United States: Texas Film Commission Permitted To Slice And Dice Financial Incentives To Machete Films

Last Updated: March 9 2016
Article by Nicole Kinsley

It's been a disappointing few months for Machete, Danny Trejo's "Mexploitation" character created by Robert Rodriguez. After making powerful enemies in Mexico, former Federale Machete found himself a day laborer and vigilante in Texas. His adventures allowed him to exact some bloody satisfaction against fictional corrupt Texas lawmen and politicians, but he is having decidedly less success against the real-world Texas government. Recently, both state and federal appellate courts affirmed the dismissal of claims brought by the producers of the Machete films, thus approving the State of Texas' decision not to provide economic incentives to the franchise.

The First Machete Film

A few minutes into Machete (the first film in the series, which was borne of a mock trailer from the intermission of the Tarantino/Rodriguez two-part bloodbath Grindhouse), a fictional member of the Texas border control shoots a pregnant Mexican woman in the abdomen, declaring as justification that, "[i]f it's born here, it gets to be a citizen, just like you and me."

Most people would consider that a less-than-flattering portrayal of Texas. The Texas Film Commission, which administers the Moving Image Industry Incentive Program, apparently agrees. The Program, like those in other states, offers financial incentives to filmmakers who produce movies in Texas, creating local jobs. Not all movies, however, are so generously welcomed. The Commission's rules provide that it "may deny an application because of inappropriate content or content that portrays Texas or Texans in a negative fashion." The Commission agreed to give Machete a grant in 2009 after reading the script, but changed its mind once it had reviewed the final film in 2010 – even though everyone agreed that the script had undergone no significant changes.

In 2013, Machete's Chop Shop, which produced Machete, filed a lawsuit in Texas state court, seeking a declaration that the Commission acted improperly under its own rules, or that those rules were themselves invalid. The Chop Shop argued that the Commission can withdraw preliminary approval of a grant only if there have been "substantial changes" to the script since the preliminary approval. But last month, the Texas Appeals Court disagreed and affirmed the trial court's dismissal of Chop Shop's complaint. The Court held that the text of the regulations (and an enabling statute) allowed the Commission to deny an application at any stage for negative portrayal of Texans. Chop Shop's fairness argument – that it relied on the Commission's original promise of funds – could not prevail against the state, which has the benefit of sovereign immunity.

Absent from the Court's opinion was any mention of the supposed motive behind the Commission's change of heart – that is, the political controversy that emerged once the plot of Machete came to be known. Chop Shop, perhaps rightly, believed the denial of its application was the result of political pressure over the state funding a movie that dealt with topical but sensitive subjects in a bombastic and bloody B-movie fashion.

The Sequel: Machete Kills

Even before the legal dispute over the first Machete film was filed, in 2012 a related entity, Machete Productions, began production on the sequel, Machete Kills, also filmed in Texas (somewhat undercutting Chop Shop's argument that – but for the Commission's rescinded promise – Machete might have been produced elsewhere). Machete Productions was told (by no less than Governor Perry's chief counsel) that there was no way the second film would receive incentives from the state. Undeterred, Machete Productions filed an application — which was denied because of "inappropriate content" – and then a lawsuit. The defendants, the current and former heads of the Commission, removed this litigation to federal court, and the Fifth Circuit recently upheld its dismissal.

The questions presented in the Machete Kills litigation were different, since there had been no preliminary approval of a grant for that film. Here, the crux of the claims was that the Commission – or the Commission's rules – violate the Texas Constitution and/or the First and Fourteenth Amendment of the US Constitution. Machete Productions asserted that the Commission had previously – and very rarely – denied funding only to the makers of inaccurate historical films.

But the District Court and Court of Appeals were having none of it. The Fifth Circuit held that the First Amendment and the Texas Constitution protect only against state action that actually restrains, silences or censors speech. According to the Court, however, a funding program that encourages one type of speech does not silence another – as evidenced by the fact that Machete Kills was still made, and made in Texas, after the application was denied. The Court further held that the effects of such viewpoint discrimination are "not constitutionally severe" when the government "is acting as a patron rather than as a sovereign." Moreover, the producers of the film did not have a protectable property interest in the incentives, no matter how regularly they had been granted in the past, because the statute expressly gave the state discretion in granting them.

The message from the Texas Appeals Court and the Fifth Circuit is loud and clear: Robert Rodriguez can keep making films about racist, corrupt, violent Texans, and Machete and friends can keep hacking them to pieces (next time, apparently, in space!) but Texas doesn't have to help them foot the bill.

To view Foley Hoag's Trademark and Copyright Law Blog please click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
25 Oct 2017, Webinar, Boston, United States

Foley Hoag will present a 60-minute webinar on Wednesday, October 25 at 12:30 pm EDT, offering guidance for in-house counsel regarding the basics of trademark and design protection in the European Union. Attendees will learn about the opportunities and pitfalls to be on the lookout for when looking to secure, protect, and enforce an IP portfolio overseas.

1 Nov 2017, Webinar, Boston, United States

Please join Foley Hoag on Wednesday, November 1, 2017 for a webinar that covers the details of drafting an appropriate arbitration clause for your company’s commercial contracts.

9 Nov 2017, Conference, Waltham, United States

Please join us on Thursday, November 9 at the Westin Waltham Hotel for our quarterly New England M&A Forum, which brings the latest in market trends and recent legal developments to the New England M&A professionals' community.

 
In association with
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.