Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 13, 1991 TAG: 9103130105
SECTION: EXTRA PAGE: E-8 EDITION: METRO
SOURCE: Los Angeles Daily News
DATELINE: LOS ANGELES LENGTH: Medium
Stephen Slesinger Inc. claims Disney broke its contract by failing to pay the estate for using Pooh in videos and other merchandise sold in North America, according to court documents.
The lawsuit comes as several contributors to animated movies made before the advent of home videocassettes, including singer Peggy Lee, also seek royalties from Disney.
But Disney attorney Peter Nolan said Monday the company bought out much of Slesinger's merchandising rights in 1961, and in 1983 signed a second contract to obtain all film rights to Pooh and the other characters created in 1924 by the English author A.A. Milne.
Slesinger bought the rights to Pooh from Milne in 1930 and Disney paid Slesinger a flat rate for the film rights, Nolan said. The company contends those rights include videocassettes, Nolan said.
Attorneys for the Slesinger estate did not return calls Monday, but in the suit, filed Feb. 27 in Los Angeles Superior Court, they claim the estate is entitled to separate payments for sales of tapes.
"Disney has, in breach of the contract, failed to make various payments due to Slesinger," the suit states. "Disney has failed to pay royalties on revenues it has obtained with respect to sale of videocassettes."
Disney has released a number of videocassettes featuring the bear, Nolan said, including a 22-minute animated feature "Winnie the Pooh and the Blustery Day," and a number of episodes of "Pooh Corner," a television series that appeared on the Disney Channel.
Nolan would not say how much the company made from the cassettes, nor how much Slesinger received for the film rights. Nolan said that Disney has been negotiating with attorneys for Slesinger over the matter for the last eight years.
by CNB