While the X-Men are constantly fighting against prejudice on the comics page, Marvel Comics once denied all mutants their humanity in order to save money on taxes. Unlike other super-powered characters in Marvel's pantheon, mutants fight a seemingly never-ending battle for acceptance in society, and are continuously dealing with those who harbor prejudice toward them because they are born "different." This civil rights battle is what makes villains like Magneto sympathetic in ways other villains can never be. Mutants have been embraced by countless BIPOC and LGBTQ+ individuals precisely because of the allegorical and unfortunately relatable prejudice mutants face in the comics, which is why a 2003 court ruling, backed by Marvel, was the ultimate betrayal.
The X-Men debuted in 1963's X-Men #1 by writer/artist Jack Kirby and writer Stan Lee and featured a team of young misfit mutants led by Charles Xavier. While developing a small fan base, the X-Men wouldn't gain true popularity until 1975's rebooted Giant-Size X-Men #1. This new version of X-Men featured a brand new team made up of members from all around the world, and immediately captured the imaginations of legions of fans due in part to the new and richly diverse cast of characters. As this new X-Men team gained popularity, so did the merchandise.
At one point in time, the U.S. Government taxed "dolls" differently from "toys." The distinction was that "dolls" are based on humans, and "toys" are based on non-humans, which in the past included robots, animals and monsters. The tax for "dolls" was 12% whereas the tax for "toys" was only 6.8%. In 1996, Toy Biz (which was partially owned by Marvel at the time) decided to sue U.S. Customs in the Court of International Trade, which arbitrates foreign-trade disputes between U.S.-based companies and the U.S. Government. Not only were there future taxes to be saved, but if the suit was successful Toy Biz would be entitled to reimbursement on all toys it "overpaid" taxes on. Considering the number of X-Men toys produced over the years, this was a potentially huge financial windfall. As publishers of X-Men comics, Marvel testified on behalf of Toy Biz against mutants.
After almost a decade, and after lengthy examinations of various action figures, Judge Judith M. Barzilay finally came to a decision as outlined in a 32-page verdict. In arguments that could be ripped directly from comic book anti-mutant propaganda, the judge ruled, "'X-Men' (or 'X-Force') figures manifest human characteristics at varying degrees...Whatever the degree is to which they resemble human beings, the court finds that these action figures do not represent human beings." The judge went on to decree, "The category 'mutants' is like the categories of 'robots' or 'monsters.' The categories of 'robots,' 'monsters,' and 'mutants' are all, even if humanoid, extra-human (or non-human) categories of being...Thus, a 'mutant' is someone (possibly originally belonging to human species) who has undergone change and become something other than human."
The judge didn't stop there. For the purposes of toy classification, Barzilay essentially ruled that any super-powered being is no longer human including other Marvel characters like the Fantastic Four and even non-powered characters such as Kraven the Hunter and Doctor Octopus. Kingpin was declared a non-human entirely because of his exaggerated weight. "Even though “dolls” can be caricatures of human beings, the court is of the opinion that the freakishness of the figure’s appearance coupled with the fabled 'Spider-Man' storyline to which it belongs does not warrant a finding that the figure represents a human being."
In an unfortunate twist, the tariffs that inspired the lawsuit have since been amended. "Dolls" and "toys" are now both subject to the same taxation regardless of human or non-human depiction, which means the financial incentive Marvel had to betray its mutant characters is no longer a factor. The ruling, however, remains. Mutants are not considered human under U.S. law, and while Professor X would encourage the X-Men to forgive Marvel and turn the other cheek, Magneto would have a field day.
Source: Court of International Trade
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