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Spin Master v. Aciper

Patent, But Not Trademark, Infringement Claims Stand Against Chinese Firm Over Toy

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OPINION & ORDER Defendant Jscout (“Jscout”) moves to dismiss the Second Amended Complaint filed against it by Plaintiffs Spin Master Ltd. and Spin Master Inc. (“Plaintiffs”). Because I find that Plaintiffs have (1) failed to plead sufficient facts to plausibly allege their claims for trademark infringement or to support their “related” state law claims as against Jscout, and (2) plausibly alleged their patent claims, Jscout’s motion to dismiss is GRANTED IN PART and DENIED IN PART. I. Factual Background1 Plaintiffs are part of “a large, multinational toy and entertainment company” that sells a variety of “children’s lifestyle products and toys under” various brandings. (SAC 9.)2 One of Plaintiffs’ brands is “Air Hogs,” which consist of various remote-control toys.3 Of relevance for this case is the “Zero Gravity Laser Racer” product line (the “Racer Products”), a group of remote-controlled toy cars that use “patented technology…to drive along the floor, up the walls, and even upside down” by following a beam of light projected by a remote control. (Id. 12.) In connection with the Racer Products, Plaintiffs own the federally registered trademarks “WALL CLIMBER” and “ZERO GRAVITY,” (the “WC Mark” and the “ZG Mark,” respectfully, and, together, the “Racer Marks”), for goods in class 28.4 (Id. 15). Plaintiffs say that they have undertaken efforts to develop “awareness and goodwill in their Racer Products and [Racer Marks],” (id. 17), and that the Racer Marks are “prominently placed in the minds of the public” and thus have “a valuable reputation and goodwill among the public,” (id.

21-22). Plaintiffs brought this suit against approximately 50 Defendants, all of whom are believed to be “individuals and/or businesses…located in China” that sell products mimicking the Racer Products to consumers in the United States through Amazon. (Id.

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