For the first time, kids (and bigger kids) can truly join in the action of the next BATMAN animated series. Warner Bros. Consumer Products (WBCP) announced it has partnered with Mattel Inc. and VEIL Interactive Technologies to link action figure and vehicles with interactive television. The technology will be exclusive to WBCP and Mattel for 2004. VEIL (Video Encoded Invisible Light) technology transmits encoded digital data -- in the form of graphics, storyline components, gadgets and other features -- directly from show, which is captured by Mattel's new line of Batwave children's toys.

Broadcasters may have to rethink how adult their adult animation gets now that the U.S. House of Representatives overwhelmingly passed legislation increasing the maximum fine for radio and TV indecency from $11,000 to $500,000, reports the ASSOCIATED PRESS.

The vote was 391-22. A U.S. Senate bill is under discussion. The bill raises the maximum fine for a broadcast license-holder from $27,500 to $500,000 and the fine for a performer from $11,000 to $500,000.

American Royal Arts has announced the very first release of signed original production artwork from Nickelodeon's SPONGEBOB SQUAREPANTS. The collection of cels and drawings are from various episodes, including the world premier releases of "Squidward, the Unfriendly Ghost" and "Jellyfish Jamboree." Each piece is hand-signed by the voice of SpongeBob -- Tom Kenny. American Royal Arts is offering original production drawings, original production cels, cel progressions and key master set-ups.

On March 3, 2004, the YU YU HAKUSHO fast food promotion began at Carl's Jr. and Hardee's restaurants nationwide. The promotion features character premiums based on the animated action series YU YU HAKUSHO that airs on Cartoon Network's Toonami block.

Disney veteran animators Tom Bancroft and Rob Corley have formed a new animation development company, Funnypages Prods. Llc, which joins their already existing subsidiary comic book publishing company, Funnypages Press in Orlando, Florida. Funnypages Prods. will offer a full range of animation production as well as illustration, character design and artistic development. The animation house has also developed many original properties for film and television.

Marvel Enterprises Inc. has released its financial results for its fourth quarter and year ended December 31, 2003, in addition to a three-for-two stock split in the form of a stock dividend of one additional share of the company's common stock for every two shares held. The additional shares will be distributed on March 26, 2004 to stockholders of record on March 12, 2004.

A whopping 43% of Walt Disney Co. shareholders voted against retaining Michael Eisner as chairman and ceo today (March 3, 2004) in Philadelphia, delivering a stunning blow that lead to the Disney board of directors stripping Eisner of his chairman title within hours after the vote, the strongest rebuke in U.S. corporate history. The Disney board then elected former U. S. Senator George Mitchell to the newly created position of chairman of the board.

After three successful years rhinofx, the New York visual effects studio, has launched a new division offering 3D previsualization. Having ventured into visual effects projects for film, television and video games, rhinofx is doubling its workspace in their New York midtown office building. A larger workforce and more artist stations are in place and previs services are being ramped up to form the new division called rhinofx previz.

A day before the Walt Disney Co.'s annual shareholder meeting in Philadelphia, ex-directors Roy Disney and Stanley Gold proclaimed at a news conference they will work as long as it takes to oust Disney chairman and ceo Michael Eisner. They believe that a dissenting vote of 15-20% will be sufficient. Gold said whatever the outcome they are not going away. They hope to rally as many as 1,000 shareholders during their 15-minute presentation at Wednesday's (March 3, 2004)10:00 am meeting (EST), which will be Webcast live at www.disney.com/investors.

Six more state pension funds lined up Thursday to oppose the reelection of chairman Michael Eisner to the Walt Disney Co. board. Funds in New York, New Jersey, Connecticut, Massachusetts and Virginia plus the California State Teachers Retirement System joined the California Public Employees Retirement System in withholding support for the embattled Eisner, according to Bloomberg.

The founders, the stockholders and now the Canadian authorities have approved the sale of CINAR Corp. to the investor group comprised of Michael Hirsh, Toper Taylor and TD Capital Canadian Private Equity Partners through 4113683 Canada Inc. ("Newco").

The Quebec Superior Court granted approval by Justice Joel A. Silcoff, on Feb. 25, 2004, following a hearing in Montreal, on February 19 and 20.

The California Public Employees’ Retirement System (CalPERS), the 29th largest single shareholder in Disney, has announced its decision to withhold voting for Michael Eisner for the position of chairman/ceo of The Walt Disney Company at Disney’s annual shareholder meeting on March 3, 2004. CalPERS cited the firm’s dismal performance for the past five years and its lack of confidence in the long-term strategic vision of the company for its decision.

Oh, it's happy, happy, joy, joy time for Ren and Stimpy fans. Palisades Toys has announced the release of the anticipated line of Ren & Stimpy products, including articulated action figures, non-articulated pvc scenes and polystone mini busts. The first series of action figures will launch in the second quarter of 2004 and will include Ren, Stimpy, Mr. Horse and Shaven Yak. The second series will be released in the fourth quarter with the lineup yet to be determined.

Breakthrough Animation has awarded worldwide licensing representation for its animated series ATOMIC BETTY to Joy Tashjian Marketing Group LLC.

Breakthrough Animation Inc., the newly-established animation production, marketing and distribution division of leading Canadian producer Breakthrough Films & Television, recently signed Cartoon Network as the broadcast home for ATOMIC BETTY, in the U.S.

Ascent Media is launching a new set of services that allow advertising agencies to work with the world's best post-production talent-without leaving their hometown. UP Sessions enables Ascent Media clients to participate in telecine sessions, and other picture critical finishing work, from remote sites in realtime while interacting with the artists performing the work. UP Sessions encompasses three different products that facilitate virtual collaboration: UP Satellite, UP Fiber and UP Web.

On Feb. 24, 2004, the epic legal battle between the Walt Disney Co. and Winnie the Pooh copyright holders, the Slesinger family, heated up with Disney accusations that the family stole and altered documents, reported REUTERS. Disney lawyers again asked Los Angeles County Superior Court Judge Charles McCoy, who took over the case in October, to throw out the case, which could lose Disney hundreds of millions of dollars.

Peak Entertainment Holdings Inc. in the U.K. has finalized consulting agreement with POW! Entertainment, Llc., a company incorporated in the U.S. to capitalize on the highly acclaimed action hero creations from Marvel Comics legend Stan Lee.

Lee will offer his extensive live-action experience to the traditionally animated company and Peak will offer Stan Lee a platform via its flexible vertical properties for any future creation and development.

On Feb. 17, 2004, Walt Disney was in French courts defending itself against charges by author Franck Le Calvez that FINDING NEMO is an infringement on his creation PIERROT THE CLOWN FISH reported REUTERS. Le Calvez seeks to bar the release on any books and merchandising featuring the image of Nemo, which resembles Pierrot. Disney's lawyers claimed that Nemo's likeness cannot be considered a brand in and of itself. Judge Louis-Marie Raingeard de la Bletiere said he would rule on the case's merits on March 12, 2004.

MGM vice chairman/coo Chris McGurk admitted on Wednesday, Feb. 18, 2004 that he has discussed a distribution partnership with Pixar Animation Studios during a conference call with financial reporters to discuss MGM's record net income of $60.3 million for the fourth quarter- spurred by DVD and video sales of LEGALLY BLONDE 2 and JEEPERS CREEPERS II.

Following are breaking briefs filed by AWN’s correspondent, Karen Raugust, from the 2004 American International Toy Fair in New York City.