A lawsuit claiming THE WALT DISNEY COMPANY owes hordes of cash in royalties from merchandising profits on 1988 film Who Framed Roger Rabbit has been reinstated.

GARY K WOLF, who wrote the 1981 novel on which the movie was based, claims Disney owes him a five per cent royalty from non-cash licensing agreements they made with fast food chain McDONALD'S and other companies to use characters from the film.

Disney contends the royalty agreement with Wolf only covered cash transactions for the film, which grosses nearly $250 million (GBP147 million).

A lower court threw out Wolf's 2001 lawsuit, but on Wednesday (21JAN04), the California state 2ND DISTRICT COURT OF APPEAL reinstated it.

Disney attorney MARTIN KATZ says the ruling throws the matter back to the lower court, where he expects the company will win again. A hearing date has yet to be set.

26/01/2004 09:17