Subject:
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Toy companies: Original vs Copycats
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Newsgroups:
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lugnet.mediawatch
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Date:
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Thu, 21 Feb 2002 07:18:22 GMT
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Viewed:
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841 times
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-from the business wired-
(there is a small sound bite about LEGO)
Toy companies with original ideas try to keep ahead of copycats.
By ANNE D'INNOCENZIO
.c The Associated Press
NEW YORK (AP) - When Manley Toy Quest came out in May 2000 with a $39 silver
robotic dog called Tekno, the company expected a sure hit. And it was -
until a slew of knockoffs retailing for half the price started nipping at
Tekno's heels just two months later.
``We definitely got hurt,'' said Brian Dubinsky, the company's president,
noting that Tekno's sales dropped 25 percent when retailers started selling
less expensive copies. That experience has forced Dubinsky to be more
aggressive about getting new versions of his products into stores.
``If there is anyone who is going to copy us, it will be us,'' said Dubinsky.
It's getting harder to have an exclusive in Toyland, and that's why Manley
Toy Quest and other manufacturers are doing whatever they can to protect
themselves.
The toy industry is seeing a proliferation of knockoffs reaching stores
faster as better technology allows toy companies to copy rivals' designs
more quickly. The trend was very evident at this year's International Toy
Fair, which offered numerous versions of brand-new toy trends - bubbles that
take longer to burst, spinning tops and a new generation of radio-controlled
vehicles.
``People are running out of ideas. The toy industry is stuck,'' said Ronnie
Goldfinger, chief executive officer at Distributoys Inc., a Highland,
Ill.-based supplier to toy manufacturers.
The trend is forcing toymakers to be aggressive in marketing.
Hasbro Inc., which has an agreement to sell tops called Beyblades in the
United States, is hoping a national TV campaign and demonstrations at skate
parks nationwide will give it an edge over rivals like Jakks-Pacific,
Playmates, and Bandai, which are coming out with their own versions.
``We are clearly out to establish the Beyblade difference,'' said Brian
Goldner, president of Hasbro's U.S. toy division. ``We no longer can afford
to build a hot brand over time.''
Razor USA, whose scooters and Airpogo sticks have been copied by other
manufacturers, decided to keep its latest product under wraps at Toy Fair,
showing it only to a select group of retailers. It hasn't shown the product
to the press, and asked its package design suppliers to sign a
confidentiality agreement, according to Katherine Mahoney, vice president of
marketing.
``For young consumers, the whole authenticity in their minds is whether you
are perceived as being first - whether you have a patent or not,'' she said.
The copycat toys have spawned a series of patent and trademark infringement
suits.
Last year, Razor won a temporary restraining order against several
manufacturers of scooters, barring them from selling models that allegedly
infringed on its patent. And toy industry observers are watching whether
LEGO Systems Inc. will be successful in its trademark infringement suit
against Ritvik Holdings Inc., the Montreal-based toy maker of a toy called
Mega Blocks.
But getting patent protection is ``difficult because many of these concepts
are not unique,'' said Rick Locker, an attorney with the Toy Industry
Association.
And in suing for trademark infringement, companies have to prove that that
there's reasonable confusion over the brand and its competitors, which is
also hard to prove.
``Kids are remarkably keen on what is an original and what is a knockoff,''
Locker said.
Some products have withstood competition from copycats because of exclusive
contracts with musical artists or sports stars.
For example, Tiger Electronics' Hitclips - postage-stamp sized computer
chips embedded with songs - which have generated $80 million in sales since
the product's launch about two years ago, according to Mark Rosenberg, vice
president of marketing at Hasbro, Tiger Electronics parent.
In addition to its micro chip technology, Tiger has developed strong
relationships with music companies, something difficult to copy, Rosenberg
believes. The line features 80 clips from 20 artists, including Britney
Spears and Destiny's Child.
``The key is going after the best music,'' Rosenberg said.
The big challenge for toy retailers this year will be to sort through the
many versions of bubbles, tops, and radio controlled products to determine
which will win over the consumer. So far, Toys ``R'' Us said it's placing
its bets on one item: Beyblades.
``A kid will say I want a Beyblade,'' said Greg Staley, president of U.S.
store division.``He won't say,'Get me something that looks like a Beyblade.''
-end of report-
Abner
GMLTC.ORG
LUGNET #545
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Message has 1 Reply:
 | | Re: Toy companies: Original vs Copycats
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| (...) This trademark lawsuit is still going on in some court? The only information I could easily turn up refers to a 1993 lawsuit in France where the judge declared Ritvik was not infringing by using a 2x4 brick logo, which I expect Lego (or (...) (23 years ago, 21-Feb-02, to lugnet.mediawatch)
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