ALTERNATE UNIVERSE: WHAT IF MLJ WENT AFTER TIMELY LIKE DC DID AGAINST FAWCETT

Captain America was not the first superhero comic book character to be the subject of a copyright infringement lawsuit. In 1939, National Comics (then known as Detective Comics, Inc. It did not use the name National until 1946) had filed suit against Fawcett for their Superman-like hero Captain Marvel.

Timely received a cease-and-desist letter from MJL to remove or change the shield that Captain America was using in the first issue since it looked like the costume the Shield wore. Rather than fighting a law suit Timely changed the shield to a disc in the second issue.

However, after receiving another cease-and-desist letter from MLJ Comics in June 1941, Timely decided to fight MLJ's allegations that Captain America, the star character of their line of Comics, was an illegal copy of The Shield. Captain America had proven to be very successful
for the company, and had, within two years of his existence, become its flagship comic book character.

Initial hearing

MLJ filed suit against Timely in September of 1942, one year after National filed against Fawcett. The lawsuit between MLJ and Timely proceeded for seven years before trial finally began in 1949. MLJ's argument was that Captain America's main powers and characteristics (super-strength, a skin-tight costume related to the stars and stripes, and working for the government) were derived directly from those of The Shield. Timely's counterargument was that although the two characters were indeed similar, and The Shields's publication debut predated Captain America's by fourteen months, the differences in essential plot and concept elements (Captain America's started as a frail young man not a person carrying on his fathers experiments; his powers were not as great as The Shield and that Captain America actually used a shield as part of his superhero role)
meant that Captain America was not an infringement of MLJ's copyrighted character, but a property in its own right.

The trial was decided in Timely's favor because of Timely's argument.

Appeal

MLJ appealed the decision in 1951 to the United States Court of Appeals for the Second Circuit, with famed Judge Mark Warner presiding. Mark Warner's 1952 ruling in MLJ's favor reversed the trial court's decision. MLJ's The Shields copyright was held valid, and the finding that Captain America was an infringement of that copyright was affirmed. The case was then remanded to the trial court for damage assessment. Instead of appealing the Second Circuit's decision, Timely decided to settle with MLJ out of court. Superhero comics sales had decreased dramatically during the early 1950s, and Timely decided that it was not worthwhile to continue fighting MLJ. MLJ agreed to settle with Timely out of court, and Timely paid MLJ $500,000 in damages and agreed to cease publication of all Captain America-related comics.

Results of the lawsuit

Timely Comics ended up cancelling all of its superhero comics, selling the reprint rights for most to Charlton Comics, who re-lettered the artwork to identify the strip as their own. The entire creative staff of the comic book division was laid off, a young editor Stan Lee said he wasn't sure what he would do next, maybe write movie scripts or something. So the comics division was shut down.

A few years later MLJ got out of the superhero business and highlighted their main character the teenager Archie and his group of friends. The name changed from MLJ Comics to Archie Comics and every now and then they would spotlight their superheroes

Captain America remained out of print until DC Comics (National Comics) bought Charlton Comics. They revised the patriotic hero with great success teaming him up with others such as the Blue Beetle, The Torch, E-Man to form a new superhero group called the Avengers. Captain America became a favorite of fans and soon had his own monthly title.

Foot Note: Stan Lee became a famous Movie writer winning two Oscars. Steve Ditko went to work for Archie with a promise he could redo The Fly which became a big hit ushering in a new group of superheroes from Archie Comics under the name of Mighty Comics. Such characters as The Fly, The Fantastic Five, Iron Woman, The Mutant Men. DC now had a rival.
And Archie once again was thinking of a law suit since they still held the Copyright to The Shield.

thats a bit mind bending