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1 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN, ATTORNEY AT LAW LISA J. BORODKIN, ESQ., STATE BAR NO. 196412 [email protected] 2009 CLARK LANE B REDONDO BEACH, CALIFORNIA 90278 TELEPHONE: (323) 337-7933 KING, HOLMES, PATERNO & BERLINER, LLP HOWARD E. KING, ESQ., STATE BAR NO. 77012 [email protected] 1900 AVENUE OF THE STARS, 25TH FLOOR LOS ANGELES, CALIFORNIA 90067-4506 TELEPHONE: (310) 282-8989 FACSIMILE: (310) 282-8903 Attorneys for Plaintiff Elinor Shapiro
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION
ELINOR SHAPIRO,
Plaintiff,
v.
HASBRO, INC., and DOES ONE to
TEN,
Defendants.
CASE NO. COMPLAINT FOR (1) BREACH OF CONTRACT (2) BREACH OF IMPLIED COVENANT (3) MISAPPROPRIATION OF TRADE SECRETS (4) COPYRIGHT INFRINGEMENT JURY TRIAL DEMANDED
Plaintiff Elinor Shapiro (“Shapiro”) alleges as follows:
THE NATURE OF THIS ACTION
1. Shapiro, a proven toy inventor and marketing expert known for creating
and marketing collectible toys in the small doll category, was solicited by Defendant
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 1 of 51 Page ID #:1
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4354.061/879088.1 2 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
Hasbro, Inc. (“Hasbro”) to submit original materials for use with Hasbro’s existing
properties under an express Agreement to Hold Confidential (“AHC”).
2. Hasbro initiated Shapiro’s submission by a November 2, 2012 email
that described in detail the types of information Hasbro was seeking with phrases
such as “excitement, low cost innovations,” “never before seen mechanisms,” “new
ways to play,” and “newest and hottest girls trend” specifically in reference to
Hasbro’s existing properties including Littlest Pet Shop and My Little Pony.
3. Hasbro received Shapiro’s submissions at an April 25, 2013 meeting in
Santa Monica, California that Hasbro arranged as part of its West Coast Inventor
Tour. Hasbro thereafter asked Shapiro to send her slideshow and three-dimensional
prototypes to its headquarters in Pawtucket, Rhode Island to study for three months.
4. Hasbro thereafter took confidential information that Shapiro presented
under the AHC and used it without compensating Shapiro. A view of one of
Hasbro’s My Little Pony Cutie Mark Magic Water Cuties toys (an “Accused Toy”)
released subsequent to April 25, 2013 is shown at right in the below image, side-by-
side with one of Shapiro’s prototypes submitted under the AHC.
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 2 of 51 Page ID #:2
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4354.061/879088.1 3 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
5. A second view of the Accused Toy (shown below, at left) after it has
been shaken shows clearly that the glitter floating inside the Accused Toy is in a
symbolic shape (in this case, diamond-shaped). In the image below, the Accused
Toy is shown, with its diamond-shaped glitter, side-by-side with Shapiro’s
prototype, which together with Shapiro’s slideshow, expressed that each character in
Shapiro’s submission “has a special symbol, and symbol is floating inside that
character Æ further encouraging collectability.”
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 3 of 51 Page ID #:3
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4354.061/879088.1 4 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
6. The “excitement, low-cost innovation,” “never-before-seen
mechanism,” “new way to play,” and “newest and hottest girls trend” shown in the
foregoing pictures were not the only confidential information that Hasbro took from
Shapiro under the AHC. Despite this, Hasbro does not want to pay Shapiro for the
information it took under the AHC.
JURISDICTION AND VENUE
7. Jurisdiction is proper pursuant to 28 U.S.C. §§ 1332(a)(1) because the
Court has diversity jurisdiction over this action. The action includes claims solely
between a citizen of the State of California and a citizen of the State of Rhode
Island, and the amount in controversy exceeds, exclusive of interest and costs, the
sum of Seventy-Five Thousand Dollars ($75,000.00). Jurisdiction is also proper
pursuant to 28 U.S.C. §§ 1331 and 1338(a) because this action includes a claim
arising under the provisions of the Copyright Act of the United States, as amended,
17 U.S.C. § 101 et seq., and is for infringement of copyrights registered in the
Copyright Office of the United States.
8. Venue is proper in this judicial district pursuant to 28 U.S.C. §
1391(b)(2) and (d) in that Defendant or its agents may be found in this district, and a
substantial number of the acts or omissions giving rise to Plaintiff’s claim occurred
in this district.
THE PARTIES
9. Shapiro is a professional toy designer, inventor, consultant and former
toy company executive, and is a citizen of the City of Los Angeles, State of
California, with her principal place of business in Los Angeles, California.
10. Shapiro is informed and believes and thereupon alleges that Defendant
Hasbro is a company organized and existing under the laws of Rhode Island, and a
citizen of the State of Rhode Island with its principal place of business at 1027
Newport Avenue, Pawtucket, Rhode Island, and a registered agent for service of
process in California at 818 West Seventh Street, 2nd Floor, Los Angeles, California
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 4 of 51 Page ID #:4
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4354.061/879088.1 5 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
90017.
11. Shapiro is informed and believes and thereupon alleges that the nerve
center of Hasbro’s business is in Rhode Island, because that is where its home office
is located, where the majority of its executive and administrative functions are
performed, and where its high-level officers direct, control, and coordinate the bulk
of Hasbro’s day-to-day activities.
12. Hasbro is subject to the general and specific jurisdiction of this Court
pursuant to California Code of Civil Procedure § 410.10 and Rule 4 of the Federal
Rules of Civil Procedure. Hasbro transacts or has transacted business within the
Central District of California.
13. Shapiro is informed and believes and thereupon alleges that Hasbro has
systematic and continuous contacts with California, including by soliciting and
receiving orders from stores with locations in California, including Kmart
Corporation, Target Corporation, Toys “R” Us, Inc., the Walgreen Company, and
Wal-Mart Stores, Inc., and maintaining a business unit that focuses on girls’ toys in
Burbank, California.
14. Hasbro is subject to the specific jurisdiction of this Court, including in
that a substantial number of the transactions and occurrences in this action occurred
in California; Hasbro first received the confidential information under the AHC in
Santa Monica, California; Hasbro requested that Shapiro send the submission from
Los Angeles, California to Pawtucket, Rhode Island; and Hasbro breached the AHC
in Los Angeles, California, including by selling the Accused Toys in this District.
15. The true names and capacities of Defendants named herein as DOES
ONE through TEN, whether individual, corporate, associate or otherwise, are
presently unknown to Shapiro, who therefore sues these Defendants by such
fictitious names. Shapiro will amend her complaint to substitute such true names
and capacities when they have been ascertained. Shapiro is informed and believes
and thereupon alleges that each of the fictitiously named Defendants is responsible
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4354.061/879088.1 6 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
in some manner for the occurrences and damages alleged herein. Shapiro is
informed and believes and thereupon alleges that each Defendant herein is now, and
at all times relevant thereto was, the agent, employee, servant or alter ego of each of
the other Defendants herein and, in doing the things hereafter alleged, was acting
within the scope of such employment, agency, servitude or alter ego relationship.
16. Shapiro is informed and believes and on that basis allege that each of
the DOES has participated in or benefitted from the conduct of the named defendant
or is otherwise legally responsible in some manner for the matters alleged in this
complaint.
FACTS COMMON TO ALL CLAIMS
17. Shapiro is an internationally known toy inventor, consultant and former
executive for major toy companies Mattel, Inc. and the Walt Disney Company.
18. Since at least 1988, Shapiro has worked in the toy industry. Her
professional specialty is to create original toy concepts, stories, marketing and
packaging, particularly for small doll lines and marketing to girls.
19. Shapiro has worked on iconic doll lines for girls and small children,
including the Cabbage Patch Kids, Barbie, Polly Pocket, and dolls based on the
Disney properties, including Disney Princess, Disney Fairies, and Tinker Bell.
20. Shapiro was employed as a marketing executive for Mattel, Inc. from
1988 to 1995 managing multi-million dollar doll lines.
21. Shapiro was employed at the Walt Disney Company from 1995 to
1997, and thereafter as an independent consultant.
22. Shapiro has been retained as a consultant expressly to conceive original
story concepts, marketing materials and packaging copy for original and pre-
existing toy properties, including for the Disney Fairies, Tinker Bell, and Sofia the
First in 2013 and 2014.
23. Shapiro is regarded as a marketing expert on how girls play with toys
and games, and has been hired to create, market, write and design aspects of toys to
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4354.061/879088.1 7 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
appeal to girls, including video and interactive games based on pre-existing Disney
properties such as “Pocahontas” and “101 Dalmatians.”
24. Shapiro has managed other global, multi-million dollar toy lines and
brands including Nickelodeon toys and McDonald’s toys.
25. Shapiro has won Mattel, Inc.’s company awards for her work in
product development.
26. As a creative and marketing consultant since 1997, Shapiro’s clients
have included toy companies Mattel, Inc., The Walt Disney Company, MGA
Entertainment Inc., the Jim Henson Company, Playmates Toys, Inc., JAKKS
Pacific, Inc., Nakajima USA, Inc., Activision Blizzard, Inc., Wild Planet Toys, Inc.,
Diggin Active, Inc., and Shains, and other brands seeking to enter the toy market
such as Skechers USA Inc. and United Talent Agency.
27. Shapiro has been creating integrated toy concepts, marketing and
packaging proposals for license and direct manufacture since 2001.
28. In 2001, Shapiro entered into a benchmark transaction with Mattel, Inc.
demonstrating a concrete market for, and means of valuation of, a license of her
work, namely a 2001 royalty license agreement with Mattel, Inc. for an original
small doll line, which was sold at retailers including Toys “R” Us and Kmart, under
the name “Little Sparklin’ Clouds.”
29. In the toy industry, “play pattern” refers to how a consumer plays with
and interacts with a toy or product.
30. Shapiro is recognized, and regularly engaged professionally, for her
expertise in understanding girls’ and small children’s “play patterns” in doll lines.
31. Conventional wisdom in the toy industry is that story and character are
key aspects of marketing to girls, and that “play patterns” engage traits specific to
narrative stories that engage girls, such as personality traits, iconography and
character stories.
32. Shapiro is also recognized, and regularly engaged professionally, for
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4354.061/879088.1 8 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
her expertise in marketing mechanics, new and hot girls’ trends, and how dolls
should be presented at retail.
PLAINTIFF’S WORKS
33. Shapiro created in or about 2012 an original line of animal-shaped
small dolls named “Wishables” incorporating, inter alia, the magical play of a snow
globe into a character, doll or pet, and the novel inventions of using shaped glitter as
an iconography of unique symbols associated with character traits within the doll
and repeated on the packaging, building on the emerging trend of “snow globes.”
34. Shapiro’s original slideshow presentation, sculptural prototypes, and
in-person demonstration, together with all information contained therein, including
but not limited to idea, concept, design, story, features, advertising, focus group
research, news stories, trend analysis, marketing mock-ups, packaging, testimonials,
proposed integration with Hasbro existing properties, and licensing examples are
referred to hereafter collectively as the “Wishables Submission.”
35. A true and correct copy of the confidential slideshow presentation for
the Wishables Submission that Shapiro submitted to Hasbro under the AHC is
attached as Exhibit “1.”
36. A photograph showing three sculptures for the Wishables Submission
that Shapiro presented to Hasbro under the AHC is attached as Exhibit “2.”
37. The United States Copyright Office granted Shapiro Copyright
Registration Number VAu 1-194-503 in work entitled “Wishables” described as
“text, photograph(s), 2-D artwork, sculpture” based on Shapiro’s submission of
Exhibits “1” and “2” as specimens.
38. The United States Copyright Office granted Shapiro Copyright
Registration Number VAu 1-195-749 in work entitled “Wishables Models”
described as “sculpture” based on Shapiro’s submission of Exhibit “2” as a
specimen.
39. A photograph of five of the sculptures for the Wishables Submission is
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 8 of 51 Page ID #:8
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4354.061/879088.1 9 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
included as page 8 of Exhibit “1.”
40. A photograph of a sculpture Shapiro created for the April 25, 2013
meeting is below, showing an application of the Wishables Submission (at right) to
Hasbro’s existing Littlest Pet Shop property (expressing the symbol floating inside
the character) with a Hasbro Littlest Pet Shop doll then being sold (at left):
41. Shapiro took all reasonable precautions to keep the Wishables
Submission confidential, maintained materials related to the Wishables Submissions
in password-protected computers and secure physical locations at all times, and
required recipients of the information to sign non-disclosure agreements every time
that she presented them, beginning on or about June 11, 2012.
42. Shapiro’s original inventions and confidential information, in the
Wishables Submission included, but were not limited to:
a. A line of small dolls in eight different, collectible, animal
characters with a play pattern similar to familiar “snow globes” but instead of
being hemispheric or globe-shaped, the entire figure of the animal would be
in clear or transparent material, in which glitter would circulate in liquid when
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4354.061/879088.1 10 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
the doll was moved;
b. Instead of using white flakes simulating snow (as in conventional
“snow globes”) to use glitter shaped in a specific symbol that would swirl
around in the liquid inside the animal character;
c. Instead of mixing all shapes and colors of glitter together and
using the same mixture in all animal characters in the line, to differentiate the
animal characters and drive collectability by using a unique combination of a
shape and color of glitter in each of the eight animal characters in the line;
d. To associate each of the eight animal characters with its own
unique symbol, that would carry through the character’s narrative,
personality, special empowering personality, and on the packaging, further
appealing to girls’ play patterns, sending positive messages to girls, and
driving collectability;
e. Specifically, as expressed in the slideshow in the Wishables
Submission, a special iconography associated with the animal character, its
narrative and personality, and the symbol floating inside, namely: (1) Winnie
the pony – competition – trophy; (2) Sweety the penguin – love- heart; (3)
Beaux the puppy – friendship – paw print; (4) Moonzy the fawn – dreams –
moon; (5) Babesy the bunny – going places – flower; (6) Bettina Lily the
chick – wisdom – star; (7) Riskers the kitten – courage - happy face; and (8)
Sunnyside the hamster – sunny days - sun.
f. To repeat the symbol floating inside the character on the
packaging and advertising for the toy, further reinforcing the branding and
driving collectability;
g. Sculptures using Hello Kitty and Littlest Pet Shop showing how
the play mechanics, narrative symbol, packaging and branding could be
applied to existing properties or licensed;
h. Focus group research from girls in 2012 and 2013 collecting
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4354.061/879088.1 11 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
comments from actual girls about what they liked about the toys, story and
presentation;
i. Trend analysis from the New York Times and statements from
the TSA indicating that snow globes were predicted as a new and hot trend in
later 2012; and
j. The integration of all the foregoing elements.
43. A custom and practice in the toy industry is for inventors to model
aspects of new toys in “kit-bash” form, meaning, to show their features and
functions using toy and non-toy parts, and to present such “kit-bash” models in
combination with slideshows, and live demonstrations by the inventor.
44. Shapiro ingeniously solved the problem of how to visually express that
the Wishables Submission would have a play feature similar to “snow globes” by
sculpting original molds of different animal characters, casting the animal characters
with a translucent, colored resin, and affixing different shaped and colored glitter to
each animal character to simulate the play mechanics of shaking the toy.
45. Shapiro’s sculptures were in generally accepted “kit-bash” model form,
using pre-made glitter sorted into shapes and using different translucent colored
resin to represent the more detailed expression in the slideshow in the Wishables
Submission that in fact, each of the characters in the line would have its own unique
symbol, that such unique symbol would be the shape of the “glitter icon floating
inside;” that “Each Wishable has a special symbol, and that symbol is floating inside
the character Æ Further encouraging collectability;” and that the “package indicates
Wishable [character]’s ‘wish specialty’” through use of the unique symbol. (Exh. 1
at 12-13).
46. In the “kit-bash” sculptures in the Wishables Submission, Shapiro
represented the foregoing expression by using a heart-shaped glitter on a yellow
chick (Bettina Lilly), heart-shaped glitter on a green pony (Winnie), star-shaped
glitter on a purple puppy (Beaux), heart-shaped glitter on a pink kitten (Riskers),
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4354.061/879088.1 12 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
and star-shaped glitter on a blue fawn (Moonzie), to represent generally in “kit-
bash” form, using ready-made components, that Bettina Lilly’s symbol floating
inside would be heart-shaped, Winnie’s would be trophy-shaped, Beaux’s would be
paw-print-shaped, Risker’s would be happy face-shaped, and Moonzie’s would be
moon-shaped.
47. In a “kit-bash” sculpture in the Wishables Submission, Shapiro used
pre-made glitter in the shape of stars to model the application of her invention to
Hasbro’s existing Littlest Pet Shop property depicted in Paragraph 38 above,
showing how a star-shaped symbol floating inside the character with a “snow
globe”-like play mechanic could continue the star- or flower-shaped decal painted
on Hasbro’s existing Littlest Pet Shop character to extend the character’s personality
and narrative into a “new way to play” using a “low-cost innovation” and one of the
“newest and hottest girls trends.”
48. Shapiro is informed and believes and thereupon alleges that Shapiro’s
Wishables Submission contained information previously unknown to Hasbro,
including her variation on using shaped glitter as symbols to carry through a
narrative story, personality and character iconography to appeal to girls; repeating
such symbols on the package to drive collectability; and original market research
showing that the time was right to translate the new and hot “snow globe” trend for
Hasbro’s existing properties.
THE PARTIES’ COURSE OF DEALING
49. It is the custom and practice in the toy industry that toy companies
invite outside inventors to submit original inventions, including for use with existing
properties.
50. Injecting a “new feature” or “new way to play” into long-standing toy
properties on a regular basis is essential to the long-term sales prospects of existing
properties, as it allows for new lines of toys (“line extensions”) based on existing
properties and encourages collectability.
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4354.061/879088.1 13 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
51. The value of an outside inventor’s submission can be found in any
aspect of a play pattern, feature, packaging device, narrative expression, marketing
mechanic, market research, new combination of existing design elements,
innovation, proof of concept, three-dimensional expression, or other information
previously unknown to the toy company.
52. On November 2, 2012, Phil Sage of Hasbro introduced Shapiro over
email to Wayne Luther, Hasbro’s Senior Director of Global Acquisitions and
Director of Inventor Relations.
53. Sage’s introductory email disclosed that Hasbro recognized Shapiro as
a proven expert in girls toys and that the areas in which Hasbro was seeking
inventor submission were, inter alia:
“2. LPS [Littlest Pet Shop]: Animation new on the Hub, Want excitement, new surprises, low cost innovative feature[s] in pets, never been seen mechanisms. 3. Pony [My Little Pony]: Focus on hair, materials, styling innovation .. New ways to play[.] 4. Fashion dolls in general, a line or segment of product .. Not an item.
Newest and hottest girls trends.”
54. Based on the information that Hasbro was looking for “excitement, new
surprises, low cost innovative features,” “never been seen mechanisms” “new ways
to play” and “newest and hottest girls trends,” Shapiro created the new prototype
sculpture for inclusion in her Wishables Submission depicted in Paragraph 38 above
to show how Wishables could be adapted to Hasbro’s existing properties such as
Littlest Pet Shop.
55. On April 8, 2013, Hasbro sent Shapiro the AHC.
56. On April 15, 2013, Shapiro returned the signed AHC to Hasbro.
Thereafter, Shapiro received the fully signed AHC.
57. On April 25, 2013, Shapiro met with Wayne Luther, Mike Gray and
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LAW
Dougal Grimes of Hasbro at a suite at the Doubletree in Santa Monica, California
and presented the Wishables Submission.
58. None of the three foregoing Hasbro employees, in the April 25, 2013
meeting with Shapiro, or at any time thereafter, stopped Shapiro’s presentation or
disclosed to Shapiro that Hasbro was working on a concept that also involved
shaped glitter or glitter swirling in liquid inside a small doll, as would have been
customary in the custom and practice of the toy industry had Hasbro perceived any
overlap between the Wishables Submission and any of Hasbro’s projects in
development.
59. At the April 25, 2013 meeting, Luther requested that Shapiro Fedex the
sculptures in the Wishables Submission to Hasbro’s office in Pawtucket, Rhode
Island, and that Shapiro upload the slideshow in the Wishables Submission using
Hasbro’s electronic upload tool.
60. On May 1, 2013, Shapiro FedExed her sculptures to Hasbro and
uploaded the slideshow in the Wishables Submission according to Hasbro’s
instructions and in reliance on the AHC.
61. Hasbro had exclusive possession of sculptures in the Wishables
Submission from approximately May 2, 2013 to July 25, 2013 and had possession of
the slideshow in the Wishables Submission from and after May 1, 2013 after having
first received the information on April 25, 2013.
62. On or about July 25, 2013, Hasbro informed Shapiro that Hasbro was
“passing” on the Wishables Submission, stating “Pass: Not right for current
direction in pet shop.”
63. Hasbro did not at any time disclose to Shapiro that it was working on
any liquid and glitter filled toys in the small doll category or otherwise.
64. Thereafter, in August 2014, Hasbro invited Shapiro to a recruiting
event in Los Angeles, California and asked Shapiro to submit her resume and
portfolio of work for potential full-time employment with Hasbro.
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4354.061/879088.1 15 COMPLAINT AND DEMAND FOR JURY TRIAL
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HASBRO USES SHAPIRO’S INFORMATION IN MY LITTLE PONY
65. Shapiro is informed and believes and thereupon alleges that, some time
after receiving the Wishables Submission, Hasbro released new lines of small dolls
entitled My Little Pony Cutie Mark Magic Water Cuties, My Little Pony Rainbow
Shimmer, and variations thereof (collectively, the “Accused Toys”) with similarities
to the Wishables Submission.
66. Shapiro is informed and believes and thereupon alleges that Hasbro is
selling the Accused Toys through every major toy retailer in the United States,
including but not limited to Wal-Mart, Target, Toys R Us, Kmart, and Amazon, and
worldwide.
67. Shapiro is informed and believes and thereupon alleges that the same
designers at Hasbro that worked on the Littlest Pet Shop line in and around 2013
also worked on the My Little Pony line and had access to the Wishables
Submission.
FIRST CAUSE OF ACTION
(Breach of Express Written Contract)
68. Shapiro re-alleges paragraphs 1 through 67, as if fully set forth herein.
69. On or about April 9, 2013, Shapiro and Hasbro entered into the written
AHC.
70. On or about April 25, 3013, Shapiro first disclosed information
comprising the Wishables Submission to Hasbro under the written AHC.
71. In reliance on and in consideration of the AHC, Shapiro shared
confidential and proprietary information comprising the Wishables Submission
with Hasbro, including by providing Hasbro exclusive access for three months to
Shapiro’s unpublished sculptures, access to Shapiro’s unpublished slideshow, and
Shapiro’s confidential, in-person demonstration.
72. Shapiro fully performed all conditions and obligations required of her
under the AHC, including but not limited to labeling all confidential information
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 15 of 51 Page ID #:15
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4354.061/879088.1 16 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
thereunder “CONFIDENTIAL.”
73. Hasbro materially breached the AHC by the acts alleged above,
including, inter alia, using confidential information in the Wishables Submission
previously unknown to Hasbro in the Accused Toys.
74. Hasbro has not paid Shapiro any compensation for using the
information acquired under the AHC that was previously unknown to Hasbro,
although Hasbro initiated the transfer of information, Shapiro’s information was
directly responsive to Hasbro’s inventor brief in Hasbro’s November 2, 2012 email,
and it is Shapiro’s livelihood to create such information.
75. Shapiro is informed and believes and thereupon alleges that she has
been damaged by Hasbro’s material breach of the AHC, in an amount unknown but
exceeding at least $75,000.00, based, in part, on the reasonable and customary
royalty rates and advances for license of original toy inventions; sales of the
Accused Toys, which are conservatively estimated in excess of ten million dollars
($10,000,000.00); on Shapiro’s historical toy industry salaries and consulting fees;
and Shapiro’s 2001 benchmark transaction with Mattel, Inc.
SECOND CAUSE OF ACTION
(Breach of Implied Covenant of Good Faith and Fair Dealing)
76. Shapiro re-alleges paragraphs 1 through 75, as if fully set forth herein.
77. Shapiro and Hasbro entered into a contract, namely the AHC.
78. Shapiro fulfilled her obligations under the AHC.
79. Any conditions precedent to Hasbro's performance of the AHC have
occurred.
80. Hasbro unfairly interfered with Shapiro's rights to receive the benefits
of the AHC.
81. Shapiro was harmed by Hasbro's conduct in an amount unknown but
believed to exceed Seventy-Five Thousand Dollars ($75,000.00).
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 16 of 51 Page ID #:16
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4354.061/879088.1 17 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
THIRD CAUSE OF ACTION
(Misappropriation of Trade Secrets in Violation of
California Uniform Trade Secrets Act, Cal. Civ. Code § 3426 et seq.)
82. Shapiro re-alleges paragraphs 1 through 81, as if fully set forth herein.
83. Shapiro owned a trade secret, namely information, including a formula,
pattern, compilation, program, device, method, technique, or process, that derives
independent economic value, actual or potential, from not being generally known to
the public or to other persons who can obtain economic value from its disclosure or
use.
84. In particular, Shapiro owned a trade secret consisting of a device for
making small doll toys more collectible by taking the magical play of a snow globe
and incorporating it into the shape of a character, doll, or pet, with shaped glitter
extending the personality, identity and narrative of the character into a shape or
symbol that floats inside liquid in the character, which gained value by not being
known to the public or those skilled in the art.
85. In addition, the Wishables Submission as a whole was a trade secret as
an effective, successful and valuable integration of public domain elements and the
aforesaid trade secrets that had independent economic value and was protected
from misappropriation. (See Altavion, Inc. v. Konica Minolta Sys. Lab. Inc., 226
Cal. App. 4th 26, 47, 171 Cal. Rptr. 3d 714, 731 (2014), review denied (Aug. 20,
2014).)
86. Shapiro’s trade secret was the subject of efforts that were reasonable
under the circumstances to maintain its secrecy, including that Shapiro required
each and every recipient of the Wishables Submission to sign a Nondisclosure
Agreement or Agreement to Hold Confidential prior to receiving it; that Shapiro at
all times stored the Wishables Submission and related tangible materials in
password-protected computers and secure physical locations; that Shapiro labeled
the Wishables Submission “Confidential;” and that the Wishables Submission was
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 17 of 51 Page ID #:17
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4354.061/879088.1 18 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
unpublished prior to Hasbro’s use.
87. Hasbro acquired, disclosed, or used Shapiro's trade secret through
improper means, namely by breach of the AHC.
88. Hasbro's actions damaged Shapiro in an amount unknown but believed
to exceed Seventy-Five Thousand Dollar ($75,000.00).
89. Shapiro is informed and believes and thereon alleges that Hasbro
misappropriated her trade secret willfully and maliciously, entitling her to an award
of exemplary damages in an amount two times the amount of her actual loss or a
reasonable royalty, pursuant to Cal. Civ. Code. § 3426.3.
FOURTH CAUSE OF ACTION
(Copyright Infringement, 17 U.S.C. § 501 et seq.)
90. Shapiro re-alleges paragraphs 1 through 89, as if fully set forth herein.
91. On or about November 10, 2014 and November 13, 2014, Shapiro
submitted to the Register of Copyrights completed applications for registration,
deposit copies, and the applicable fees in order to register the copyrights in her
original, unpublished slideshow and sculptures expressing the Wishables
Submission. Shapiro’s application for a copyright registration in the sculptures
included the statement, “These are modeling the expression of having various
shapes and sizes of glitter floating and moving in liquid that is inside them.”
92. The slideshow and sculptures submitted by Shapiro to the Copyright
Office contain material that is wholly original to their author, Shapiro, and is
copyrightable subject matter under the Constitution and laws of the United States.
93. The Copyright Office granted Shapiro Copyright Registration Number
VAu 1-194-503 with effective date of registration of January 21, 2015 in work
entitled “Wishables” described as “text, photograph(s), 2-D artwork, sculpture”
based on Shapiro’s submission of the slideshow and sculptures in the Wishables
Submission to the Copyright Office as specimens.
94. The Copyright Office granted Shapiro Copyright Registration Number
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4354.061/879088.1 19 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
VAu 1-195-749 with effective date of registration February 9, 2015 in work entitled
“Wishables Models” described as “sculpture” based on Shapiro’s submission of the
photograph of the sculptures in the Wishables Submission attached hereto as Exhibit
2 to the Copyright Office as a specimen.
95. As the owner of the copyrights in the unpublished material in the
slideshow and sculptures comprising the Wishables Submission (collectively, the
“Copyrighted Works”), Shapiro secured the exclusive rights under 17 U.S.C. § 106,
among others, to make first publication of the Copyrighted Works and to prepare
derivative works therefrom.
96. Hasbro infringed, and is continuing to infringe, the Copyrighted Works,
including by infringing Shapiro’s right to make the first publication of the
Copyrighted Works; by copying, reproducing, preparing and selling works derived
from the Copyrighted Works; and inducing, causing, and contributing to others
committing similar violations, including by selling the Accused Toys in the Central
District of California.
97. Shapiro did not authorize Hasbro to make first publication of the
Copyrighted Works or to copy, reproduce, prepare derivative works from, display,
or sell products infringing the Copyrighted Works, or at all.
98. Hasbro did not seek or obtain any permission, consent, or license from
Shapiro for making the first publication of the Copyrighted Works or to copy,
reproduce, prepare derivative works from, display, or sell products infringing the
Copyrighted Works, or at all.
99. Hasbro’s infringing acts alleged herein were willful, deliberate, and at
least from and after December 2014, were committed with prior notice and
knowledge of Shapiro's copyrights. At a minimum, Hasbro acted in reckless
disregard of Shapiro's copyrights.
100. As a result of its actions, Hasbro is liable to Shapiro for willful
copyright infringement under 17 U.S.C. § 501. Shapiro suffered, and will continue
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 19 of 51 Page ID #:19
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4354.061/879088.1 20 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
to suffer, substantial damage, including the loss of the right to control first
publication of her work, loss of the right to keep the Wishables Submission
unpublished, and other losses, in an amount not yet ascertained, but which will be
determined according to proof.
101. In addition to Shapiro’s actual damages, Shapiro is entitled to receive
all additional profits made by Hasbro attributable to the infringement and not
counted in determining actual damages, pursuant to 17 U.S.C. § 504; and an
accounting of and constructive trust over all revenues that Hasbro has received as a
result of its wrongful acts.
102. In the alternative, Shapiro is entitled to statutory damages pursuant to
17 U.S.C. § 504(c), which should be enhanced by 17 U.S.C. § 504(c)(2) because of
Hasbro’s willful copyright infringement.
103. Hasbro's acts complained of herein have damaged, and will irreparably
damage, Shapiro.
104. Shapiro has no adequate remedy at law for certain of these wrongs and
injuries in that (i) Shapiro’s copyrights are unique and valuable properties which
may not have a readily determinable market value; (ii) the infringements by Hasbro
constitute deprivations of Shapiro's exclusive right to decline to release her
copyrighted work altogether, and to decline permission for the creation of
derivative works except on terms acceptable to Shapiro; and (iii) the loss of
Shapiro’s right to attribution in connection with the first publication of her work
has been destroyed forever, along with the intangible loss of the goodwill and
publicity that should have accrued to Shapiro.
105. Hasbro's acts of copyright infringement have caused Shapiro
irreparable injury and Hasbro threatens to continue to commit these acts, including
by planning a release of additional “waves” (or lines) of Accused Toys.
106. Accordingly, Shapiro is entitled to preliminary and permanent
injunctive relief pursuant to 17 U.S.C. § 502 restraining and enjoining Hasbro and
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4354.061/879088.1 21 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
its agents, servants and employees, and all persons acting thereunder, in concert
therewith or on its behalf, from using, copying, selling, displaying, or otherwise
exploiting the Copyrighted Works, or any works derived therefrom, including, the
Accused Toys.
107. Shapiro is entitled to an order pursuant to 17 U.S.C. § 503 that any of
Hasbro’s infringing products be impounded and destroyed.
108. Shapiro is also entitled to recover her attorneys’ fees and costs of suit
pursuant to 17 U.S.C. § 505.
WHEREFORE, Plaintiff Shapiro prays as follows:
A. For an award of damages in an amount to be proven at trial of at least
Seventy-Five Thousand Dollars ($75,000.00);
B. For restitution or disgorgement of all revenue Hasbro obtained by its
inequitable conduct, in an amount of at least Seventy-Five Thousand Dollars
($75,000.00);
C. For an award of the amounts that Hasbro has unjustly enriched itself
caused by misappropriation of Shapiro’s trade secrets that is not taken into account
in computing damages for actual loss;
D. For an award of exemplary damages in an additional amount not
exceeding two times the award under Paragraphs A and C above;
E. For an injunction prohibiting the continued sale of the Accused Toys in
any territory or by any party within the jurisdiction of this Court;
F. For an award of actual damages from the infringement of Shapiro’s
copyrights plus additional profits of Hasbro attributable to the infringement, or
statutory damages for copyright under 17 U.S.C. § 504;
G. For an order under 17 U.S.C. § 503 that any of Hasbro’s infringing
products be impounded or destroyed;
H. For an award of Shapiro’s attorneys’ fees and costs pursuant to Cal.
Civ. Code. § 3426.4 and 17 U.S.C. § 505; and
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4354.061/879088.1 22 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
I. For such other and further relief as the Court may deem proper.
DATED: April 21, 2015 Respectfully submitted, LISA BORODKIN, ATTORNEY AT LAW
By: /s/ Lisa J. Borodkin LISA J. BORODKIN
KING, HOLMES, PATERNO & BERLINER LLP Attorneys for Plaintiff ELINOR SHAPIRO
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4354.061/879088.1 23 COMPLAINT AND DEMAND FOR JURY TRIAL
LISA BORODKIN ATTORNEY AT
LAW
DEMAND FOR JURY TRIAL
Plaintiff hereby demands a jury trial as provided by Rule 38(a) of the Federal
Rules of Civil Procedure. DATED: April 21, 2015 Respectfully submitted,
LISA BORODKIN, ATTORNEY AT LAW
By:
/s/ Lisa J. Borodkin
LISA J. BORODKIN KING, HOLMES, PATERNO & BERLINER LLP Attorneys for Plaintiff ELINOR SHAPIRO
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 23 of 51 Page ID #:23
April
201
3!SP
ARKL
E!El
lie S
hapi
ro!
©2013&Sparkle&&&&Confiden3al&
EXHIBIT 1 24
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 24 of 51 Page ID #:24
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
We
know
gir
ls lo
ve..
.
The
Mag
ic o
f
Sn
ow
globe
s
EVER
Ythi
ng
Spar
kly
Glit
ter
& je
wel
s &
crys
tals
EXHIBIT 1 25
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 25 of 51 Page ID #:25
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
And
Ador
able
cha
ract
ers
too.
..
EXHIBIT 1 26
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 26 of 51 Page ID #:26
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Put
the
m a
ll t
oge
ther
an
d w
hat
do y
ou
get?
EXHIBIT 1 27
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 27 of 51 Page ID #:27
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
So w
hat
are
Wis
habl
es?
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habl
es a
re a
collec
tion
of
spar
kly
,
crys
tal-
like
char
acte
rs f
ille
d w
ith
glit
tery
liq
uid
w
ho h
elp m
ake
your
wis
hes
com
e tr
ue.
An
d ea
ch o
ne
has
a sp
ecia
l se
cret
wis
h ju
st f
or
you!
EXHIBIT 1 28
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 28 of 51 Page ID #:28
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Mee
t th
e W
isha
bles
EXHIBIT 1 29
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 29 of 51 Page ID #:29
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Mt.
Wis
hmore
is
the
most
mag
ical
pla
ce t
o b
e
It’s
alw
ays
snow
ing
glit
ter
fr
om
the
top o
f th
e pea
ks
to t
he s
par
kli
ng
sea
It’s
hom
e to
the
lit
tle
Wis
habl
es
who
hel
p m
ake
your
wis
hes
com
e tr
ue
So t
ell th
em w
hat
you
wis
h fo
r te
ll t
hem
the
wis
h fo
r yo
u
Beca
use
whe
n y
ou
wis
h up
on
a W
isha
ble
and
the
glit
ter
swir
ls a
nd
twir
ls
Kn
ow
tha
t yo
ur w
ish
has
been
hea
rd
whe
reve
r yo
u ar
e in
the
worl
d
The
Wis
habl
es s
tory
...
EXHIBIT 1 30
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 30 of 51 Page ID #:30
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
the
Wis
habl
es
Beau
x
Win
nie
Be
ttin
a Li
ly
Risk
ers
moon
zy
Pha
se I
Confiden3al&
EXHIBIT 1 31
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 31 of 51 Page ID #:31
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Con
cept
EXHIBIT 1 32
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 32 of 51 Page ID #:32
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
S&
Ever
y W
isha
ble
has
a
Secr
et m
essa
ge h
idde
n i
nsi
de!
**Transparent&par33on&keeps&secret&m
essage&in&bo=om&
sec3on,&s3ll&allowing&gli=ery&liquid&to&flow&throughout.&&
Each&character’s&base&is&covered&with&sparkly,&
colorful&snow&from&M
t.&Wishmore!&&
&1.#Turn&your&W
ishables&over.&&
2.#Use&the&M
t.&Wishmore&
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the&sparkly&snow&on&the&base.&
&
Mt.$Wish
more$Medallion$
3.#And&see&your&secret&&
&&&&message&that’s&&
&&&&floa3ng&inside!&
Surprise&secret&
WishOaOWoo&
message&floa3ng&
inside&which&is&
hidden&un3l&you&
get&home!**&
EXHIBIT 1 33
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 33 of 51 Page ID #:33
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
So w
hat’
s YO
UR
Wis
h-A-
Woo
(aka
secr
et m
essa
ge)?
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nie
the
Pon
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Wit
h pr
acti
ce,
that
rac
e is
your
s&
swee
ty t
he P
engu
in:
&Lo
ts o
f hu
gs 4
U&
Beau
x t
he p
uppy:
&UR
day
s ar
e fi
lled
wit
h fr
ien
ds&
Moon
zy t
he f
awn
:&Sw
eet
drea
ms
at b
edti
me&
Babe
sy t
he B
unn
y: &
UR m
orn
ings
are
sun
ny&
Bett
ina
Lily
the
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ck: &
Stra
ight
A’s
whe
n y
ou
stud
y ha
rd&
Risk
ers
the
kit
ty:&
New
sit
uati
on
s m
ake
U sh
ine&
Sun
nys
hin
e th
e Ha
mst
er:
Sun
ny,
hap
py
days
4 U&
EXHIBIT 1 34
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 34 of 51 Page ID #:34
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Char
acte
r
Whi
ch k
ind
of
wis
h is
my
spec
ialt
y?
Gli
tter
Ico
n
(fl
oat
ing
insi
de)
Win
nie
th
e Pon
y
Com
pet
itio
n&
(Tr
ophy
cup
) &
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ty t
he
Pen
guin
&Lo
ve&
(he
art)
&
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x t
he p
uppy &
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nds
hip&
(paw
pri
nt)
&
Moon
Zy t
he
faw
n&
drea
ms&
(M
oon
) &
Babe
sy t
he B
unn
y &
Goin
g pla
ces&
(fl
ow
er)
&
Bett
ina
Lily
the
Ch
ick &
Wis
dom&
(St
ar)
&
Risk
ers
the
kit
ty &
Cour
age&
(ha
ppy
face
) &
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nys
hin
e th
e Ha
mst
er
&
Sun
ny
days
&(
Sun
) &
And
ever
y W
isha
ble
has
a W
ish “S
pec
ialt
y”
whi
ch e
nco
urag
es c
ollec
tibi
lity
EXHIBIT 1 35
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 35 of 51 Page ID #:35
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Pac
kag
e in
dica
tes
Wis
habl
e’s
“wis
h sp
ecia
lty”
Ea
ch W
isha
ble
has
a sp
ecia
l sy
mbo
l, a
nd
that
sym
bol is
fl
oat
ing
insi
de t
he c
hara
cter
F
urth
er e
nco
urag
ing
collec
tibi
lity
EXHIBIT 1 36
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 36 of 51 Page ID #:36
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Wis
habl
es li
ght-
up w
hen
the
y si
t on
the
ir
spar
kly
gem
fro
m M
t. w
ishm
ore&
EXHIBIT 1 37
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 37 of 51 Page ID #:37
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Mt.
Wis
hmore
LEGE
ND:�
1. Ar
rival
Poin
t. W
ishab
les fi
rst
arriv
e he
re.�
2. S
ortin
g Ar
ea. G
ood
wish
es m
ove
onto
nex
t ph
ase.
Nega
tive
wish
es a
re to
ssed
into
the
spa
rkly
sea
wher
e th
ey in
stant
ly be
come
glit
ter�
3. Lig
ht-U
p Sl
ide.
Wish
es a
re c
arrie
d do
wn �
4. N
ap T
ime.
Wish
ables
hav
e a
nap
and
drea
m ab
out
the
wish
es�
5. S
nack
Tim
e. W
hen
Wish
ables
get
hun
gry,
they
he
ad to
the
sna
ck r
oom�
6. P
lay A
rea.
Some
times
Wish
ables
just
like
to h
ang
out
and
play..
.and g
low! (
Light-
up fe
atur
e)�7.
Eleva
tor.
Take
s Wish
ables
up
to t
he b
ridge
and
th
en c
ross
ove
r to
Mt.
Wish
more
’s hi
ghes
t—an
d mo
st
impo
rtan
t—pe
ak. E
levato
r spin
s too
!�8.
Mt.
Wish
more
Sum
mit.
Wish
ables
sit
on t
he
high
est
peak
, spin
aro
und,
and
while
the
ir gli
tter
swi
rls
and
twirl
s, yo
ur w
ishes
are
cry
stalliz
ed…a
nd s
oon
will
come
tru
e!�
The
plac
e w
here
wis
hes
go!
closed&&
view&
2&
1&
3&
4
5&
6&
7&
8&
EXHIBIT 1 38
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 38 of 51 Page ID #:38
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
I lov
e W
isha
bles
!
SHE’
S so
tin
y an
d ad
orab
le!
I wan
t to
ta
ke H
ER w
ith
me
alw
ays
I ’d m
ake
man
y w
ishe
s
I ’d w
ish
for
stra
ight
A’s
I ’d w
ish
I cou
ld b
e a
supe
rsta
r
I’d m
ake
a n
ew w
ish
ever
y m
orn
ing
I ’d m
ake
one
new
wis
h ea
ch w
eek
I ’d f
ind
a se
cret
pla
ce i
n m
y be
droo
m
to k
eep
ALL
my
Wis
habl
es
I lik
e th
e w
ay I
get
to s
ee t
he s
ecre
t m
essa
ge.
It f
eels
ver
y m
agic
al
I lov
e th
at t
hey
ligh
t up
!
I ’d w
ant
to k
eep
her
wit
h m
e al
way
s
I wan
t ev
ery
sin
gle
litt
le W
isha
ble!
And
IN T
HE W
ORDS
OF
TH
E EX
PERT
S...
Sour
ce:
Focu
s Gr
oups
201
2 an
d 20
13
EXHIBIT 1 39
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 39 of 51 Page ID #:39
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Snow
glo
bes
have
lat
ely
evolv
ed i
nto
som
ethi
ng
more
fas
hion
able
, in
tric
ate
and
expen
sive
. Re
tail
st
ore
s, f
ashi
on
des
ign
ers,
corp
ora
tion
s, m
ovi
e st
udio
s an
d vi
sual
art
ists
are
in
crea
sin
gly
crea
tin
g si
gnat
ure
globe
s, a
nd
not
just
for
the
holi
days
.
Source:&New&York&Tim
es,&December&19,&2012&
Snow
Glo
bes
are
hot
!
EXHIBIT 1 40
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 40 of 51 Page ID #:40
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
2012
Hol
iday
Win
dow
Sa
ks F
lags
hip
stor
e, N
YC
“We
alw
ays
have
a g
ener
al
idea
of
whi
ch h
olid
ay w
indo
w
wil
l be
mos
t su
cces
sful
an
d ge
t th
e be
st r
espo
nse
,” s
aid
Harr
y Cu
nn
ingh
am,
Sak’s
se
nio
r vi
ce p
resi
den
t fo
r de
sign
an
d vi
sual
m
erch
andi
sin
g. “I
per
son
ally
di
d n
ot e
xpe
ct t
he s
now
gl
obes
to
be a
s bi
g a
hit.”
Source:&New&York&Tim
es,&December&19,&2012&
EXHIBIT 1 41
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 41 of 51 Page ID #:41
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
“TSA
to
okay
sn
ow g
lobe
s fo
r ca
rry-
on”
Headline&from&CNN,&USA&Today,&NBC&and&others.&&&
Snow
glo
bes
mus
t be
pr
etty
pop
ular
if e
ven
the
TSA
is t
alki
ng a
bout
the
m!
EXHIBIT 1 42
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 42 of 51 Page ID #:42
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&Br
and
Over
view
Posi
tion
ing
Th
e on
ly c
ollec
tibl
e li
ne
of
spar
kly
, cr
ysta
l-li
ke
char
acte
rs f
iled
wit
h gl
itte
ry liq
uid
who
hel
p m
ake
your
w
ishe
s co
me
true
, an
d e
ach
on
e ha
s a
spec
ial se
cret
wis
h ju
st f
or
you
Tagl
ine
M
ay A
LL y
our
wis
hes
com
e tr
ue
Targ
et A
udie
nce
Gi
rls
4 –
8
&
EXHIBIT 1 43
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 43 of 51 Page ID #:43
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Colle
ctib
le S
trat
egie
s Cr
eate
a f
ren
zy a
nd
craz
e w
here
gir
ls
gott
a ha
ve W
isha
bles
to h
elp m
ake
all of
thei
r w
ishe
s co
me
true
, an
d di
scove
r al
l th
e se
cret
wis
hes:
• De
velo
p a
n e
xte
nde
d m
atri
x w
ith
endl
ess
poss
ibil
itie
s fo
r ch
arac
ters
wit
hin
eac
h th
emed
collec
tion
:
– Ea
ch c
hara
cter
has
the
ir o
wn
look,
per
son
alit
y,
and
spec
ial se
cret
wis
h fo
r yo
u –
Diff
eren
t sc
ales
: m
ini’s
, 2”
, 3”
• Hu
ndr
eds
to c
ollec
t!
EXHIBIT 1 44
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 44 of 51 Page ID #:44
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Colle
ctio
ns
& Th
emes
•
Gard
en
• Sa
fari
•
Jun
gle
• Do
mes
tic
•
Oce
an
• Fa
rm
• Ar
ctic
•
Zoo
• Af
rica
n
• W
ildl
ife
• Bi
rds
•
Fan
tasy
..
.jus
t to
nam
e a
few
!
EXHIBIT 1 45
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 45 of 51 Page ID #:45
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Plus
En
dles
s poss
ibil
itie
s fo
r m
ore
collec
tion
s!
Gard
en p
arty
Swee
ts &
tr
eats
Fr
ien
ds f
ore
ver
Frui
ty
drea
ms
Flow
er
pow
er
Pret
ty
Prin
cess
Hear
ts o’ l
ove
Kaw
aii
Cute
!
EXHIBIT 1 46
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 46 of 51 Page ID #:46
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
And
HUGE
Lic
ensi
ng
Oppo
rtun
itie
s,
such
as…
+�
EXHIBIT 1 47
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 47 of 51 Page ID #:47
©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&
Lin
e Op
port
unit
ies
Segm
ent##
Prod
uct##
SRP##
Descrip
7on#
Collec3bles&&
2”&W
ishables&&Themed&Collec3ons&&
$5.99&O&
$7.99&&
Different&themed&collec3ons.&
Hundreds&to&collect!&&
Deluxe&&
3”&Feature&W
ishables&
$9.99&O&
$10.99&
Includes&m
agical&light&up&display&base&
that&illuminates&your&W
ishables&OR&
Color&Change&&“crystal”&&character&
Carrying&Case&&
Carry&Case&w/&1&W
ishables&
$11.99&
Carrying&and&&Display&&Case&all&in&1.&&
Comes&with&1&special&&W
ishable&
Playsets&
MidOPriced&Themed&Playsets&&
$14.99&&
Themes&are&endless:&garden&party,&
tree&house,&ocean&&friends,&and&m
any&
more!&
Deluxe&M
t.&Wishmore&Playset&&
$19.99&O&
$24.99&
Deluxe&Playset&House&with&lights&and&
fun&m
agical&transforming&features&&
Ac3vi3es&&
Low&&&M
idOPriced&Themed&Ac3vity&Kits&&
$4.99&O&
$9.99&
Customize,&create&and&decorate&&your&
Wishables&&
Lifestyle&&
Jewelry&&&Fashion&Accessories&(Mini’s!)&
Backpacks/Purses/ClipOOns&
Plus&Sta3onery,&Room&Décor,&Plush,&Apparel&
and&m
ore!&
$4.99&O&
$19.99&
Wear&your&W
ishables&wherever&you&&
go!&&&
Live&the&W
ishables&lifestyle!&&
Licensing&&
Disney,&Hello&Ki=y,&Barbie,&Paul&Frank&and&
other&relevant&top&proper3es&&
Licensing&opportuni3es&that&combine&&
girls’&favorite&characters&with&a&
Wishables&collec3ble&
EXHIBIT 1 48
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 48 of 51 Page ID #:48
Wis
habl
es -
Reas
ons
Why
•
Wis
habl
es c
om
bin
es t
he u
niv
ersa
lly
belo
ved
them
es o
f w
ishi
ng
and
secr
ets
wit
h al
l th
e th
ings
tha
t gi
rls
love…
the
mag
ic o
f sn
ow
glo
bes,
gli
tter
, sp
arkle
an
d ad
ora
ble
char
acte
rs.
This
has
N
ever
bef
ore
bee
n s
een
in
a c
ollec
tibl
e li
ne.
• W
isha
bles
red
efin
es t
he c
ollec
tibl
e ca
tego
ry a
nd
pro
vide
s a
new
way
of
collec
tin
g an
d pla
yin
g.
• W
isha
bles
tap
s in
to w
hat
reso
nat
es w
ith
girl
s –
the
emoti
on
al n
eed/
desi
re t
o w
ish
and
drea
m,
collec
t an
d sh
are,
an
d se
cret
s to
o.
• W
isha
bles
pro
vide
s en
dles
s poss
ibil
itie
s fo
r n
ew c
hara
cter
s &
collec
tion
s plu
s li
ne
exte
nsi
on
s an
d li
cen
sin
g th
at w
ill
con
tin
ue t
o b
uild
an
d su
stai
n t
he f
ren
zy a
nd
craz
e.
• W
isha
bles
is
a li
fest
yle
bran
d w
ith
an o
wn
able
look a
nd
posi
tion
ing
that
ex
ten
ds b
eyon
d co
llec
tibl
es p
rovi
din
g an
opport
unit
y to
mak
e a
big
stat
emen
t at
ret
ail.
©2013&Sparkle&&&&Confiden3al&
EXHIBIT 1 49
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 49 of 51 Page ID #:49
©2013&Sparkle&&&&Confiden3al&
May
all
YOUR
wish
es c
ome
true
.�
EXHIBIT 1 50
Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 50 of 51 Page ID #:50