Zuru has filed a lawsuit seeking damages against MGA Entertainment in a complaint that challenges the LOL Surprise maker’s efforts to eliminate healthy competition in the surprise blind-boxed collectables sector.
The lawsuit is in reference to what Zuru and its wholly owned subsidiaries Creative Impact state is MGA’s attempt to ‘wrongly assert nonexistent copyright, trade mark and trade dress intellectual property rights against Zuru’s 5 Surprise product line.
It also references ‘other unlawful business practices’.
Zuru launched its 5 Surprise range of products in March last year, tapping into the surprise unboxing trend with a product children unwrap, peel, and reveal 5 Surprise toys in five or four segment spherical capsules.
Both online and via a California state court proceeding, MGA has alleged that Zuru’s 5 Surprise product and related packaging infringes MGA’s purported IP rights in LOL Surprise.
However, Zuru’s lawsuit stated that MGA’s allegations are based on nonexistent or overly broad interpretations of alleged trade dress and other IP rights. It also addresses ‘MGA’s unfair competition through online bullying designed to unfairly maintain market share, stifle legitimate competition and monopolise the unwrapping surprise toy segment.’
“We are passionate at Zuru about innovation and making high quality toys and play experiences,” said Anna Mowbray, chief operating officer of Zuru. “Zuru’s fresh and novel approach has made us one of the fastest-growing toymakers in the world.
“Unfortunately, it’s also made us a target of bigger and outworn competitors who would seek to bully disruptors from the market. Our commitment is to innovation and fair play – for children and the market – and that is what this lawsuit is about.”