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Intellectual Property
Trade Dress Infringement
Unfair Competition

Mattel Inc. v. Realtoy International, Ltd.

Published: Oct. 5, 2004 | Result Date: Apr. 28, 2004 | Filing Date: Jan. 1, 1900 |

Case number: CV012266RJK Verdict –  $0

Judge

Robert J. Kelleher

Court

USDC Central


Attorneys

Plaintiff

Michael T. Zeller
(Quinn Emanuel)

Steven G. Madison
(Quinn, Emanuel, Urquhart & Sullivan LLP)


Defendant

Raymond Yoon Ho Kim

Robert L. Meylan


Experts

Plaintiff

Howard Marylander
(technical)

Defendant

Ivan Ross
(technical)

Facts

In 1998, Realtoy, a Hong Kong based toy company, introduced a broad line of 1.64 scale die cast toy cars and related playsets (such as parking garages and police stations). Realtoy's products were sold throughout the United States at major retailers such as Walmart, Toys R Us and KayBee Toys. In March 1998, Mattel sued Realtoy alleging that Realtoy's toys and packaging violated Mattel's trade dress rights because the packaging was confusingly similar to Mattel's Hot Wheels packaging. In December 1998, the parties entered into a stipulated final judgment, pursuant to which Realtoy agreed to change its dress packaging and pay Mattel $500,000. Realtoy provided its revised packaging to Mattel for review and approval. Mattel contended that it objected to, and did not approve the revised packaging. Realtoy began using the revised packaging in September 1999. In December 2000, Mattel brought a contempt proceeding against Realtoy and asserted that Realtoy's revised packaging was confusingly similar to Mattel's Hot Wheels packaging and thus in violation of the stipulated final judgment. Following an evidentiary hearing, Judge Kelleher denied Mattel's contempt motion. Mattel then filed a new lawsuit against Realtoy asserting that Realtoy's revised packaging was confusingly similar to Mattel's Hot Wheels trade dress. Mattel alleged claims for trade dress infringement; trade dress dilution; state trade dress dilution; false designation of origin and false description; unfair competition and common law passing-off and disparagement. Realtoy sold approximately 200 different products in the United States during the period 1999 through 2004. Mattel contended that all of Realtoy's packaging violated Mattel's rights.

Settlement Discussions

Prior to trial, Mattel demanded $4.6 million plus a worldwide injunction. Realtoy made no counter offer. During trial, Mattel increased its offer to $5 million, plus a worldwide injunction. Realtoy made no counter offer. During jury deliberations, Realtoy offered $100,000.

Result

A unanimous defense verdict in favor of Realtoy on all of Mattel's claims.

Other Information

The plaintiff brought motion for new trial and motion to alter or amend the judgment and for entry of a permanent injunction. Realtoy brought a motion for an award of attorney fees. All post-trial motions were denied.

Deliberation

three days

Length

nine days


#98180

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