Pooh's antics have been translated into more than 40 languages

The granddaughter of Winnie the Pooh author AA Milne is waiting to hear whether she will be barred from reclaiming the marketing rights to the lucrative honey-loving bear.

In a preliminary ruling last week, a judge said Clare Milne could not reclaim the rights her grandfather sold to a literary agent in 1930.

On Monday, Judge Florence-Marie Cooper was urged to reverse her initial decision by Walt Disney, who will sign a merchandising deal with Ms Milne if she wins.

The decision is part of a complex legal battle between Disney, Ms Milne and literary agent Stephen Slesinger Inc, which is suing Disney for unpaid merchandise royalties.

AA Milne sold the marketing rights to Slesinger in 1930, then again in 1961 and 1983.

Slesinger made the first merchandise deal with Disney to sell dolls, books and other items in 1961.

But it took legal action against Disney in 1991, saying the entertainment giant cheated it out of royalties.

It also says millions more dollars are owed for videos, DVDs, computer games and other electronic products not specifically covered under its deal.

Billion-dollar bill

It is now the longest-running lawsuit in Los Angeles Superior Court.

If Disney loses, it says the case will cost the company hundreds of millions of dollars, while Slesinger's heirs put the figure at at least $1bn (�620m).

Slesinger would also reportedly have its contract with Disney voided, and Slesigner could then sell the rights to another company.

Winnie the Pooh is one of Disney's most popular characters.

New deal

Ms Milne wants to use a change in the US copyright law in 1998 to reclaim the rights from Slesinger.

Judge Cooper issued a tentative ruling against Ms Milne last week, saying AA Milne's son, Christopher Robin Milne, chose not to revoke the copyright in 1983 when he had the chance.

But on Monday, she said she would consider the case further because the complexity of the case was highlighted by legal arguments.

"Some things are very clear to me," Disney attorney Daniel Petrocelli said.

"I wish I could say the same," Judge Cooper replied.