Fatman said it himself. Read the Red, that means he's third party. If they did it for Sonic, they'd do the same for Geno, which is a major contradiction.
How so? Where did I in that entire explanation that Geno isn't a third party character? You should also note the side note I say after that comparing the "rental" costs for someone like Geno and someone like Sonic. Sonic's overall worth runs circles around Geno and thus Sonic would easily cost more. I also explain in the one of the paragraphs that Square Enix really can't legally refuse the rights to Geno to Nintendo if they asked because of what I forementioned in the first paragraph and even if they could, Nintendo and Square Enix have a decent enough of a relationship (and things have been especially better in the past 2 years or so) so the chances of it happening would be extremelly slim. Now, let's compare this to someone like Megaman. If Nintendo asked Capcom to "rent" the rights to him for Brawl, Capcom doesn't have to do jack because they are in full and complete control of the situation. Nintendo doesn't have any leg ups in the situation and thus, if they wanted to, Capcom could just give Nintendo the bird and that would be the end of it. When you put all of this together, Geno is still third party, but as I said at both the beginning and end of my explanation, he's still worlds different from people like Megaman and Sonic.
IE I don't have a movie that I want to watch(Movies I own are 1st and 2nd partiers) so I go to Blockbusters. I rent a Movie that I do not own (The Third Party character)rights to, and there you go.
That's basically how the situation works here too but I'm not exactly sure what point you're trying to make. I'd also like to note that like renting videos, the third party characters that are in Brawl weren't "bought" at full price and Nintendo has to let go of them once the game has finished production. If Nintendo wants to use them again after that, then they have to go back to Blockbuster and do it all over again.
Seems to me that somebody doesn't know that Nintendo doesn't make Brawl. They publish it. WHy would they buy two character for one game the **** corporation doesn't make?