section_path: Career/Intellectual property disputes
section_name: Intellectual property disputes
paragraph_text: Intellectual property disputes
  
  In 1993, Gaiman was contracted by Todd McFarlane to write a single issue of Spawn, for Image Comics, which McFarlane had recently co-founded. McFarlane was promoting his new title by having guest authors Gaiman, Alan Moore, Frank Miller, and Dave Sim each write a single issue.
  
  In issue No. 9 of the series, Gaiman introduced the characters Angela, Cogliostro, and Medieval Spawn. Prior to this issue, Spawn was an assassin who worked for the government and came back as a reluctant agent of Hell but had no real direction in his actions. In Angela, a cruel and malicious angel, Gaiman introduced a character who threatened Spawn's existence, as well as providing a moral opposite. Cogliostro was introduced as a mentor character for exposition and instruction, providing guidance. Medieval Spawn introduced a history and precedent that not all Spawns were self-serving or evil, giving additional character development to Malebolgia, the demon that creates Hellspawn.
  
  As intended, all three characters were used repeatedly throughout the next decade by Todd McFarlane within the wider Spawn universe. In papers filed by Gaiman in early 2002, however, he claimed that the characters were jointly owned by their scripter (himself) and artist (McFarlane), not merely by McFarlane in his role as the creator of the series. Disagreement over who owned the rights to a character was the primary motivation for McFarlane and other artists to form Image Comics (although that argument related more towards disagreements between writers and artists as character creators). As McFarlane used the characters without Gaiman's permission or royalty payments, Gaiman believed his copyrighted work was being infringed upon, which violated their original oral agreement. McFarlane initially agreed that Gaiman had not signed away any rights to the characters, and negotiated with Gaiman to effectively "swap" McFarlane's interest in the character Marvelman. McFarlane had purchased an interest in the character when Eclipse Comics was liquidated while Gaiman was interested in being able to continue his aborted run of the Marvelman title. McFarlane later changed his initial position, claiming that Gaiman's work had only been work-for-hire and that McFarlane owned all of Gaiman's creations entirely. The presiding judge, however, ruled against their agreement being work for hire, based in large part on the legal requirement that "copyright assignments must be in writing."
  
  The Seventh Circuit Court of Appeals upheld the district court ruling in February 2004 granting joint ownership of the characters to Gaiman and McFarlane. On the specific issue of Cogliostro, presiding Judge John C. Shabaz proclaimed, "The expressive work that is the comic-book character Count Nicholas Cogliostro was the joint work of Gaiman and McFarlane—their contributions strike us as quite equal—and both are entitled to ownership of the copyright". Similar analysis led to similar results for the other two characters, Angela and Medieval Spawn.
  
  This legal battle was brought by Gaiman and the specifically formed Marvels and Miracles, LLC, which Gaiman had previously created to help sort out the legal rights surrounding Marvelman. Gaiman had written Marvel 1602 in 2003 to help fund this project and all of Gaiman's profits for the original issues of the series were donated to Marvels and Miracles. The rights to Marvelman were subsequently purchased, from original creator Mick Anglo, by Marvel Comics in 2009.
  
  Gaiman returned to court again over the Spawn characters Dark Ages Spawn, Domina, and Tiffany, claiming that they were "derivative of the three he co-created with McFarlane." The judge ruled that Gaiman was right in these claims as well and gave McFarlane until the beginning of September 2010 to settle the matter.
  
  In 1993, Gaiman was contracted by Todd McFarlane to write a single issue of Spawn, for Image Comics, which McFarlane had recently co-founded. McFarlane was promoting his new title by having guest authors Gaiman, Alan Moore, Frank Miller, and Dave Sim each write a single issue.
  
  In issue No. 9 of the series, Gaiman introduced the characters Angela, Cogliostro, and Medieval Spawn. Prior to this issue, Spawn was an assassin who worked for the government and came back as a reluctant agent of Hell but had no real direction in his actions. In Angela, a cruel and malicious angel, Gaiman introduced a character who threatened Spawn's existence, as well as providing a moral opposite. Cogliostro was introduced as a mentor character for exposition and instruction, providing guidance. Medieval Spawn introduced a history and precedent that not all Spawns were self-serving or evil, giving additional character development to Malebolgia, the demon that creates Hellspawn.
  
  As intended, all three characters were used repeatedly throughout the next decade by Todd McFarlane within the wider Spawn universe. In papers filed by Gaiman in early 2002, however, he claimed that the characters were jointly owned by their scripter (himself) and artist (McFarlane), not merely by McFarlane in his role as the creator of the series. Disagreement over who owned the rights to a character was the primary motivation for McFarlane and other artists to form Image Comics (although that argument related more towards disagreements between writers and artists as character creators). As McFarlane used the characters without Gaiman's permission or royalty payments, Gaiman believed his copyrighted work was being infringed upon, which violated their original oral agreement. McFarlane initially agreed that Gaiman had not signed away any rights to the characters, and negotiated with Gaiman to effectively "swap" McFarlane's interest in the character Marvelman. McFarlane had purchased an interest in the character when Eclipse Comics was liquidated while Gaiman was interested in being able to continue his aborted run of the Marvelman title. McFarlane later changed his initial position, claiming that Gaiman's work had only been work-for-hire and that McFarlane owned all of Gaiman's creations entirely. The presiding judge, however, ruled against their agreement being work for hire, based in large part on the legal requirement that "copyright assignments must be in writing."
  
  The Seventh Circuit Court of Appeals upheld the district court ruling in February 2004 granting joint ownership of the characters to Gaiman and McFarlane. On the specific issue of Cogliostro, presiding Judge John C. Shabaz proclaimed, "The expressive work that is the comic-book character Count Nicholas Cogliostro was the joint work of Gaiman and McFarlane—their contributions strike us as quite equal—and both are entitled to ownership of the copyright". Similar analysis led to similar results for the other two characters, Angela and Medieval Spawn.
  
  This legal battle was brought by Gaiman and the specifically formed Marvels and Miracles, LLC, which Gaiman had previously created to help sort out the legal rights surrounding Marvelman. Gaiman had written Marvel 1602 in 2003 to help fund this project and all of Gaiman's profits for the original issues of the series were donated to Marvels and Miracles. The rights to Marvelman were subsequently purchased, from original creator Mick Anglo, by Marvel Comics in 2009.
  
  Gaiman returned to court again over the Spawn characters Dark Ages Spawn, Domina, and Tiffany, claiming that they were "derivative of the three he co-created with McFarlane." The judge ruled that Gaiman was right in these claims as well and gave McFarlane until the beginning of September 2010 to settle the matter.