Battle of the "Avatars": M. Night vs. J. Cameron?

No it's not a slugfest; the directors aren't in any feud, but I thought this was interesting. First off, James Cameron is finally returning to the sci-fi genre that he conquered so well in his early career. The director of "The Abyss", "Aliens" and the first two "Terminator" films (as well as "Titanic") has been planning this movie for a long time. I don't know much about it, but it seems like its been in development hell for awhile. Fox has finally agreed to finance a 2009 release for Cameron's original film "Avatar". It will be his first feature film since "Titanic".
Here's where it gets juicy. Apparently hours after Fox announced Cameron's "Avatar", Paramount announced their project with M. Night Shyamalan based on the Nickelodeon cartoon series, "Avatar: The Last Airbender". As I type this I must admit my confusion. M. Night has not had the best luck since "Signs". "The Village" is about as respectable as "Daredevil" and while I really liked "Lady in the Water", it wasn't quite up to par with his first three films. Now, after establishing himself as an original storyteller, why go off and do a franchise-- A mainstream, kiddie franchise from Nickelodeon and the loathsome MTV Films? Is he willing to sellout this easily? Or does he have a plan to make something out of this show? I don't know. I like M. Night, but I was hoping his next movie would be something truly grand. "Avatar: The Last Airbender" wasn't quite what I meant... On the other hand I've heard he has other ideas planned, so maybe "Airbender" won't be his very next project.
In any case the battle isn't between the directors, but the studios. Fox is angry that Parmount is making a movie with "Avatar" in the title and claim they, "own the movie title 'Avatar.' There won't be another film called 'Avatar' coming from any place." (A Fox rep.)
Ok, this is absurd! I'm excited about Cameron's "Avatar" and I don't know what the hell is going on with M. Night and this Nick cartoon show, but Fox "owns" the word "Avatar"? Ok college undergrads! Everytime you use the word "avatar" make sure you have a big, fat, copyright key to hit after it's typed!
Can I point out something: http://www.imdb.com/find?s=all&q=hero
If you go to this link you'll see around 20 movies with the same title, "Hero". Just let them make the friggen movie! It isn't going to hurt business. The movies will be aimed at completely different audiences and Paramount's film seems further on the back burner than Cameron's. I'll be surprised if that movie with M. Night gets made.
Anyway, I'm looking forward to Cameron's new sci-fi epic and whatever M. Night does, I know atleast my little sister would enjoy an "Avatar: The Last Airbender" movie.