The copyright dispute between Firesign Theatre and Rocky Rococo primarily stemmed from issues related to intellectual property and the use of character names and material. Firesign Theatre, a comedy troupe known for their innovative and surreal audio recordings, had created the character Rocky Rococo as part of their sketches and performances.

The dispute likely arose when there was an unauthorized use or adaptation of the character or related content, which Firesign Theatre claimed infringed upon their copyrights. Such disputes commonly involve disagreements over who holds the rights to certain creative elements, how they are used, and whether proper permissions or licenses were obtained. The resolution would typically involve legal negotiations to determine ownership rights and any potential compensation or licensing agreements.