The fact that the original filmmakers and producers of Blair Witch sold their rights to the film shows either they had inept, incompetent representation, or they were incredibly naive, young and likely thought their film wouldn't become the pre-social media and box office success it did. Or perhaps a little bit of both and if that is the case, they are partly responsible, IMHO, for this mess their in for not getting proper legal representation.
Is it the film studios fault if you have improper, incompetent, incapable lawyers or agents way in over their heads and don't know how to negotiate effectively?