Kids II Receives Favorable Ruling in Royalty Contract Dispute
ATLANTA, (April 23, 2019) – Kids II received a favorable jury verdict after a long legal battle over the intellectual property rights involving Oball™ products.
“This is a significant win for Kids II and demonstrates the integrity of our business practices. We are pleased with the outcome.,” said Dave Calhoun, Kids II president
In 2010, Kids II purchased the intellectual property (IP) embodied in the Oball™ brand and entered into a royalty agreement. As Kids II developed new products, a legal dispute focusing on the royalty rates spelled out in the agreement began.
In January 2016, Kids, II, Inc. and subsidiary GOT I, LLC, sought a declaratory
judgment as to their rights under the royalty agreement it signed in December 2010 with the defendants, XRT, Inc. and David E. Silverglate. In November 2015, the defendants alleged that, under certain disputed royalty rates, GOT I failed to pay a portion of the royalties.
Disputing the claims, Kids II and GOT I requested declarations that (1) GOT I did not owe the unpaid royalties, and (2) that the royalty rates the defendants claimed were incorrect.
Foley & Lardner LLP, the external law firm leading the case, along with the company’s in-house legal team, secured summary judgment and a favorable jury verdict on behalf of Kids II, Inc. before the U.S. District Court for the Northern District of Georgia Atlanta Division. The jury determined on March 25, 2019, that the rates Kids II paid were proper for 90 percent of the disputed products, covering more than 98 percent of the sales revenues associated with the Oball products.
About Kids II
Kids II®, Inc. is a global company that designs products to help early-stage parents and families create tiny wins that build bright futures. The Kids II portfolio includes the leading infant, baby, and toddler brands Baby Einstein™, Bright Starts™, Ingenuity™, and Oball™. Headquartered in Atlanta, Kids II spans globally with 14 offices in five continents serving customers in more than 72 countries.
