The litigation was resolved without admission of liability, subject to the terms of a confidential settlement agreement.
Spinmaster and Silverlit Toys filed a joint lawsuit against KB Toys and Westminster to stop sales of a competing mini helicopter.
The lawsuit alleged the Thunder Wolf Mini Indoor MicroLite Helicopter infringes certain US design patents owned by Silverlit, creator of the Havoc Heli, which is licensed by Spinmaster and sold as the Air Hogs Havoc Heli.
The lawsuit also alleged KB and Westminster conspired to copy the helicopter and replace its sales with the Thunder Wolf.
In dismissing the case, the United States District Court in Atlanta outlined the settlement terms and ordered that Westminster acknowledges the existence of and presumption of validity of the Patents-in-Suit, and agrees never to challenge or assist others in challenging the validity of the Patents-in-Suit. KB agreed to the same unless those patents are asserted against KB.
Payment has been made by Westminster to Silverlit and Spinmaster in consideration of this agreement.
Westminster must not make, use, sell, offer for sale or import the Thunder Wolf, or any remote controlled lightweight mini helicopters using any of the designs claimed in the Patents-in-Suit, or any claims or designs of the Silverlit IP.
And KB has agreed not to make, use, sell, offer for sale or import or transport any Thunder Wolfs, other than the collection, destruction and other duties provided for in the Settlement Agreement and Release.