Hasbro Sued for Patent Breach - Analyst Blog

Toy-maker, Hasbro Inc. (HAS), recently filed a case against its two rivals Buzz Bee Toys, Inc. (a toy and game company located in Oakland ) and Lanard Toys, Inc headquartered in Hong Kong for patent violation of its Nerf and Super Soaker brands. The case was filed in the United States Federal Court in Springfield , MA .

Patent is an exclusive intellectual property right to the inventor, which prevents others from making, using, selling, or distributing the patented invention without permission. According to Hasbro, both companies have tampered with the patents for gain and therefore, want them both to stop making the toys.

Hasbro is claiming an unspecified monetary compensation from both the companies for the damage done by illegal use of its technology.

We expect the verdict of the lawsuit in favor of the company. However, if the verdict does not favor Hasbro it will definitely tarnish its image. Hasbro can also settle the dispute amicably with both the companies.

Hasbro reported an adjusted earnings per share of 26 cents in first quarter 2010, excluding a favorable tax adjustment, well ahead of the Zacks Consensus Estimate of 16 cents per share and 14 cents per share in the year-ago period. The better-than-expected results were driven by a strong demand for its product lines. With a recovery in the economy, the company is experiencing favorable consumer spending trends.

Hasbro’s primary competitors in the toy and games market include JAKKS Pacific Inc. (JAKK) and Mattel Inc. (MAT).

Based in Pawtucket , Rhode Island , Hasbro is engaged in the design, manufacture and marketing of games and toys. The company principally provides children’s and family leisure-time and entertainment products and services. It offers various games, including traditional board, card, hand-held electronic, trading card, role playing, plug-and-play and DVD games, as well as electronic learning aids and puzzles. The company was founded in 1923.