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I agree with you.

At this point he sees it as a court battle he can’t afford to get paid as contracted. If others used his character interpretations and dialog and script in their own works, the burden to sue many fly by night public domain claim jumps to protect Trademark would fall to Warner Discovery.
And the base characters are public domain to start with. 

Someone who worked on Milne estate Vs Disney might have some interesting opinions. The contracts would have to be aired.