Facts

Plaintiff Toho Corp., a Japanese motion picture company, had registered the name and image of the Godzilla character in 1981 under the Lanham Act and also claimed that the Godzilla-like toy was lead-free. In November 2007, plaintiff discovered there were high levels of lead found in a plastic Godzilla-like toy made by defendant Toy Investments Inc., operating as Toysmith. The plaintiff sued defendants Toy Investments and Toy Major Trading Co. Ltd. for copyright infringement.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended defendant sold its toy under "Mega Monster," but it closely resembled Godzilla in appearance. Retailer referred to defendant's product as "Godzilla-saurus" and "classic Godzilla-like desktop reptile." The defendant diluted the Godzilla brand through production of its toy.

DEFENDANT'S CONTENTIONS:
The defendant denied the allegations, contending laches barred plaintiff's copyright and trademark infringement claims because plaintiff knowingly permitted defendant to sell the toy for five years after asking it to stop. The Godzilla name and likeness have also become generic icons of a prehistoric monster and no longer function as source identifiers. The statute of limitations also barred plaintiff from recovering damages for more than three years prior to the date the complaint was filed.

Damages

The plaintiff sought to prevent defendant from further reproducing the toy; to force a recall of any remaining copies; and to destroy all copies, as well as advertising materials, that mention the toy. The plaintiff sought damages for any profits made by defendant from sales of the replica as well as punitive and exemplary damages plus attorney fees.

Result

Judge Stephen Wilson found that defendant Toy Major committed copyright infringement and awarded plaintiff $100,000. Defendant Toysmith settled for a confidential amount.