It was, in essence, hypocritical of Disney to build their empire by adapting many public domain fairy tales, then turn around and push for longer and more restrictive terms It comes across as greed and a desire to milk their cash cows as long as they are able to
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They gladly used the public domain to their benefit, but then refused to honor the social agreement underlying the very concept of copyright in refusing to contribute back to the public domain and keep their original works from entering
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hell, people wouldn't even watch disney's live action Pinocchio.
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In theory New Line could have both made a good Pinocchio movie and marketed it well enough for a lot of people to watch it; but the movie they actually made had very bad pacing and not many people enjoyed it.
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People want to build on the Disney versions of these characters the way Disney built on them, for its own sake. These efforts might not be commercially successful, but they would be more interesting than the artless live-action remakes Disney has been cynically crapping out.
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Also many of these extended copyrights just serve to print money for the big companies and reinforces their market dominance. Pretty much everyone involved in the making of the Wizard of Oz is dead, but WB has the rights to the movie--and the Ruby Red Slippers--until 2035.
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