Oswald the Lucky Rabbit, an earlier cartoon character created by the Disney studio for Charles Mintz, a film producer who distributed product through Universal Studios. In the spring of 1928, with the series going strong, Disney asked Mintz for an increase in the budget. But Mintz instead demanded that Walt take a 20 percent budget cut, and as leverage, he reminded Disney that Universal owned the character, and revealed that he had already signed most of Disney's current employees to his new contract. Angrily, Disney refused the deal and returned to produce the final Oswald cartoons he contractually owed Mintz.
In the spring of 1928, Disney asked Ub Iwerks to start drawing up new character ideas. Iwerks tried sketches of various animals, such as dogs and cats, but none of these appealed to Disney. A female cow and male horse were also rejected. They would later turn up as Clarabelle Cow and Horace Horsecollar. A male frog was also rejected. It would later show up in Iwerks' own Flip the Frog series. Walt Disney got the inspiration for Mickey Mouse from a tame mouse at his desk at Laugh-O-Gram Studio in Kansas City, Missouri. In 1925, Hugh Harman drew some sketches of mice around a photograph of Walt Disney. These inspired Ub Iwerks to create a new mouse character for Disney. "Mortimer Mouse" had been Disney's original name for the character before his wife, Lillian, convinced him to change it, and ultimately Mickey Mouse came to be.