According to Federal Court Decision, Disney Obligated to Pay Royalties to Stephen Slesinger, Inc. On All Uses of Winnie the Pooh by Disney and Its Worldwide Sublicensees
NEW YORK – (PRNewswire) United States District Court Judge Florence-Marie Cooper has confirmed that Stephen Slesinger's license of Pooh rights to Disney is "unambiguous" and entitles Slesinger to "royalties for all uses." On Friday, November 6, Stephen Slesinger, Inc. filed a notice of appeal to obtain unpaid past royalties from Disney as well as redress for Disney's past improper business practices.
Stephen Slesinger, Inc. pioneered "evergreen" equity branding for the character licensing industry in general and Winnie the Pooh in particular. Long before Disney, Stephen Slesinger created both "Classic" and "Red Shirt" Pooh brands, and before Slesinger, Pooh had never seen the outside of a black and white book.
Eric M. George of Browne Woods George, attorney for Slesinger, said, "The ruling confirms that Stephen Slesinger, Inc. is entitled to royalties every time Disney or its sublicensees use Winnie the Pooh. As Disney surely knows, its ability to enjoy the benefits of Slesinger's television, trademark, future media and brand equity rights to Pooh is only as certain as the accuracy of Disney's royalty statements to Slesinger."
Under the license agreement, Disney and its global sublicensees are required to separately report the gross revenues they generate from all uses of Pooh characters and may not mix up Pooh character revenues with non-Pooh characters such as Mickey Mouse. Slesinger's share of the gross receipts is about 1.5% to 2.5% while Disney and its sublicensees retain 97.5% to 98.5%..
"We hope that sensible Disney business and creative marketing people such as Bob Iger, Jay Rasulo, Andy Mooney and other prominent Disney executives will take this court ruling very seriously and will assure us of accuracy and transparency in reporting all of the Pooh uses, from now on," said Patricia Slesinger, President of Stephen Slesinger, Inc. We look forward to meeting with Disney to resolve all issues between our companies, but we are not certain our intention is getting past the formidable Disney legal barricade. Unfortunately, as long as opposing members of the bar are running interference, both Slesinger and Disney will continue to be challenged to waste valuable time and resources that could be used instead to create more happiness, laughs and smiles for children."