In
1993, Gaiman was contracted by
Todd McFarlane to write a single issue of
Spawn, a popular title at the newly created
Image Comics company. McFarlane was promoting his new title by having guest authors Gaiman,
Alan Moore,
Frank Miller, and
Dave Sim each write a single issue.
In issue #9 of the series, Gaiman introduced the characters
Angela,
Cogliostro, and
Medieval Spawn. Prior to this issue,
Spawn was an assassin who worked for the government and came back as a reluctant agent of Hell but had no direction. In Angela, a cruel and malicious angel, Gaiman introduced a character that threatened Spawn's existence, as well as providing a moral opposite. Cogliostro was introduced as a mentor character for exposition and instruction, providing guidance. Medieval Spawn introduced a history and precedent that not all Spawns were self-serving or evil, giving additional character development to
Malebolgia, the demon that creates Hellspawn.
All three characters were used repeatedly through the next decade by Todd McFarlane. Gaiman claimed that the characters were owned by their creator, not by the creator of the series. As McFarlane used the characters without Gaiman's permission or royalty payments, Gaiman believed his copyrighted work was being infringed upon, which violated their original agreement. McFarlane initially agreed that Gaiman had not signed away any rights to the characters but later claimed that Gaiman's work had been work-for-hire and that McFarlane owned all of Gaiman's creations entirely. McFarlane had also refused to pay Gaiman for the volumes of Gaiman's work he republished and kept in print.
In
2002, Neil Gaiman filed a lawsuit against
Todd McFarlane and
Image Comics and won a sizable judgment. The characters are now owned 50/50 by both men.
This legal battle was in part funded by Marvels and Miracles,
LLC, which Gaiman created in order to help sort out the legal copyrights surrounding
Miracleman (see
the ownership of Miracleman sub-section of the Miracleman article). Gaiman wrote
Marvel 1602 in 2003 to help fund this project. All of Marvel Comics' profits for the original issues of the series go to Marvels and Miracles.
Gaiman is strongly committed with the
Comic Book Legal Defense Fund.