In 2004, Disney and Pixar signed an agreement that all characters created by Pixar for their films are owned by Disney. Furthermore, Disney retains the rights to make sequels to any Pixar film, though Pixar retains the right of first refusal to work on these sequels. Disney took advantage of this and started production on an entirely different Toy Story 3 with a new division of animation called "Circle 7 Animation" without any involvement with Pixar. The division wrote a script that focused on the Buzz Lightyear toy being recalled because of a malfunction. The company that manufactured him say that they will ship the toys back to Taiwan where they will be fixed. Consequenty, Buzz is shipped off to Taiwan. The other toys then find out that they are completely replacing and disposing the other Buzz Lightyears and sending back brand new ones as opposed to fixing the old ones. The toys then ship themselves to Taiwan to save him. Meanwhile, Buzz meets toys who were once loved but now thrown out. This script was written by Jim Herzfeld for Circle 7. The script was completed and production was ready and Tim Allen indicated a willingness to participate even if Pixar was not involved. However, shortly afterwards in January 2006, Disney bought Pixar in a deal that put Pixar chiefs Edwin Catmull and John Lasseter in charge of all Disney Animation. Shortly thereafter, Circle 7 Animation was completely shut down and its version of Toy Story 3 was shelved. The character designs went into the Disney archives. Some animators from Circle 7 were transferred to Pixar where the version of Toy Story 3 we see today began. However, Disney still has the right to use Pixar characters without Pixar's involvement. Edit