The wisecracking Chihuahua who earned millions for Taco Bell Corp. has a new slogan: "Yo quiero mi dinero!" - I want my money!
A federal appeals court has ruled that Taco
Bell is liable for $42 million in breach-of-contract awards to two
Michigan men who created the diminutive mascot that starred in the Irvine, Calif., fast-food giant's $500-million advertising campaign in the 1990s.
TV commercials featured the dog decked out as a beret-sporting revolutionary or bandit in sombrero, stirring some controversy as a derogatory depiction of Mexicans. But the spots featuring the Chihuahua and voice-over artist Carlos Alazraqui were phenomenally successful. The talking dog's refrain, "Yo quiero Taco Bell," became a pop-culture punch line, as well as "Drop the chalupa!" and "Viva gorditas!"
The ads stopped running in 2000, freeing the dog, named Gidget, for further fame, with roles in "Legally Blonde 2: Red, White and Blonde" and
Geico insurance ads.
Dispute over the rights to market the sassy Chihuahua began in 1998, when Joseph Shields and Thomas Rinks of Grand Rapids, Mich., filed suit alleging breach of contract. The developers of a "psycho Chihuahua" cartoon had been in talks with Taco Bell advertising agents to adapt the character for TV spots when, the lawsuit claimed, Taco Bell took the idea to another ad agency, TBWA Chiat/Day Inc.
In June 2003, a federal jury in Michigan ordered Taco Bell to pay the creators $30 million, and a federal judge tacked on nearly $12 million more in interest three months later. The judgments prompted Taco Bell, a unit of Yum Brands Inc., to sue TBWA, arguing that the ad agency was liable for the disputed content.
On Friday, the San Francisco-based federal appeals court ruled that Taco Bell, not TBWA, was responsible for the ads and the awards owed to the Wrench agency owned by Shields and Rinks.
Asked if Taco Bell planned to appeal, company spokesman Rob Poetsch said, "We just received the opinion today and are reviewing our options."