Troll Company Rejects DIC Claims as “Baseless”

LOS ANGELES, October 26: The Troll Company has responded to
DIC Entertainment’s $20-million lawsuit filed earlier this week, calling the
allegations of fraud and negligent representation “baseless.”

On Wednesday, DIC Entertainment lodged a suit against the
Troll Company (TC), alleging fraud and negligent misrepresentation in
connection with its deals for the original Good Luck Troll and the revamped
Trollz brand that was created by DIC in 2003 and turned into an animated TV
series. DIC licensed both properties from TC.

Patricia Glaser, the attorney for Troll Company, issued a
statement noting: “The claims in DIC’s lawsuit are baseless and have no merit
in fact or law. As will be demonstrated in our complaint that alleges fraud and
will be filed on Monday—a draft of which has been in the hands of DIC for
more than two months—it is DIC that is the wrongdoer, not Troll Company. This
effort to file their lawsuit first while pretending to mediate with us is a
pathetic PR ploy.”

The statement continues: “More than two months ago, Troll
Company gave DIC its demand for arbitration together with a draft of a lawsuit
charging DIC with fraud. DIC asked Troll Company to postpone the filing of the
claims until it had a chance to mediate the dispute. It was agreed that the
mediation would be between principals and attorneys only and take place in Los
Angeles. Troll Company’s principal flew in from Denmark. DIC’s CEO, who lives
in the Los Angeles area, did not make an appearance. Later that same day, DIC
filed its complaint.”

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.

“DIC’s complaint speaks for itself,” says Josh Meyer, DIC’s
senior VP of business and legal affairs, in response to the Troll Company’s
statement. “DIC looks forward to pursuing its claims before a judge and jury,
where we have no doubt that we will prevail.”

—By Mansha Daswani