MGA dismisses Innovation lawsuit as 'specious'

Firm says it is still waiting for the suit to be served and will seek 'prompt dismissal' of it.
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The lawsuit accuses MGA of manufacturing, advertising, promoting, distributing and/or selling products that were derived from components of the Hexbug Nano micro robotic toy, created by Innovation First.

MGA claims it learned of the suit through press reports and says the lawsuit was filed despite IFI's sworn testimony last month to a federal judge in Los Angeles admitting that MGA's Legend of Nara Battling Bug collection "is substantially different" from the Hexbug Nano and IFI did not have any infringement claims against MGA's Nara Bug.

MGA's release on the matter says the new suit appears to be "a marketing ploy by IFI intended to mislead customers".

According to the statement: "Earlier this year, based on statements by IFI to certain customers of MGA, MGA filed a complaint against IFI in federal court in Los Angeles asking for a declaration from the court that IFI has no intellectual property rights in the Hexbug Nano and that the Nara Bug does not infringe any rights of IFI.

"In asking for a dismissal of the case, IFI informed MGA and the Court that it had no claims against MGA because 'the outward appearance of the current Legend of Nara Battling Bugs toys from MGA . . . is substantially different from the outward appearance of the HEXBUG Nano, so that the trade dress and copyright laws do not appear to be implicated.'

"IFI also assured the Court that no dispute existed between IFI and MGA because the current facts and circumstances do not create a real or reasonable apprehension that MGA faces the threat of liability to either IFI or IF Labs.

"IFI likewise admitted to the Court that it does not have any patents covering any aspect of the Hexbug Nano.

"As IFI assured the court in Los Angeles, the parties' products are 'substantially different' in design and appearance, and 'IFI and IF Labs have indicated, repeatedly, that they have no plans to sue MGA' for infringement. IFI's Texas lawsuit contradicts these clear representations by IFI to the court and MGA and, based on the earlier representations and the plain differences in the products, MGA will seek a prompt dismissal of IFI's specious suit."


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