US: Mattel wins in Outburst case

A jury has issued a verdict in the $2 million licensing dispute with the inventor of the board game.
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Law.com has reported that a Los Angeles jury found that Mattel met its obligations in a deal with Hersch & Co for board game Outburst.

Hersch & Co sued the toy giant for breaking a licensing contract signed in 2004. Mattel was to spend $2 million in advertising Outburst from 2006 to 2008, according to court documents.

Hersch argued that Mattel had failed to pay the sum to advertise the game.

Mattel insisted that it had spent $2 million in advertising by selling 117,648 units of the game to Toys R Us and Kmart for $1.20 per unit — a $17 discount that netted about $2 million in advertising.

Mattel said it began the programme, which also involved store placement and promotions, after retailers lost interest in the game.

Mid trial, LA County Superior Court Judge, Kevin Brazile, granted Mattel's motion for non-suit as to breach-of-contract and additional claims.

The jury found that Mattel had satisfied its requirement under the contact.

"This jury verdict, on top of the various rulings by the Court, is a complete vindication for Mattel," said Jeffrey Korchek, vice president for business and legal affairs.

"We have maintained from the beginning that not only did Mattel comply with the terms of the licensing agreement, but that, in fact, the company far exceeded the advertising requirements throughout the term of the agreement."

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