MGA was granted default judgment of $1,171,500, and a permanent injunction against 81 counterfeiters.
The default judgment and permanent injunction follows a preliminary injunction granted in January 2018, and a temporary restraining order granted in December 2017, that enjoined all defendants from selling L.O.L. Surprise! counterfeit products on digital marketplaces Alibaba.com, Aliexpress.com and DHGate.com, and froze the defendants’ bank accounts. The default judgment now permanently prohibits the defendants from any further sales of L.O.L. Surprise! counterfeit products. In addition, the financial institutions that the defendants used for counterfeit sales, including PayPal.com and Alipay.com are to immediately turn over any funds previously frozen by the Court’s December 2017 asset freeze.
Isaac Larian, CEO of MGA Entertainment, commented: “With this ruling, we have successfully protected our brand and intellectual property from counterfeiters looking to defraud consumers. This judgement is significant, declaring loudly that we will stop at nothing to prosecute any and all counterfeiters to the fullest extent of the law. Criminal activity of this nature has no place in the toy industry, and I’m very pleased with the court’s decision.”
“MGA Entertainment continues to track down all manufacturers and suppliers in China that provided defendants with counterfeit L.O.L. Surprise! products, and is taking all legal action to close down any such manufacturers and suppliers it identifies. To aid in our continued prosecution of counterfeiters that sell and/or distribute counterfeit goods, MGAE is proud to announce the issuance of US Patent 9,931,579 B1, covering the unique and original attributes of our L.O.L. Surprise! product, including the ball itself. Our new patents will be aggressively used to defend the L.O.L. Surprise! brand and pursue infringers in the United States.”
Isaac continued: “The fight against counterfeiters does not stop here. We will continue our work to protect consumers and seek justice against any criminals creating or distributing fraudulent knock-offs. Our IP portfolio will be enforced whenever and wherever possible with retailers, including ecommerce sites, who infringe upon our intellectual property rights.”