By 1927, Charles B. Mintz had married Margaret Winkler and assumed control of her business, and ordered a new all-animated series to be put into production for distribution through Universal Pictures. The new series, "Oswald the Lucky Rabbit", was an almost instant success, and the Oswald character, first drawn and created by Iwerks, became a popular property. The Disney studio expanded, and Walt hired back Harman, Ising, Maxwell, and Freleng from Kansas City.
In February of 1928, Disney went to New York to negotiate a higher fee per short from Mintz. Disney was shocked when Mintz announced that not only he wanted to reduce the fee he paid Disney per short but also that he had most of his main animators, including Harman, Ising, Maxwell, and Freleng (notably excepting Iwerks) under contract and would start his own studio if Disney did not accept the reduced production budgets. Universal, not Disney, owned the Oswald trademark, and could make the films without Disney.
Disney declined Mintz's offer and lost most of his animation staff. The defectors became the nucleus of the Winkler Studio, run by Mintz and his brother-in-law George Winkler. When that studio went under after Universal assigned production of the Oswald shorts to an in-house division run by Walter Lantz, Mintz focused his attentions on the studio making the "Krazy Kat" shorts, which later became Screen Gems, and Harman, Ising, Maxwell, and Freleng marketed an Oswald-like character named Bosko to Leon Schlesinger and Warner Bros., and began work on the first entries in the Looney Tunes series.
It took Disney's company 78 years to get back the rights to the Oswald character. In a move that sent sports broadcaster Al Michaels to NBC Sports for their Sunday night NFL coverage, the Walt Disney Company reacquired the rights to Oswald the Lucky Rabbit from NBC Universal in 2006.
Oswald the Lucky Rabbit
