Appeals Court Denies Request to Reinstate Pooh Lawsuit

LOS ANGELES, September 26: A federal appeals court in
California has denied a petition by Stephen Slesinger Inc. to reinstate its
long-running case against The Walt Disney Company over royalties from Winnie
the Pooh.

In 2004, a Los Angeles court dismissed the suit brought by
Slesinger’s estate on the grounds that its legal team trespassed on Disney
property, finding documents related to the case in the company’s trash
receptacles. The suit was originally filed in 1991 by the widow and daughter of
Stephen Slesinger, the agent who secured the Pooh rights through a licensing
agreement with author A.A. Milne in 1931. Under a 1983 agreement, Slesinger
licensed Disney the U.S. and Canadian rights for radio and television,
merchandising and recording, among others. The Slesingers contend that Disney
owes them billions in unpaid royalties from the sale of Pooh videos, DVDs,
software and other products not specifically covered under deals with Disney
but allegedly promised to Slesinger by Disney representatives.

Meanwhile, Stephen Slesinger Inc. intends to ask the
California Supreme Court to review the Court of Appeal's decision.

In addition, Slesinger has said that it is moving forward
with plans to seek termination of Disney’s U.S. and Canadian television and
merchandising rights—which it says could cost The Walt Disney Company
upwards of $15 billion. Slesinger is also asking for compensatory and general
damages in excess of $2 billion.

Pati Slesinger, the owner of Stephen Slesinger Inc.,
commented: “Disney continues to breach our contract, and continues to infringe
our copyrights and trademarks. Every single day that Disney refuses to pay us
what they are contractually obligated to pay, there are new breaches, which
will only increase the many millions of dollars in damages they owe. Disney
knows this is not over and they know the reasons why."

She continued: "We will go as far as we have to go to
and seek whatever legal remedy we can to receive justice in this case. We will
vigorously pursue our legal rights in the federal court case, and in the
proceedings before the California Supreme Court, and believe that in the
fullness of time the company will obtain just compensation from Disney for
cheating our company out of royalties it owed and withheld."

In addition to the state case, Slesinger is pursuing claims
against Disney in federal court. Pending claims against Disney in Slesinger's
federal compliant 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;
declaratory relief; injunctive relief; violation of California's Business and
Professional Code; and unfair competition.