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BERLIN — The German film industry could be facing a catastrophe if lawmakers don’t speed up a new legal framework for the country’s federal film subsidy program.

A federal court ruled last month that the levy industryites pay to the German Federal Film Board (FFA) is unconstitutional because theatrical exhibs and home entertainment distribs are legally required to pay while TV broadcasters’ contributions are voluntary.

With no new legal system in sight, the Berlin-based Alliance of German Producers Monday issued a warning that unless a solution is found, film production in Germany could drop by half this year and a slew of production companies may sink into bankruptcy.

This could also affect international productions. Among recent pics that have received FFA coin are Stephen Daldry’s Oscar-winning “The Reader” and Michael Hoffman’s upcoming Leo Tolstoy biopic “The Last Station,” starring Helen Mirren and Christopher Plummer.

Before the court ruling, a number of exhibs had decided to pay the levy under caveat — a legal notice stipulating objections and blocking the FFA from spending the millions it receives until the matter is settled.

The producers’ alliance said more exhibs, distribs and possibly even TV broadcasters may do the same thing until new legislation is written.

If this happens, the FFA will be forced to cut its overall subsidy budget, currently around $90 million a year, which the producers’ alliance says would have “catastrophic effects on film production.”

Theatrical exhib body HDF Kino is set to meet today and expected to advise its members on any further action, while FFA officials will gather Friday to discuss the impending crisis and possibly rule on releasing emergency funds.

Ed Meza

Can Warners’ “Watchmen” – which will see the widest opening ever for an R-rated pic — live up to the hype?

The film, based on the iconic graphic novel about a group of vigilante superheroes, is generating as much buzz as a summer tentpole, both because of the source material and the runaway success of “300,” director Zack Snyder’s last film, also for Warners.

When it bowed in 2007, “300″ became the highest March opener of all time at $70.9 million. Four hours prior to its East Coast release, �Watchmen� has already sold more advance tickets at MovieTickets.com than director Zack Snyder�s �300� did in 2007.

As the only new wide release of the weekend, “Watchmen” is also the first day-and-date release of 2009, distributed by Paramount overseas. Domestically, Warners Bros. is taking “Watchmen” out in 3,611 theaters.

Previous widest opening for an R-rated pic was “The Matrix Reloaded” at 3,603. There are plenty of players in the mix on the pic. Par and Warners are partners on the film, while Fox will get a cut of WB’s take under the terms of a legal settlement between the studios.

Warners’ partner Legendary Pictures also helped finance. Box office observers are unanimous in predicting a big opening for “Watchmen.” They diverge, however, when it comes to how high the number will be and whether the pic will match or better “300’s” debut. The movie has some distinct challenges.

The biggest is its running time of 2 hours, 40 minutes; “300″ was under two hours. Also, “Watchmen” is considered a “hard R” because of its graphic sex and violence. But if the box office boom of recent months continues, “Watchmen” could join a list of films that have overperformed.

Domestically, “Watchmen” is tracking strongest among older fanboys — those between 25 and 34 — who are more interested in “Watchmen” than they were in “300.” Younger men are also showing plenty of interest, though not as much as for “300.”

Females are showing interest, but also not as much as they had for “300.” Film’s domestic gross will be boosted by its Thursday midnight shows, as well as its 124 Imax runs. Cast includes Matthew Goode, Billy Crudup, Patrick Wilson and Jackie Earle Haley.