DIC Files $20-Million Lawsuit Against Troll Company

BURBANK, October 24: In a federal court in Los Angeles
today, DIC Entertainment lodged a suit against the Troll Company (TC), alleging
“claims of fraud in the inducement and negligent misrepresentation” in
connection with its deals for the original Good Luck Troll and the revamped
Trollz brands.

Good Luck Troll is the original 1950s-era troll doll created
in Denmark. The Trollz is a modernized version that was created by DIC in 2003
and turned into an animated TV series. DIC licensed both properties from TC.

DIC alleges that, in connection with its licensing
agreements with TC, it successfully created, developed and marketed the Trollz,
and attempted to reinvigorate sales of the Good Luck Troll. Prior to signing
the deal, however, DIC said it expressed concern about the sale of counterfeit
Good Luck Trolls and other infringing products. DIC maintains that it received
repeated assurances from TC that it was being vigilant in stamping out any
counterfeits, and that it was not aware of any infringements at the time. DIC
alleges that, at the time that TC made these representations, it knew that the
Good Luck Troll was the subject of widespread infringement. DIC maintains it
spent nearly $20 million to develop and promote the Good Luck Troll and Trollz,
“properties whose value had (without DIC’s knowledge) been compromised by
rampant infringement,” a press release from the company said today.

DIC’s is seeking damages of approximately $20 million, plus
attorney fees and punitive damages.

-By Mansha Daswani