The producer won a separate case over the broader rights to the film previous year, a verdict Gilliam has appealed.
At a stand up press briefing on Wednesday afternoon in Cannes, Branco distributed a legal letter dated 14 February, showing that neither Kinology or producer Tornasol Films owned the rights.
Taking the Twitter on Wednesday, the 77-year-old filmmaker said, "after days of rest and prayers to the Gods, I am restored and well again". May 19. Thanks for all your support. Terry's lawyer, Benjamin Sarfaty, said that banning the film from Cannes was "not justified".
In the underlying litigation, Branco claims he was wrongly cut out as a producer on "Don Quixote", in breach of an agreement he and Gilliam signed in 2016.
"For more than 20 years this film was nearly buried by various obstacles and many have said on various occasions that there was a curse on this movie", he said.
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The film has been plagued with difficulties since production began back in 2008 with Johnny Depp cast as the leading role.
Gilliam's various attempts to shoot the surreal story, based on Cervantes' "unfilmable" novel, have been beset by a series of calamities, some of them recounted in the acclaimed 2002 documentary, "Lost in La Mancha".
The final hurdle, seemingly in place to stop Terry Gilliam's long-awaited, decades-in-the-making passion project The Man Who Killed Don Quixote from seeing the light of day, has been cleared.
A host of Hollywood stars including Ewan McGregor, John Hurt, Robert Duvall and Jack O'Connell were later linked with the project, but each time the production fell through.
And now other reports put the future of the so-called "cursed" film, which stars Jonathan Pryce and Adam Driver, in further jeopardy.