In 1929, animator John Foster redesigned Milton and Rita to look more like Mickey and Minnie Mouse, who had become very popular following the 1928 release of the Walt Disney cartoon Steamboat Willie.
Later, Milton played the hero, rescuing Rita from villainous cats and other threatening animals, in films including Sink or Swim (Jan 1927), The Big Tent (Sept 1927), Saved By a Keyhole (Nov 1927), Our Little Nell (July 1928), A Lad and His Lamp (March 1929) and The Enchanted Flute (July 1929).
[7] Terry directed most of the Fables Pictures films until 1929, when he was fired by Van Beuren over disputes related to disagreements about sound synchronization and financial profits.
The boss allowed Foster to change the character designs of Milton and Rita, to make them look more like the increasingly popular Mickey and Minnie Mouse.
According to Hal Erickson, author of a book on the Van Beuren studio: "Beginning with A Close Call in December 1929, Milton and his sweetie took on a rounder, cuter look, especially in the vicinity of the nose and ears.
When the two mice make their first appearance in A Close Call skipping through a field of musical flowers, one is startled by their strong resemblance to Mickey and Minnie Mouse.
Further cartoons included Singing Saps (February 1930), Western Whoopee (April 1930), Hot Tamale (August 1930), Circus Capers (September 1930), and Stone Age Stunts (December 1930).
When the president's battle-axe wife approaches, Milton is happy to usher her into the office to catch her husband in a compromising position.
On January 28, 1931, Walt Disney saw The Office Boy at the Orpheum Theater in Los Angeles, and took umbrage at the flagrant use of his characters.
"[9] A United Press wire service story noted that Mickey and Minnie had been copyrighted in 1928 by Disney, and alleged that Van Beuren had made one million dollars from their use of the ersatz mouse.
Disney's lawyers held that the Van Beuren mice were redesigned to look exactly like Mickey and Minnie after the pair had become famous.