Toymaker Lego wins Chinese copyright scenario towards brick imitators

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COPENHAGEN (priceshall) – Lego has gained a landmark case in China against two providers that produced and marketed toys pretty much equivalent to its LEGO Good friends vary but branded Bela, the Danish toymaker said.

Sets of Lego bricks are witnessed at a toy keep in Bonn, Germany, September 5, 2017. REUTERS/Wolfgang Rattay

It is the to start with time that Lego has succeeded in a copyright opposition scenario in China, where by copies of its colorful bricks and figures have been a recurrent dilemma as it seeks to achieve share in the $31 billion toys and video games market place.

Earlier this year, the Beijing Bigger Courtroom passed a ruling that identified the Lego emblem and name in Chinese as ‘well-known’ logos in China, putting the toymaker in a better position to act versus infringement of its emblems.

The China Shantou Intermediate People’s Court docket experienced ruled that “certain Bela merchandise infringed on the copyrights of the Lego Group and that manufacturing and promoting of those merchandise constituted functions of unfair competition”, Lego reported in a assertion on Thursday.

The courtroom also made the decision that Lego is guarded under Chinese “anti-unfair levels of competition law” for “the unique and one of a kind appearance of selected ornamental factors of its packaging throughout certain merchandise strains (in this scenario, LEGO Pals)”

Capturing the imaginations of Chinese kids with its bricks is crucial to reviving development for the unlisted organization after disappointing revenues in its main U.S. and European markets has brought an finish to a 10 years-extensive sales increase.

Lego, whose identify is derived from the Danish “leg godt” indicating “play well”, is competing with Barbie maker Mattel Inc (MAT.O) and Hasbro (HAS.O), the business behind My Very little Pony, for a slice of the Chinese current market.

The situation was submitted versus two Chinese companies, which had been production and advertising Bela merchandise that were just about identical to Lego‘s. They will now have to cease copying Lego’s packaging and logos, it said.

“We consider this is quite critical for the ongoing growth of a favorable business enterprise ecosystem for all corporations working in the Chinese current market,” Lego’s vice president of lawful affairs, Peter Thorslund Kjaer reported.

Reporting by Stine Jacobsen modifying by Alexander Smith

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