DIC Files $20 Million Lawsuit Against Troll Company

September 14, 2020

DIC Entertainment filed a lawsuit against Troll Company in federal court in Los Angeles, alleging claims of fraud in the inducement and negligent misrepresentation in connection with two TC brands that DIC licensed from TC— the Good Luck Troll, a 1950s-era troll doll created in Denmark and the Trollz, a modernized version of the Good Luck Troll that was created by DIC in 2003.

DIC’s complaint alleges that, pursuant to the terms of the

licensing

agreements, DIC successfully created, developed, and marketed the Trollz, simultaneously attempting to reinvigorate sales of the Good Luck Troll. Before entering into the licensing agreements, however, DIC alleges that it expressed concern about the sale of counterfeit Good Luck Trolls and other infringing products, since such knock-off products threatened to undermine the value of the both the Classic Trolls and the Trollz.

In response, DIC alleges, TC repeatedly assured DIC that TC had been vigilant in stamping out any counterfeits and other infringing

products and, indeed, expressly represented and warranted that, at the time the parties entered into the licensing agreements, TC was not aware of any infringement of the Good Luck Trolls.

DIC alleges that, at the time that TC made these representations to DIC, TC knew that the Good Luck Troll was the subject of widespread infringement, with unauthorized sales of counterfeit trolls persisting on a global scale. DIC alleges that, in reliance on TC’s fraud, DIC devoted years of painstaking effort and 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.

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

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