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Subject: 
Re: LEGO® Launches Battle Over Trademark
Newsgroups: 
lugnet.mediawatch
Date: 
Sun, 22 Nov 2009 21:12:57 GMT
Viewed: 
14608 times
  
In lugnet.mediawatch, Dave Schuler wrote:
   1. Competition. I wonder what path LEGO would have chosen in the mid-90s if they didn’t have a significant market competitor to deal with. Mega Bloks was just starting to reach its stride when LEGO was mired in juniorization, clothing lines, and dubious software ventures. A good many of Mega Bloks’ sets, in fact, were basically bulk-brick delivery systems, while LEGO was still moving into its “some assembly required” phase. Sure, the LEGO pendulum has swung very nicely back toward cool designs that require actual building, but it was touch-and-go there for a while.

You’re assuming that TLC actually took cues from MB in terms of how to fix their business model. In terms of the AFOL market, all it meant to TLC was that their customers stopped buying as much stuff, not that they started buying the competition. Parents who were buying strictly for their kids might not have even noticed any difference in design style.

   I’m also quite sure that Star Wars gave LEGO a big boost, but I don’t believe that it was sufficient in itself to turn LEGO away from the juniorization Dark Side.

Star Wars was, in the early 00’s, only the second-best selling theme for TLC. The top seller was BIONICLE, with the Designer/Creator sets and Harry Potter filling the next two spots in the ranking. Two of those lines (SW and HP) were very likely more about the property than anything to do with set design, since both pulled in a significant market share of people who were fans of those properties, but that had no real interest in the LEGO system in general (and still don’t). BIONICLE had a strong original story combined with the whole collectible angle to make it a success, and it sold so strongly that even as the rest of the LEGO lineup was faltering, they had to set up a new production line to keep up with the demand for BIONICLE parts sometime in late 2001/early 2002.
  
2. I would characterize Mega Bloks, Best-Lock, and K’NEX as legitimate competitors in the LEGO-compatible construction business, because each has staked out its own section of the marketplace, and each produces sets that are distinct from anything that LEGO has ever put out. But there are many questionable brands that routinely defy patents and intellectual property rights, copying LEGO sets outright and even copying current or recent Mega Bloks sets (“cloning the clones,” as Larry Marak has coined it). These latter brands are acting unethically and (in some cases) illegally, and they contribute to the overall negative opinion of “clone” brands.

I think you’re blurring the lines between competitors, clones, and bootlegs. If it’s an original system like K’Nex, it’s a straight competitor. If it’s original sets using the same basic system/dimensions as the LEGO system, it’s a clone. If it’s just copies of older LEGO sets (such as those that are regularly kicked out of the Asian Toy Fairs), then it’s a bootleg. Whether the clones are as legitimate in terms of competition as those companies that came up with their own original construction toy systems is still a matter of legal contention.

   Competition is key to protect us from the likes of Galidor, but legal standards must still be maintained so that proprietary rights aren’t violated.

Galidor is the key to protect us from the likes of Galidor. Nothing contributed to the demise of that theme more than the simple fact that the TV show completely failed to find a market. Without the show, the toys were destined to be a flop. If the show had become the next Power Rangers, the toys would have sold like hotcakes, regardless of what any AFOLs think.

Remember, when Galidor was announced, there was a huge AFOL backlash against licensed themes. These rants failed to account for the already massive success of the SW and HP themes, the future success of Dora, Thomas the Tank Engine, Spongebob, and Indiana Jones, or the simple fact that BIONICLE was not licensed like the rest of those themes and was outselling everything.



Message is in Reply To:
  Re: LEGO® Launches Battle Over Trademark
 
(...) That's a great point, Dave, and it brings to mind two related issues: 1. Competition. I wonder what path LEGO would have chosen in the mid-90s if they didn't have a significant market competitor to deal with. Mega Bloks was just starting to (...) (15 years ago, 19-Nov-09, to lugnet.mediawatch, FTX)

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