The massively successful Terrifier horror franchise is facing a legal battle that could have major implications for Art the Clown 's future. Ruthless Studios filed a lawsuit in federal court in California, accusing production companies Dark Age Cinema and Art the Clown LLC of copyright infringement, trademark infringement, unfair competition, and improperly profiting from the Terrifier franchise without authorization. At the center of the dispute is a series of agreements signed in 2013 between filmmaker Damien Leone and Ruthless Pictures, whose rights were later assigned to Ruthless Studios. According to the complaint, Leone transferred ownership of the original Terrifier and The 9th Circle short films, along with related copyrights, trademarks, sequel rights, and derivative works, to the company for $5,000. The lawsuit alleges those agreements gave Ruthless ownership of "the right to produce audiovisual works of all types ...…