment Group, which later merged with ContentFilm, purchased Kaboom!. Berry Meyerowitz founded Phase 4 Films in April 2009 when he bought back their North American distribution business.^[1]

In 2011, Phase 4 announced a new Canadian television venture along with Take 5 Development.^[2] In 2012, they partnered with Kevin Smith's SModcast Pictures to distribute those films in the U.S. and Canada.^[3] Phase 4 acquired ESI Distribution in 2014 and signed distribution deals with The Criterion Collection and Shout! Factory.^[4] On June 2, 2014, Phase 4 Films itself was acquired by Entertainment One.^[5]

In 2013, Phase 4 acquired the rights to the Canadian animated feature The Legend of Sarila for distribution in the U.S. Instead of releasing it as the creators intended, Phase 4 adjusted the title to Frozen Land, then focused its marketing around text and disc art like that of Disney's Frozen, in addition to trailers and promotions casting it as resembling Frozen, though the film's story actually drew its inspiration early 20th century Inuit culture and had no resemblance to Frozen whatsover. In late December 2013, Disney filed a trademark infringement lawsuit against Phase 4 in California federal court, seeking an injunction against the continued distribution of Frozen Land in the U.S.^[6][7] Disney alleged that less than three weeks prior to the release of its animated feature film Frozen, Phase 4 Films Theatrically released The Legend of Sarila, which garnered "minimal box office revenues and received no significant attention."

To trade off the success of Disney's animated film and "[t]o enhance the commercial success of Sarila, the defendant redesigned the artwork, packaging, logo, and other promotional materials for its newly (and intentionally misleadingly) retitled film to mimic those used by [Disney] for Frozen and related merchandise."^[8] While film titles cannot be trademarked by law, Disney cited a number of alleged similarities between the new Phase 4's Frozen Land logo and Disney's original one.^[9][10]

By late January 2014, the two companies had settled the case; the settlement stated that the distribution and promotion of The Legend of Sarila and related merchandise must use its original title and Phase 4 must not use trademarks, logos or other designs confusingly similar to Disney's animated release.^[10][11][12] Phase 4 was also required to pay Disney $100,000 until January 27, 2014, and make "all practicable efforts" to remove copies of Frozen Land from stores and online distributors until March 3, 2014.^[10][11]