Why we will never see a Watchmen movie

Aside from the Fox litigation issue … here’s two good reasons:
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Courtroom Drama: Lawsuits for Watchmen, Passion

Fox is suing Warner Bros. over â..the right to develop, produce, and distributeâ. a film based on Watchmen. The Warners-produced, Zack Snyder directed version of the graphic novel has been tentatively scheduled for a March 2009 release. However, as stated in The Hollywood Reporter, Fox could put a stop to that, staing in its lawsuit that it seeks to â..restrain (Warner Bros. Pictures) from taking actions that violate Foxâ..s copyrights and which stand to forever impair Foxâ..s rights to control the distribution and development of this unique work.â.
Fox claims that between 1986 and 1990, it held the rights to the comic book series and screenplays by Charles McKdown and Sam Hamm. In 1991, Fox assigned some rights to Largo International, but retained the exclusive rights to distribute the first film based on Watchmen.