In its early years, the company created Stan Lee branded super hero franchises for applications in all media including the standout series the 7th Portal.

The company launched the first new team of superheroes to be created by Stan Lee in thirty years, The 7th Portal, at a $1 million gala hosted by Dick Clark at Raleigh Studios on February 29, 2000.

The first high concept 'webisode' to be broadcast on the internet, The 7th Portal's worldwide debut crashed the servers of Macromedia's Shockwave web site with millions of viewers.

[citation needed] The President of Sony Digital studios was hired away to become the CEO of Stan Lee Media in June 2000, and a joint venture with the largest anime manga company in Japan resulted in production and distribution deals over the internet, on television and in theme parks in Europe, South America and Asia.

[3] With SLM stock price falling below the sale agreement level, a legal battle ensued between with the previous owners, Baums, LSDC, Arthur Lieberman and the de Camps.

[5] Near the end of 2000, investigators began a review of stock transactions by co-founder Peter Paul and corporate officer Stephan Gordon.

[6] Paul fled to São Paulo, Brazil to avoid prosecution,[7][8] and the company filed for Chapter 11 bankruptcy protection on February 11, 2001.

During the Chapter 11 debtor in possession proceedings, Stan Lee assigned the major character franchises he created to his new public company, POW!

[citation needed] On June 9, 2007, Peter Paul and his associates filed suit against POW Entertainment, Stan Lee, and other former executives of Stan Lee Media, accusing them of improperly transferring assets from SLM's bankruptcy to start POW Entertainment in November 2001 without the knowledge of the Bankruptcy Court or creditors of SLM.

[citation needed] On January 27, Judge Stephen Wilson ruled that Lee and POW Entertainment had illegally transferred the rights to the characters The Drifter, The Accuser and Stan's Evil Clone from SLM, without the knowledge or consent of the Bankruptcy Court.

[citation needed] On March 31, 2010, Judge Paul Crotty dismissed the New York lawsuit against Marvel, Stan Lee, and others, citing lack of standing, expiration of statute of limitations, and other causes.

[citation needed] In 2011, investor Michael Wolk organized a group to finance SLMI's legal actions against Walt Disney.

This was granted, and they filed a new, consolidated complaint in February 2011[24] They sought a jury trial over the question of whether or not they actually own the characters that Lee created.

[32][33] In motions to dismiss the lawsuit, Disney called the suit "frivolous" and "a wholly improper attempt to revive a claim already rejected three times.

In September 2013, Judge William Martinez dismissed SLMI's Colorado suit as a retread of previous failed efforts, writing "Plaintiff has tried time and again to claim ownership of those copyrights; the litigation history arising out of the 1998 Agreement stretches over more than a decade and at least six courts .

"[39] In October 2014, SLMI suffered two legal defeats, as a suit they had brought in the 9th circuit against Stan Lee himself was discarded as "simply implausible," and their attempt to intervene in the Disney/American Musical Theater suit was barred by U.S. District Judge Jeffrey Schmehl, who wrote "These issues have previously been addressed in one form or another by multiple courts around the country.

[47] The 7th Portal became the first ever web animation series to succeed as a 3D ride attraction and to be developed for a $150 million movie by Paramount with producer Mark Canton.

[48] It became the most successful web originated animated series, being picked up by Fox in mid run, for distribution on TV in South America and Europe.