Inside Licensing News and Notes, September 29, 2017
Spin Master Settles Hatchimals Infringement Suit
Spin Master Corp. settles the suit it filed against Maxima Wearable Tech, barring Maxima from selling its Hatchimals-like Fuzzy Wonderz product, Spin Master said. Spin Master sued the New York-based company in U.S. District Court, New York, in July alleging Fuzzy Wonderz, launched as Hatchimals gained in popularity last fall, infringed on Hatchimals-related patents and violated trademarks. Details of the settlement weren’t released. But an order signed by U.S. District Judge Jed Rakoff bars Maxima from selling any products that infringe Hatchimals patents or making misleading descriptions that could cause confusion among consumers.
Spin Master, Adam Beder, VP Licensing, 416-364-6002 x2256, firstname.lastname@example.org
Quirky Re-Launches Website
Invention startup Quirky relaunched its website this week with a focus on licensing as seeks to build back a business linking inventors with manufacturers. The New York-based company has signed three licensees/suppliers – Atomi (cord and cable management), Viatek (power strips and surge protection) and Vanderbilt Home – that make Quirky branded products developed by the company’s affiliated inventors and “community” members that contribute to a given design. Other items will be sold under the “Powered By Quirky” banner with licensees handling the manufacturing. In the case where products are sold through retailers, Quirky receives a royalty in line with industry averages based on the category and whether the Quirky or Powered by Quirky brand is used. Out of that royalty, 1.5% goes to the inventor. When products are sold through the Quirky website, inventors get a 3% royalty from Quirky. “The payments are all aligned with who is taking the greatest risk,” says Quirky’s Gina Waldhorn. The majority of products are being sold under the Quirky brand, says Waldhorn. But Hover 1 is introducing the first “Powered by Quirky” product – a skateboard that can be set to cruise control after the initial push off – this fall, Waldhorn said. Quirky also has enlisted Shopify to work with inventors on direct sales. The new products are mong the first first to emerge since Waldhorn was named CEO in March, inheriting a company that tumbled into bankruptcy in fall 2015 after burning through $185 million in funding. With fresh financing from new owner Q Holdings, which purchased the company out of bankruptcy in late 2015 for $4.7 million, Quirky dropped the manufacturing services that most say was responsible in large part for its downfall.
Quirky, Gina Waldhorn, CEO, 850-212-8728, email@example.com