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Intellectual property

In 2017, POW! was acquired by Camsing International, a Chinese company, during the period Lee was caring for his terminally ill wife and dealing with his own failing eyesight. Lee filed a US$1 billion lawsuit against POW! in May 2018, asserting that POW! had not disclosed the terms of its acquisition by Camsing to him. Lee stated that POW! CEO Shane Duffy and co-founder Gill Champion had presented him with what they said was a non-exclusive license for POW! for him to sign, under Camsing, to use his likeness and other intellectual property. This contract turned out to be an exclusive license, which Lee claimed he would never have entered.

Lee's lawsuit contended that POW! took over his social media accounts and was impersonating him inappropriately. POW! considered these complaints without merit and claimed that both Lee and his daughter J.C. were aware of the terms. The lawsuit was dropped in July 2018, with Lee issuing the statement: "The whole thing has been confusing to everyone, including myself and the fans, but I am now happy to be surrounded by those who want the best for me" and saying that he was happy to be working with POW! again.

Following Lee's death, his daughter J.C. gathered a legal team to review the legal situation relating to Lee's intellectual property from his later years. In September 2019, J.C. filed a new lawsuit against POW! in the United States District Court for the Central District of California not only related to recent events but also to regain the intellectual property rights that Lee had set up when founding Stan Lee Entertainment in 1998. The complaint identified a period between 2001 and 2017 during which Lee's partners Gill Champion and Arthur Lieberman were said to have misled Lee about various intellectual property rights deals.

In June 2020, Judge Otis D. Wright II dismissed J.C. Lee's lawsuit against POW! Entertainment, declaring it "frivolous" and "improper", sanctioning J.C. Lee for $1,000,000, and sanctioning her lawyers for $250,000 individually and severally. The court also gave POW! Entertainment the right to make a motion to recover legal fees. "We feel vindicated by the Court's decision today," said POW! in a statement. "Stan purposefully created POW! eighteen years ago with me as a place to safeguard his life's work. Before he passed, Stan was adamant that POW! continue to protect his creations and his identity after he was gone, because he trusted that we would safeguard his legacy for generations to come."