I used to think Kermit's head was stuck through a lilly-pad that he, um, redecorated into a collar.
However, next to the sillouette of Mickey's mouse ears, that diamond/oval shape on top of the pointed collars is an amazingly recognizable logo. Whose idea was it to add the collar to Kermit? Jim's? Whoever added the collar to Kermit was probably more brilliant than they realized.