Darkbeer
04-09-2007, 08:17 PM
Slesinger Inc. Press Release
Disney Cancels Mediation Conference In Federal Court
Slesinger Moves Forward with Claims for Damages and Termination of Disney's U.S. and Canadian Rights to Winnie the Pooh Walt Disney Company Could Lose Over $15 Billion in Value Following Termination of Its Winnie the Pooh Franchise
LOS ANGELES, April 9 -- A mediation conference to settleclaims by Stephen Slesinger, Inc. (Slesinger) against the Walt Disney Company was abruptly canceled by Disney. Under court order, Disney would have been required to produce, at the mediation, a board member with authority to settle Slesinger's California claims. Disney canceled at the last minute instead.
The mediation was scheduled after Judge Florence-Marie Cooper of the United States District Court for the Central District of California ruled on February 15 that an effort supported and funded by Disney to terminate Slesinger's copyright rights was invalid, and granted summary judgment on Disney's claims in favor of Slesinger. In light of that ruling, with no mediation now scheduled, Slesinger intends to proceed in federal court with its nine counter claims seeking, among other relief, monetary damages in excess of $2 billion and termination of all rights licensed by Slesinger to Disney. Those rights include the bulk of Disney's interests in Winnie the Pooh in the U.S. and Canada, worth billions of dollars.
Under a 1983 agreement, Slesinger licensed Disney U.S. and Canadian rights for radio, television and other broadcasting rights; merchandising rights; recording rights, among other rights. As pled by Slesinger, all of these rights stand to revert to Slesinger because of Disney's alleged material breaches of its agreement with Slesinger. These serious breaches of contract include Disney's failure to pay royalties and its failed scheme to avoid payment obligations to Slesinger through the invalid attempt to terminate Slesinger's contractual rights.
Slesinger's claims against Disney in the federal court proceeding include: infringement of rights under the United States Copyright Act; trademark infringement; trade dress infringement; breach of contract; breach of the implied covenant of good faith and fair dealing; fraud; injunctive relief; violation of California's Business and Professional Code; and unfair competition. Barry Slotnick, Slesinger's attorney, from the law firm of Buchanan Ingersoll Rooney, said, "The Court has reaffirmed Slesinger's rights under copyright in Winnie the Pooh. Disney's chance to resolve Slesinger's claims through settlement rather than risk potentially catastrophic losses is behind us. Disney walked away from the table."
Disney Cancels Mediation Conference In Federal Court
Slesinger Moves Forward with Claims for Damages and Termination of Disney's U.S. and Canadian Rights to Winnie the Pooh Walt Disney Company Could Lose Over $15 Billion in Value Following Termination of Its Winnie the Pooh Franchise
LOS ANGELES, April 9 -- A mediation conference to settleclaims by Stephen Slesinger, Inc. (Slesinger) against the Walt Disney Company was abruptly canceled by Disney. Under court order, Disney would have been required to produce, at the mediation, a board member with authority to settle Slesinger's California claims. Disney canceled at the last minute instead.
The mediation was scheduled after Judge Florence-Marie Cooper of the United States District Court for the Central District of California ruled on February 15 that an effort supported and funded by Disney to terminate Slesinger's copyright rights was invalid, and granted summary judgment on Disney's claims in favor of Slesinger. In light of that ruling, with no mediation now scheduled, Slesinger intends to proceed in federal court with its nine counter claims seeking, among other relief, monetary damages in excess of $2 billion and termination of all rights licensed by Slesinger to Disney. Those rights include the bulk of Disney's interests in Winnie the Pooh in the U.S. and Canada, worth billions of dollars.
Under a 1983 agreement, Slesinger licensed Disney U.S. and Canadian rights for radio, television and other broadcasting rights; merchandising rights; recording rights, among other rights. As pled by Slesinger, all of these rights stand to revert to Slesinger because of Disney's alleged material breaches of its agreement with Slesinger. These serious breaches of contract include Disney's failure to pay royalties and its failed scheme to avoid payment obligations to Slesinger through the invalid attempt to terminate Slesinger's contractual rights.
Slesinger's claims against Disney in the federal court proceeding include: infringement of rights under the United States Copyright Act; trademark infringement; trade dress infringement; breach of contract; breach of the implied covenant of good faith and fair dealing; fraud; injunctive relief; violation of California's Business and Professional Code; and unfair competition. Barry Slotnick, Slesinger's attorney, from the law firm of Buchanan Ingersoll Rooney, said, "The Court has reaffirmed Slesinger's rights under copyright in Winnie the Pooh. Disney's chance to resolve Slesinger's claims through settlement rather than risk potentially catastrophic losses is behind us. Disney walked away from the table."