but what if suare wants a diffrent character, then your screwed
Well, two things:
1) This game's theme is Nintendo's history. Many Square Enix characters are as qualified if not less qualified than Geno. Keep in mind that Geno has only appeared in Nintendo games which, more importantly, are Mario games. A Mario game will always have more "power" than a pure third party game.
2) Geno's legal status and Nintendo's right to use "Geno" in a game is bizzare and is basically "unknown" to the general public. Ok, so Geno's copyright belongs to Square Enix, thats nice, but what about the contract that Square Enix signed stating that they do not have the authority to redistribute and market Super Mario RPG without Nintendo's permission? I mean, Square Enix is kind of in a checkmate here and no matter how you think about it, they're basically powerless when it comes to this game. Geno was never "unpopular", back in 1996 he was extremely popular. Even in a Nintendo Power magazine, someone stated that they wouldn't be surprised if Geno had his own series by the 200th issue (I'm assuming that idea was printed in the 100th issue). So why didn't Square independently market Geno? My theory is the "Welcome to retirement!" thing Square had going on at the time. That, or Nintendo had more say in what happens to Geno than Square does.
I think the "copyright" situation is more along the lines of "Nintendo, you MUST CREDIT US for OUR WORK. You DID NOT create Geno".