Schwarzenegger is justifiably possessive of his image. As his lawyer, Martin D Singer said in a letter to Todd and Toby Bosley, owners of Ohio Discount Merchandise, "The market value of Mr Schwarzenegger's name, photograph and likeness for commercial purposes is worth millions of dollars".
Ohio Discount was warned to stop selling the doll and to make a "substantial payment" in compensation to Mr Schwarzenegger's production company, which owns the publicity rights in his image. Ohio Discount countered that the image represented political commentary and that its use was therefore lawful.
However, a settlement, revealed this week by The Smoking Gun, allows Ohio Discount to continue selling the doll – subject to redesign. It appears that Arnold is content with a bobblehead doll, but not with the gun. So the gun will be dropped from the new version, and part of the sale proceeds will be given to his "Arnold All Stars" charity.
The case represents the latest in a string over image rights that have hit the headlines.
In December, Mattel, guardian of Barbie, lost its legal battle with an artist who published a series of photographs showing the popular plastic doll in compromising positions, when an appeals court deemed the works a parody or satire that could not be blocked by trade mark laws.
A similar argument is being put forward in defence of animators at JibJab, a site that was threatened by the copyright owner of the song "This Is Your Land", made famous by folk singer Woody Guthrie. The tune is used (with amended words) in JibJab's satirical cartoon of President Bush and Senator John Kerry. JibJab's lawyers pre-empted a lawsuit by filing suit for a court declaration that they are making fair use of the tune, as permitted by copyright law.