NOT-SO-SECRET WARS: THE CONFLICT OVER THE THEME PARK RIGHTS TO MARVEL CHARACTERS BETWEEN DISNEY AND UNIVERSAL
Author: Garrett Flynn, Associate Editor
The heroes of Marvel Comics have dominated pop culture for nearly two decades.[i] The Walt Disney Company’s 2009 acquisition of Marvel directly facilitated Marvel’s ascension to the zenith of public consciousness. However, Disney’s acquisition of Marvel did not include all of the intellectual property rights to Marvel’s library.[ii] The full theme park rights to some of Marvel’s most popular characters remain unavailable to Disney.[iii] Instead, Disney’s primary theme park rival, Universal Studios, owns the rights to use Marvel’s most popular characters in part of the United States.[iv] Universal has used Marvel characters at Marvel Superhero Island (MSI) in Orlando since 1999 due to a licensing agreement with Marvel signed fifteen years before Disney purchased Marvel.[v]
The limits imposed on Disney by the 1994 Universal contract have spawned numerous video essays and articles attempting to determine exactly what characters are available for Disney to use. Disney seems hesitant to push the boundaries of the contract, taking extreme measures to ensure its use of Marvel characters does not violate Universal’s rights under the licensing agreement. Because of this hesitancy, Disney has refused to use many of the Marvel characters it owns the theme park rights to out of confusion over rights or fear of litigation from Universal. Clarification on the exact characters Disney and Universal individually own the rights to may grant Disney more confidence to use Marvel characters without fear of litigation from Universal, allowing Disney to use the entirety of the Marvel rights it owns.
The Complex Confines of the Contract
Amid a massive financial slump, Marvel decided to license the theme park rights to its characters to Universal in 1994.[vi] The contract grants Universal the potential for exclusive and perpetual use of the Marvel characters.[vii] Under the contract, so long as Universal opened the Marvel-themed area within the required time frame, which Universal did, the agreement shall continue as long as the Marvel-themed land remains open.[viii] After MSI opened in 1999, the contract provided Universal the exclusive right to create subsequent attractions and lands based on Marvel characters at its other theme parks for two years.[ix]
After the two-year exclusivity period, the contract states that if Universal does not incorporate Marvel characters in its other theme parks, then exclusivity rights in the United States will only apply east of the Mississippi River.[x] Universal Orlando is the only Universal theme park that continues to use Marvel characters, shrinking Universal’s exclusivity rights to the United States east of the Mississippi River.[xi] This territorial contraction explains why Disney can use Marvel characters in California that Universal uses in Orlando.
The contract defines a character “used by Universal” as a character, or member of the same family of characters, used for more than an incidental element in an attraction, presented as a costumed character, or featured as more than an incidental element in the theming of a retail store or food facility.[xii] Members of a superhero team, in addition to any villain associated with a hero being used, constitute a “family” of characters.[xiii] As Universal’s license only includes the families of characters currently at MSI, Marvel owns the theme park rights to the characters outside of the families used by Universal.
Assembling Disney’s Roster of Usable Marvel Characters
MSI features four main attractions, each based on a Marvel character representing a distinct “family” of characters.[xiv] The Amazing Adventures of Spider-Man attraction heavily features Spider-Man and many of his villains.[xv] Similar attractions exist for characters from the Fantastic Four, the Avengers, and the X-Men families, granting Universal the exclusive right to use these families of characters east of the Mississippi River.[xvi]
In addition, MSI includes a sign that refers to two characters who have assumed the mantle of Ghost Rider.[xvii] The sign stands as incidental theming separate from any attraction or experience; therefore, the mere presence of the sign itself does not constitute use under the contract, granting Disney the right to use the character in Orlando.[xviii]
Meanwhile, Walt Disney World only features a single Marvel-based attraction.[xix] This attraction utilizes the Guardians of the Galaxy, a team of characters almost entirely unknown by the general public when Universal opened MSI.[xx] As Universal did not use any character within the Guardians of the Galaxy family before Disney acquired Marvel, Disney gained the rights to use the characters in their theme parks during the 2009 Marvel acquisition.[xxi]
Disney has only used one other Marvel character at Walt Disney World: Dr. Strange.[xxii] While the movies of the Marvel Cinematic Universe cemented Dr. Strange as a member of the Avengers in the public consciousness, the character did not join the team in the comics until 2011.[xxiii] Before this date, he was not closely associated with the Avengers or with any character used by Universal.[xxiv] Disney has used Dr. Strange at Walt Disney World twice without any action from Universal, effectively confirming that Disney has the rights to use the character in Orlando.[xxv]
While Disney has not used any other Marvel characters at Walt Disney World, the rights to any character that Universal Orlando did not use before 2009 have reverted to Marvel.[xxvi] Therefore, characters not included in the Spider-Man, Avengers, Fantastic Four, or X-Men families of characters are available for Disney to use in Orlando.
The Daredevil Delima
Similarly to Ghost Rider, references to Daredevil exist as incidental theming on a few building facades at MSI.[xxvii] Signs referencing the existence of Daredevil appear at MSI, but these signs are incidental theming elements that do not constitute “use” under contract.[xxviii] However, MSI opened with an arcade named after and bearing a large depiction of Daredevil’s archnemesis: the Kingpin.[xxix] Kingpin’s arcade remains open, bearing a depiction of Kingpin similar in size to other integral depictions of characters that prohibit Disney World from using those characters.[xxx]
Kingpin exists in a unique situation separate from the other villains “used” at MSI. While the other villains appear in addition to their associated heroes, Kingpin appears without Daredevil.[xxxi] Daredevil’s absence raises the question of whether the exclusivity rights to characters associated with a depicted character, typically used to cover undepicted villains and supporting characters of heroes who are “used” at MSI, work in reverse. If so, this makes Daredevil a character associated with the “use” of Kingpin, barring Disney from using Daredevil in Orlando.
While Kingpin has cemented himself as Daredevil’s archenemy, the character premiered as a Spider-Man villain and has continued to serve as a villain to Spider-Man.[xxxii] Therefore, Kingpin’s depiction at MSI may serve as “use” of a character within the Spider-Man family of characters. Disney’s Kingpin actor Vincent D’Onofrio stated that Disney only has the rights to use Kingpin for television and streaming series, while Sony owns the character’s film rights.[xxxiii] The rights to all other Daredevil characters and villains belong entirely to Marvel; however, Kingpin’s long association with Spider-Man seems to have permanently tied some of his rights with those of Spider-Man.[xxxiv]
Given the character’s complex intellectual property rights, longstanding history of association with Spider-Man, and the absence of any other Daredevil characters from MSI, it is most likely that Kingpin, as depicted at MSI, constitutes “use” of a character within the Spider-Man family of characters. As Daredevil himself only appears through incidental theming elements that do not constitute “use” under the contract, the rights to Daredevil and his associated characters and villains (excluding Kingpin) east of the Mississippi River belong to Disney.
Conclusion
Marvel’s history of financial hardship and tendency to sell the non-comic book rights to its characters led to the creation of Universal’s MSI. While the chance to license the theme park rights to its characters to Universal seemed like the chance of a lifetime in 1994, the contract now haunts Disney, the current owner of Marvel Entertainment. Due to the perpetual nature of the 1994 contract, Disney cannot use the most popular Marvel characters in its Orlando theme parks so long as Universal continues to do so. Disney has only recently incorporated any Marvel characters into its Florida theme parks, using only a few of the many characters not used by Universal. While Universal’s MSI prohibits Disney from using Marvel’s most notable characters at Walt Disney World, Disney can incorporate several popular Marvel characters into its Florida theme parks that Universal does not use at MSI.
Perhaps out of fear of litigation from Universal, Disney has been hesitant to use Marvel characters to the full extent that they are seemingly able to under the 1994 contract.[xxxv] Many sources have previously tried to determine precisely what characters Disney can use in Orlando, yet these sources fail to fully consider the provisions of the contract as they apply to the relationships between characters and to incidentally referenced characters.[xxxvi]
By examining the characters Disney has used without a suit from Universal, as well as the relationships between featured and unfeatured characters, a wide number of Marvel characters (including but not limited to those listed in this blog) are available for use at Walt Disney World. Through determining exactly where Universal’s exclusivity rights end and Disney’s right to use their intellectual property begins, theme park enthusiasts and the corporations themselves can understand the characters each company can use in its parks moving forward.
[i] Henry Chukwunwike Morgan-Dibie, Marvel vs. DC: A Comprehensive Analysis of Cinematic Universes, MEDIUM (June 30, 2024), https://medium.com/@KingHenryMorgansDiary/marvel-vs-dc-a-comprehensive-analysis-of-cinematic-universes.
[ii] Brian Glenn, That Darn Marvel Contract- What Rights Does Universal and Disney Own, INSIDE UNIVERSAL (May 6, 2016), https://www.insideuniversal.net/2016/05/darn-marvel-contract-what-rights-does-universal-and-disney-own.
[iii] Id.
[iv] Id.
[v] Id.
[vi] Ryan Lambie, How Marvel Went From Bankruptcy to Billions, DEN OF GEEK (Apr. 17, 2018), https://www.denofgeek.com/movies/how-marvel-went-from-bankruptcy-to-billions/.
[vii] Glenn, supra note ii.
[viii] U.S. SECURITIES AND EXCHANGE COMMISSION, EXHIBIT NO. 10.57, AGREEMENT BETWEEN MCA INC. AND MARVEL ENTERTAINMENT GROUP (1994), https://www.sec.gov/Archives/edgar/data/1262449/000119312510008732/dex1057.htm.
[ix] Id. at § IV(B)(1).
[x] Id. at § IV(B)(1)(a).
[xi] Id.
[xii] Id. at § IV(B)(1)(a)(1)(i).
[xiii] Id.
[xiv] Marvel Superhero Island, UNIVERSAL ORLANDO RESORT, https://www.universalorlando.com/web/en/us/islands-of-adventure/lands/marvel-super-hero-island (last visited Apr. 13, 2025).
[xv] The Amazing Adventures of Spider-Man, UNIVERSAL ORLANDO RESORT, https://www.universalorlando.com/web/en/us/things-to-do/rides-attractions/the-amazing-adventures-of-spider-man (last visited Apr. 13, 2025).
[xvi] Marvel Superhero Island, supra note viii.
[xvii] Joshua Lapin-Bertone, The coolest Marvel Universe Easter eggs you’ll find at Universal’s Marvel Superhero Island, POPVERSE (Dec. 26, 2023), https://www.thepopverse.com/universal-marvel-superhero-island-easter-eggs-theme-park.
[xviii] A Superhero Fan’s Guide to Universal Orlando Resort, UNDERCOVER TOURIST, https://www.undercovertourist.com/blog/superhero-universal-orlando (last visited Mar. 16, 2025).
[xix] See Guardians of the Galaxy: Cosmic Rewind, WALT DISNEY WORLD, https://disneyworld.disney.go.com/attractions/epcot/guardians-of-the-galaxy-cosmic-rewind/ (last visited Apr. 23, 2025).
[xx] Glenn, supra note ii.
[xxi] Id.
[xxii] Savannah Sanders, Every Marvel Character Disney Legally Can Include at Its Park, THE DIRECT (Jan. 02, 2024), https://thedirect.com/article/marvel-character-disney-world-legal-include-park.
[xxiii] Shannen Ace, Dr. Strange Makes Surprise Appearance at Disney Jollywood Nights, WDW NEWS TODAY (Nov. 9, 2024), https://wdwnt.com/2024/11/dr-strange-makes-surprise-appearance-at-disney-jollywood-nights.
[xxiv] Tristan Benns, Doctor Strange: How the Sorcerer Supreme Finally Joined the Avengers, COMIC BOOK RESOURCES (May 1, 2021), https://www.cbr.com/doctor-strange-joined-new-avengers.
[xxv] Glenn, supra note ii.
[xxvi] Agreement Between MCA Inc. and Marvel Entertainment Group, supra note viii.
[xxvii] Lapin-Bertone, supra note xxii.
[xxviii] Agreement Between MCA Inc. and Marvel Entertainment Group, supra note viii.
[xxix] Kingpin’s Arcade, UNIVERSAL ORLANDO RESORT, https://www.universalorlando.com/web/en/us/things-to-do/entertainment/kingpins-arcade (last visited Apr. 13, 2025).
[xxx] Id.
[xxxi] Marvel SuperHero Island, supra note xiv.
[xxxii] William Pagent, How Kingpin’s First Appearances Shaped Him Into Becoming One of Spider-Man’s Greatest Enemies, COMIC BOOK RESOURCES (Aug. 2, 2023), https://www.cbr.com/kingpin-marvel-comics-history-spiderman-greatest-villain/.
[xxxiii] Eric Diaz, Vincent D’Onofrio Says His Kingpin Legally Can’t Appear on the Big Screen, NERDIST (Apr. 4, 2025), https://nerdist.com/article/vincent-donofrio-says-his-kingpin-legally-cant-appear-mcu-movies/.
[xxxiv] Id.
[xxxv] See Jon Self, Marvel at Disney World- Guardians of the Galaxy Ride, MORE Marvel Coming?, MICKEYVISIT (Feb. 4 2025), https://mickeyvisit.com/marvel-at-disney-world/.
[xxxvi] See Glenn, supra note ii; Sanders, supra note xxii.