Hasbro accused Lanard of infringing US patents with its Total XStream Air Fire Shot; Total XStream Air Ring Accelerator and Air Zone Ring Accelerator lines.
Lanard has agreed to stop selling the products and Hasbro has now dismissed its claims of infringement against Lanard.
A statement from Lanard explained: "Hasbro waited almost seven years to file the lawsuit even though Lanard's Fire Shot and Ring Accelerator had been on the market since 2003. Lanard took the view that Hasbro's claims were blocked by the legal theory of laches. This theory could void the rights of patent holders who sleep on those rights for over six years."
The firm has sought re-examination of the asserted patents at the US Patent and Trademark Office, arguing that prior art existed invalidating the patents asserted by Hasbro. Another toy producer, Ganz has also challenged the patents, according to Lanard.