Court Revives ‘Roger Rabbit’ Royalties Suit

Walt Disney Co. must face a claim by the author of the book behind the film “Who Framed Roger Rabbit” that the company cheated him out of royalties, an appeals court ruled.

The California Court of Appeal in Los Angeles reinstated claims by Gary Wolf, who created Roger Rabbit and other Toontown characters in his 1981 “Who Censored Roger Rabbit?,” that Disney owes him a 5% royalty from licensing agreements with McDonald’s Corp. and other companies.

Disney said the term “gross receipts” means Wolf receives royalties only from deals that involved cash, while Wolf contended that he’s entitled to a share of promotional agreements for which Disney didn’t receive monetary payment.

Shares of Disney rose 12 cents to $24.70 on the NYSE.