Posts Tagged: "hasbro"

Hasbro’s recent application to trademark the scent of Play-Doh is an example of how companies in the digital age market their products and protect their market share by using an complex intellectual property strategies. As more companies begin to implement nontraditional branding into their marketing strategies, they face legal uncertainties of how the law protects this form of intellectual property. Unfortunately, what qualifies as a legitimate scent mark remains opaque. This article will review the requirements of scent trademarks and discuss the complications associated with various aspects of these marks, including (1) the functionary doctrine; (2) the issue of scent subjectivity; (3) administrative and application difficulties; (4) the possibility of scent depletion; and (5) the uncertain benefits of scent trademarks.

The Trademark Manual of Examining Procedure (TMEP) provides some guidance on what an aroma needs to demonstrate before being registered, asserting that “the amount of evidence required to establish that a scent or fragrance functions as a mark is substantial.” To overcome the “substantial” threshold, an applicant must satisfy two conditions by establishing that the mark is (1) nonfunctional and (2) distinctive. An aroma that meets both of these requirements is eligible for registration on the Principal Register under §2(f) of the Latham Act, or on the Supplemental Register if the scent is nonfunctional but has not yet acquired distinctiveness. Hasbro is hoping that the scent of Play-Doh can be a source identifier for its modeling compound in the noses of consumers.

Unfortunately for Hasbro, not all of its activities in the mobile gaming business have been completely original, leaving the game developer open to legal challenges. In late October, it was reported that Hasbro was named as a defendant in a copyright infringement action filed by Turkey-based gaming developer Peak Games in the San Francisco courthouse of the U.S. District Court for the Northern District of California (N.D. Cal.). At the center of Peak Games’ complaint is Hasbro’s My Little Pony: Puzzle Party mobile game app, which Peak Games alleges is essentially a clone of that firm’s Toy Blast game.

Toy licensing is proving to be a major wealth-building tool for Hasbro as it strives for dominance in the toy industry. Last September, the company was awarded a merchandising contract through Disney Consumer Products to begin manufacturing dolls based on Walt Disney Co. (NYSE:DIS) entertainment properties like Frozen and Beauty and the Beast. Hasbro was able to wrest this contract from the control of Mattel, which may have earned as much as $500 million last year from sales of these toys, mainly on sales of Disney princess characters. Hasbro already had licenses in place to develop toys based upon Disney’s Star Wars, Jurassic World and X-Men franchises, each of which has either released or is soon releasing major motion pictures.