See Bug Testing
http://www.imagemagick.org/Usage/bugs/testing/
This is your main problem, BUT you also have quite a few other operational faults as you have not read the 'Basics' in IM Examples...
You should read your images BEFORE modifing them, and set options for operators BEFORE using those operators eg -fuzz and -trim shoudl be swapped, and image read before them!
Also you can NOT add transparency to a image (JPG) unless you add a matte channel!
the only exception that is guranteed for this is -compose CopyOpacity
Okay lets for the fixed up your preparations...
Code: Select all
convert http://www.pepsico.com/includes/images/Btn_PepsicoLogo.gif \
-fuzz 5% -trim -write 1.jpg +matte -negate -threshold 8000 1.gif
convert 1.jpg +matte -fill none -draw 'matte 0,0 reset' 1.png
Code: Select all
composite 1.jpg 1.png 1.gif 2.gif
However just applying the mask directly to the image does work fine.
Code: Select all
convert 1.jpg 1.gif +matte -compose copyopacity -composite 3.gif
http://www.imagemagick.org/Usage/channels/#erase