Spin Master sues Mattel for patent infringement on patents relating to award-winning Bakugan® toy

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Apr 25, 2018, 08:00 ET

TORONTO, April 25, 2018 /PRNewswire/ - Spin Master Corp. (TSX:TOY; www.spinmaster.com), a leading global children's entertainment company, sued Mattel, Inc. in the Central District of California in connection with Mattel's sale and marketing of its Mecard branded toys. Specifically, Spin Master claims Mattel's Mecard toys infringe on at least two of Spin Master's patents. Spin Master is seeking damages and a permanent injunction.

Spin Master has patent rights in major markets throughout the world to protect the transformation mechanism associated with its award winning and successful Bakugan® toys. In proceedings recently filed by Spin Master, it alleged that Mattel's Mecard toys infringe at least two of Spin Master's US patents which cover the transformation mechanism. Spin Master alleges Mattel has used its patented technology in its Mecard toys to create dynamic toy transformations.

Based on public information, in 2016 Mattel through a foreign corporation, bought an interest in SonoKong Co Ltd who licenses the allegedly infringing Mecard toys to Mattel. Sonokong was a former Korean distributor of the Bakugan® toys. Spin Master has already obtained a favourable judgment of patent infringement against a US reseller of certain prior Turning Mecard products in US Federal Court. The US lawsuit follows three other patent suits involving the Bakugan technology and Mecard toys filed in 2017 against Mattel in Canada, Mexico and Australia. These cases are ongoing.

Spin Master's lawsuits against Mattel follow three other patent lawsuits filed by Spin Master involving the Bakugan® technology. Filed in the US, Canada, and the United Kingdom, these lawsuits allege that the Chinese-affiliated Alpha Group has infringed Spin Master's patents by making and selling its Screechers Wild!™ line of transforming toys.

"Spin Master has been recognized over the years by organizations such as the Toy Industry Association, as one of the industry's most innovative companies. We go to great lengths to protect and enforce our intellectual property against others who try to unfairly capitalize on our innovation. It is unfortunate when our competitors do not respect our intellectual property rights or do not invest in their own innovation," stated Ben Gadbois, Spin Master's Global President and Chief Operating Officer. Added Ronnen Harary, Spin Master's Co-Chief Executive Officer and Co-Founder, "Bakugan was a global toy phenomenon and we have taken, and continue to take, great care to protect our innovative transforming technology in most major territories around the world. We plan to relaunch the Bakugan property globally in 2019 and we believe our patents protect the technology behind the product. Spin Master expects its competitors to respect Spin Master's intellectual property and we will take forceful steps if we believe our rights are being infringed."

About Spin Master
Spin Master (TSX:TOY; www.spinmaster.com) is a leading global children's entertainment company that creates, designs, manufactures, licenses and markets a diversified portfolio of innovative toys, games, products and entertainment properties. Spin Master is best known for award-winning brands including Zoomer®, Bakugan®, Erector® by Meccano®, Hatchimals®, Air Hogs® and PAW Patrol®. Since 2000, Spin Master has received 92 TIA Toy of The Year (TOTY) nominations with 28 wins across a variety of product categories, including 13 TOTY nominations for Innovative Toy of the Year, more than any of its competitors. To date, Spin Master has produced six television series, including 2007 success Bakugan Battle Brawlers and current hit PAW Patrol, which is broadcast in over 160 countries and territories globally. Spin Master employs over 1,600 people globally with offices in Canada, United States, Mexico, France, Italy, United Kingdom, Slovakia, Poland, Germany, Sweden, the Netherlands, China, Hong Kong, Japan, Vietnam and Australia.