The iconic character is…
SONIC!
Reasons
1) If you look at the letters and the spacings on the clue you can superimpose SONIC THE HEDGEHOG on it!
2) You are looking for a 5 letter answer!
3) Sonic is an iconic character
4) Iconic in the title if split in two lead ic and onic both of which are letter strings in Sonic.
5) The letters are musical notes which also when played in a sequence make a nice melody which goes hand in hand with the name Sonic since the latter is also an adjective meaning ‘relating to the nature of sounds’ which makes it an apt adjective for it. They can be seen therefore as pointing to his name!!