Effective Strategies for Safeguarding Intellectual Property Rights in Children’s Toys and Games
In the fiercely competitive landscape of the toy industry today, finding innovative, entertaining, and unique ways to engage children in play is paramount for achieving business success. However, innovation loses its value if the associated intellectual property isn’t adequately protected. Regardless of the stage of product development, safeguarding intellectual rights must always remain a top priority. Registered intellectual rights serve not only as a crucial tool in the battle for competitiveness within the market but also as a prerequisite for preserving and capitalizing on a company’s rights.
It’s no secret that numerous toy and game manufacturers, both domestic and international, maintain extensive portfolios of intellectual property rights, most of which are duly registered or deposited. These encompass a wide array of protections, including patents for inventions, utility models, industrial designs, trademarks, and copyrights, all shielded on a global scale. For toy manufacturers, securing and diligently managing these patents, trademarks, and copyrights are fundamental tasks. Furthermore, companies in this sector must navigate a complex web of legal and regulatory requirements, encompassing product liability and advertising compliance. Regrettably, the toy industry is plagued by counterfeit products and unscrupulous entities that exploit the intellectual property of legitimate market players. Copying toys and introducing them to the market is often a straightforward endeavour for counterfeit manufacturers. As soon as a legitimate manufacturer produces a successful product, imitators emerge swiftly. Many companies are unaware of the existence of others’ intellectual property rights and the potential repercussions of infringing upon them. Consequently, some unknowingly replicate popular products, believing their actions to be within the boundaries of the law.
Hence, it’s essential for any toy manufacturer to formulate an intellectual property protection strategy that offers a swift and relatively cost-effective means of safeguarding and defending their rights when necessary. Given the short lifecycle of toys and the volatility of the industry, devising an effective protection strategy at an early stage, well before market entry, is of paramount importance.
One exemplary model for intellectual property protection strategy, not for imitation but for inspiration, is the approach adopted by the LEGO company. In 1958, LEGO filed its first patent application for a component of its most renowned construction toy. Today, LEGO boasts an extensive portfolio of intellectual property rights across various domains, and like many other prominent toy manufacturers, vigorously defends its intellectual property.
Intellectual property rights pertaining to toys can encompass patents for inventions, utility models, industrial designs, trademarks, and copyrights, either in their entirety or concerning individual components. In addition, the toy industry, indirectly, extends to video games, which may also involve a set of intellectual property rights, including those associated with software, databases, and copyrights (encompassing graphics, music, audio, and video content). Many of these rights entail specific formalities, such as filing applications with the relevant territorial authorities. Copyrights automatically arise upon the creation of an original work, obviating the need for application filing. However, in some jurisdictions, registering copyrights can be advisable to establish a sound evidentiary foundation in case of disputes.
Patent rights, encompassing inventions, utility models, and industrial designs, are highly effective but come with time limitations and maintenance requirements. Obtaining a patent can be challenging, requiring precise drafting of the patent application, comprehensive descriptions of the invention, and accurate formulation of its claims, which determine the scope of legal protection provided and thus influence the possibilities for defence.
The appearance of products, including toys, their aesthetic aspects, as well as their artistic and design features can be safeguarded through industrial designs. Given the importance of a toy’s visual appeal in a buyer’s choice, toy designers often prioritize the protection of decorative aspects. In this context, filing design applications might represent the most suitable and cost-effective strategy for a company. Moreover, many countries offer relatively short processing times for design applications, granting formal protection shortly after submission.
When a toy involves substantial production costs, such as investments in specialized moulds, obtaining a utility model patent may outweigh securing a design patent. Design protection solely pertains to a product’s appearance, with patentable subject matter typically comprising images or photographs. Design applications claim products depicted in drawings or photographs, making it less flexible if manufacturers intend to alter a product’s appearance during production. Utility model protection can offer distinct advantages for products with protracted development timelines or unclear final appearances, potentially offsetting the associated costs over time. There are alternative methods of legally safeguarding intellectual property, such as copyrights, which can extend up to 70 years after the author’s death in some jurisdictions, and trademarks, which can be renewed every ten years with no limit on the duration of protection if renewed promptly.
It’s crucial to remember that intellectual property rights adhere to the principle of territoriality. If a manufacturer wishes to combat infringement in a particular country, such as China, they must register their trademarks and patents in that jurisdiction. Notably, well-publicized cases of intellectual property infringement in China, involving characters like Peppa Pig or the copyright of LEGO, demonstrate that China provides effective mechanisms for dispute resolution, offering various avenues for right holders to assert their intellectual property rights professionally.
Typically, the strategy for registering intellectual property rights involves securing protection initially in the home country, such as Russia, and then, depending on market preferences and priorities abroad, pursuing protection regionally or nationally. The most significant advantage of having duly registered and legally protected intellectual rights is the potential for commercial exploitation, not only by the right holder but also through licensing or franchising agreements with other businesses, including producers of goods, animated films, movies, and entertainment enterprises.
In conclusion, innovation, creativity, vigilant protection of intellectual property, and thoughtful registration and preservation of rights are essential prerequisites for successfully promoting products in a highly competitive market. Every company should develop a strategy for filing intellectual property applications, identifying the elements of their toys that require protection and determining the appropriate means and territories for protection. Confidentiality is equally crucial, as premature disclosure of product information can not only provide an unfair advantage to unscrupulous competitors but also hinder future patent or design rights. Contrary to popular belief, creators of original products are not defenceless against counterfeiters. With the constant evolution and adaptation of legal tools, intellectual property lawyers and patent attorneys can effectively apply these resources to provide robust legal protection.
Vladimir Trey
Managing Partner of «Trey Legal» LLC
