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If I recall correctly, they couldn't find/reproduce his contract. So they coudn't prove the work for hire which would've made it archies/segas property. I only know this because I loved Archies Mega man and I looked into what happened to the series. I am only familiar with archies Sonic because of the comic covers in sonic mega collection. The UK/Ireland had our own sonic comic and it had some great moments but also some weird ones. We did not have access to archie sonic unless you were living near a dedicated comics shop. Archie needing to license out everything afterwards really tells how much Sonic was keeping them afloat, as their own comics could not recuperate costs lost from the lawsuit.Wow I forgot about that funny situation but that's how law works.
Simply put, artists are protected in a very okay way. So despite it's a fan fiction about a universe a company owns like for example Persona video game series, the artist has legal ownership over the original characters, situations and events they wrote therefore fan fiction cannot be owned by the company and cannot be used without the permission of the artist. What matters for the artist to be able to prove they indeed wrote the fan fiction. Date of creation matters a lot. In the end if no one can prove who wrote the fan fiction and if multiple people claims ownership so if no one can prove a date of creation then things get funny because fan fiction itself become a "protected artwork" so no one can use anything about that fan fiction until it hits its copyright expiration date which varies depending on the country's law.
So why he "won"?: While he was working for the company, company had legal right to sell his artwork because it was considered as "the artist gave permission" for it but it turned out after he was not working for the company, company had no legal right to use his artwork to make money because the company couldn't prove his work done in the context of "work for hire" status by legally establishing such an agreement in a proper way that's acceptable by law. It seemed like he was "commissioned", therefore naturally the artist owns their creation. However the artist can transfer copyright by properly establishing a legal agreement by making the agreement proper for law to the person who wants it, which in his case to the company paid money to the artist for his creation but Ken Penders didn't transfer the copyright. Naturally unless he gives permission or his copyright expires no one is legally allowed to use his creations lolol.
I am still gutted over the archie megaman series not being fully printed in graphic novel form at least.

