INTRODUCTION - Lego

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INTRODUCTIONRights Worth DefendingParasitic copying of original designs andproducts is a growing problem, whetheryou make watches, clothes, medicalproducts – or toys.Insufficient protection of product rights worksto the disadvantage of manufacturers whoinvest heavily in product development,product safety, quality control andmarketing.Copying makes it difficult for consumers tochoose on an informed basis.To protect consumers against beingmisled and to ensure that it continues tobe profitable for manufacturers to develop,make and market quality products, it isbecoming ever more important to establishworldwide regulations on protectionof intellectual property rights. Equallyimportant are routines for informing ourcustomers and consumers of how theycan make sure they are choosing thegenuine product.These are the reasons underlying theLEGO Group’s decision to produce thisbrochure. It explains what we are doingto protect our products and trademarks,why we do so and for what reasons webelieve it important to avoid the risk ofour products’ identities being diluted. Thebrochure also explains what we believeshould be done on the legislative side tostrengthen protection of consumers’ andmanufacturers’ rights alike.2TrademarkThe typical function of a trademark isto identify a given product with itsmanufacturer. Trademarks consist ofnames, words, word combinations,devices etc. Sometimes a product shapecan qualify as a trademark. The protectionagainst identical or confusingly similartrademarks in principle lasts forever.PatentA patent grants a time-limited protectionfor new inventions, e.g. new technicaldevelopments.DesignA design registration grants a time-limitedprotection for new designs, e.g. newproduct shapes. Sometimes designs areprotected without registration.CopyrightLiterature and certain artistic works areautomatically protected against copyingfor a considerable period of time, typicallyfor 70 years after the death of the personwho created them.Unfair Competition LawsIn cases when patent, design andtrademark protection may not apply, andthe overall presentation of a rival productis clearly designed to induce consumerassociation with an original product andto mislead as to the origin of the rivalproduct, the remedy is found under unfaircompetition / passing off laws. 2018 The LEGO Group All rights reserved date 01.11.18

HISTORYThe LEGO Brick / Toy of the CenturyOn the verge of the 21st Century, the LEGO Brick was voted “Toy of the Century”, firstby Fortune Magazine, later by the BritishAssociation of Toy Retailers. When DanishCarpenter Ole Kirk Christiansen beganmaking wooden toys in 1932, he couldnot have foreseen the process he wassetting in motion. Today the LEGO Groupis among the largest toy companies interms of sales and its products are amongthe best-known and the most loved inthe world. The LEGO Group is dedicatedto delivering quality play experiencesand constantly seeking out new ways oflearning and being creative.LEGO System of PlayThe iconic LEGO brick was developedmore than 60 years ago. During the late1940s plastic bricks became part ofthe LEGO assortment and in 1955 theLEGO Group launched its revolutionary“LEGO System of Play” with the first “Playand Learn” concept which stressed theimportance of learning through play. Thisled to further development of the plasticbricks and in 1958 the LEGO brick waslaunched with its now classic knob-andtube coupling system. The famous 1958patent, the LEGO patent, concerns thetubes only.Inventing the WheelTo the LEGO Group this was only thestarting point for the LEGO System. In 1962the wheel was re-invented and experimentswith electric motors began. In 1966 the3first LEGO train with accompanying railsand a 4.5-volt motor for propulsion wasintroduced. The LEGO Technic range wasintroduced in 1977.Big Bricks for Small HandsAnother ground-breaking event occurredin the late 1960s: Instead of aimingat the broad target group “children”,LEGO products were split into age anddevelopment segments. LEGO DUPLO was launched to give the youngest childrena chance to play with LEGO products.LEGO DUPLO bricks are twice as big ineach dimension as ordinary LEGO bricksand are therefore easier for young handsto handle.LEGOLAND Parks on the MapIn 1968 the LEGO Group set up aLEGOLAND Park in Billund. It wouldbecome the most famous and living symbolof creativity and imagination from a child’sperspective. Seven additional LEGOLANDParkshave been opened since: in Windsor,England (1996), in California, USA (1999), inGünzburg, Germany (2002), in Florida, USA(2011), in Iskandar Puteri, Malaysia (2012), inDubai, UAE (2016), and in Nagoya, Japan(2017). A ninth LEGOLAND Park is set toopen in Goshen, New York, in 2020. In 2005the LEGO Group sold the Parks to MerlinEntertainments Group. The LEGOLANDtrademark is still owned by the LEGOGroup and continues to be used underlicense. The owners of the LEGO Group,KIRKBI A/S, owns approximately a third ofthe shares in Merlin Entertainments Group. 2018 The LEGO Group All rights reserved date 01.11.18

HISTORYLEGO EducationSince 1981 the LEGO Group has marketedproducts for schools. LEGO Educationproducts have been developed speciallyfor the educational sector and containmaterial for both teachers and pupils.Pupils get the opportunity to do their ownresearch, for example, into how causeand effect are related. When you learnby doing, you remember it better thanif someone simply tells you. This is thephilosophy behind LEGO Education’steaching concepts.Robot Technology for ChildrenThe 1990s was the decade in whichthe LEGO Group moved into robotics.Intelligence and behavior became well andtruly an integral part of the LEGO productrange. By integrating robot technologywith the LEGO building system, LEGOMINDSTORMS enabled children to createand program intelligent LEGO models. Thetechnology system was launched in 1998.In 2006, the second generation, LEGOMINDSTORMS NXT, was launched, and in2013 it was time for the third generation,LEGO MINDSTORMS EV3 – powered bythe EV3 Intelligent Brick. With the launchin 2017 of LEGO BOOST, the LEGO Groupintroduced coding to younger childrenthrough an easy-to-use, app-based codingenvironment. Where LEGO MINDSTORMSis based on the Technic brick platform,LEGO BOOST is mainly based on theSystem brick platform.4LicenceThe first LEGO Star Wars products weremarketed in 1999. This was the first timethe LEGO Group decided to license astory into the LEGO world and LEGO StarWars products have become an evergreenproduct line. Since then, several licensedLEGO products have been marketed, suchas Harry Potter , Disney , DC Comics Super Heroes and Jurassic World .DigitalisationThe LEGO Group currently operates onvarious electronic platforms through thewww.LEGO.com website, video games,apps and mobile games.The first LEGO computer game, LEGOIsland, was launched in 1997. It was thefirst serious move to place the LEGObrick in the digital world. In 2010 the LEGOGroup launched its first MMOG (MassivelyMultiplayer Online Game), LEGO Universe,and in 2011 its first so-called appcessory,LEGO Life of George, which was theworld’s first interactive game combiningreal, physical LEGO bricks with a mobileapp. In 2017 the LEGO Group truly broughtLEGO bricks to life with its augmentedreality app, LEGO AR-Studio , whichallows children to play with digital versionsof LEGO models in real-world scenesusing augmented reality.LEGO Life AppLEGO AppsThe LEGO BOOST RobotThe digital presence was further expandedin 2017 with the launch of LEGO Life, a safesocial network for children under 13. 2018 The LEGO Group All rights reserved date 01.11.18

HISTORY5MoviesWarner Brothers and the LEGO Groupannounced their plans to develop thefirst-ever feature film based on LEGO bricks and icons in 2009. Five years later,in 2014, THE LEGO MOVIE premiered.It was followed by THE LEGO BATMANMOVIE and THE LEGO NINJAGO MOVIE ,both in 2017. THE LEGO MOVIE 2 is set topremiere in 2019.LEGO House - Home of the BrickIn 2017 the LEGO Group opened a 12,000square metre experience house in Billund,Denmark. LEGO House, also known as“Home of the Brick”, is filled with 25 millionLEGO bricks ready to give LEGO fans of allages the ultimate LEGO experience.FACTS & FIGURESWhenmouldingLEGO elements the tolerance ofaccuracy is 4 my (0.004 mm).Approximately 75 billion LEGOelements are sold per year –in more than 140 countries.There are 915,103,765 differentways of combining six 8-studbricks of the same colour.One of the more than nine hundredmillion ways in which six 2x4 LEGOBricks of the same colour can becombined.LEGO House 6XThe LEGO House model 2018 The LEGO Group All rights reserved date 01.11.18

QUALITY AND SAFETYNo short-cuts in Quality or SafetyWe are as demanding in our quality,product safety and precision requirementsas we are about the creative possibilities.All LEGO elements are made in highprecision moulds and elements mademore than a generation ago still fit withthose made today.6Every LEGO element is extensively testedfor such durability qualities as breakingand clutch power, the latter measuredthrough the amount of force required toseparate two elements. All raw materialsare, of course, non-toxic and every elementis tested according to the highest safetystandards and rules. Building instructionsare precise and easily understood.Every LEGO element is extensivelytested for such durability qualities asbreaking and clutch power.FAIR OR UNFAIRFair Play or Unfair Competition?Legal rights as well as common regardfor fair play are increasingly violated bycopyists in their attempts to misleadconsumers by trading on the reputation ofwell-established products and trademarks.The LEGO Group actively opposes anymisuse that violates the protectiongranted under national and internationallegislation. We feel we have good reasonsto do so; one of the aims of such legislationis to guarantee to consumers that they arebuying the genuine, original product andnot an inferior copy. Generally, the LEGOGroup has focus on these major areas:1. Policing our Rights2. Misuse of Trademarks3. Misuse of Trademarks andCopyrighted Material on theInternet4. Attempted Associationwith the LEGO Group byUnrelated Parties5. Product Copying6. Licence and Co-Promotion 2018 The LEGO Group All rights reserved date 01.11.18

POLICING OUR RIGHTSCorrect use of our trademarks protectsour rights, whereas incorrect use leadsto dilution and eventually loss of rights.By following a simple set of rules we canall contribute to the protection of ourtrademarks.ALWAYS write our trademarks incapital letters.ALWAYS use a noun after thetrademark, e.g. LEGO toys,LEGO values.NEVER add a possessive “s”,plural “s” or hyphen, e.g. LEGO’sdesign, more LEGOs to playwith, LEGO-bricks.NEVER change or adjust thegraphical design of a trademark,e.g. change the colours or shapeof the LEGO logo.7In order to emphasize further the trademarkstatus we insert either the symbol (forregistered trademark) or the symbol (forpending/unregistered trademark).Furthermore, a legal line (an explanatorynote) is placed on all material. An exampleof a legal line is:LEGO, the LEGO logo and theMinifigure are trademarks of theLEGO Group.Copyright normally requires no registrationbut to prevent unauthorised copying itis important to use the internationallyaccepted notice comprising the symbol followed by the year in which the work wasfirst published, and the name of the ownerof the copyright. The following copyrightnotice is used on all materials just belowthe legal line, e.g. 20xx The LEGO Group.Trademarks and company names are twodifferent things. A trademark can be partof a company name or may even be thesame as a company name. This is the casein the LEGO Group. Most of our companieshave the word LEGO in their name.Please note that the symbol is NOT usedunder any circumstances in companynames such as e.g. the LEGO Group,LEGO System A/S, etc. 2018 The LEGO Group All rights reserved date 01.11.18

MISUSE OF TRADEMARKSProduct names, logos and product shapeswhich obviously imitate the LEGO Group’sregistered trademarks are frequently usedto mislead consumers into thinking thatthey are buying genuine LEGO products.Our policy is to protect, maintain anddefend our trademark rights in the bestpossible way. Therefore, the LEGO Grouphas established a number of clear rules forthe proper use of its trademarks.The most important asset of the LEGOGroup is the LEGO trademark. The LEGOtrademark was created in the early daysof the company in 1932 from the Danishwords “leg godt” meaning “play well”. TheLEGO trademark is registered in morethan 150 countries all over the world.The LEGO trademark is considereda famous trademark in a number ofjurisdictions. In some indicated in aregistration certificate or included on alist of famous trademarks, but most oftenconfirmed through decisions renderedin specific cases. It means that theLEGO trademark has the widest possibleprotection, i.e. for all goods and services,and that we should be able to preventothers from using the LEGO trademark,not just for toys, but for any goods.The LEGO Group is also the owner of awhole range of additional trademarks,including the LEGO logo, the minifigure,the basic brick and the knobs. It is acommon misunderstanding that the basicbrick and the knobs are not protectedas trademarks; even though they are notregistered for construction toys, they arestill registered for other toys and variousother goods.8The top box to the right shows some of thetrademarks of the LEGO Group. They arenot to be copied, depicted or used in anyway without the prior consent of the LEGOGroup.The bottom examples on the right areimitations of the LEGO logo made todeceive the buyer or to create a falseassociation with the LEGO Group. 2018 The LEGO Group All rights reserved date 01.11.18

MISUSE ON THE INTERNETMisuse of Trademarks and CopyrightedMaterial on the InternetImproper use of the LEGO trademarks maycause consumer confusion and lead to thedilution of such marks. We actively seekto prevent misuse of the LEGO trademarksand the LEGO Group’s copyrightedmaterial and any confusion as to whetherthe LEGO Group sponsors or authorizesunofficial and/or unlicensed sites.For this reason, certain guidelines havebeen developed to outline the properuse of the LEGO Group’s trademarks andcopyrighted material for non-commercialpurposes in domain names and websites.The LEGO Group’s trademarks andcopyrighted material may NEVER beused by unrelated third parties for theirown commercial or marketing purposes,unless formal permission or a writtenlicence has been granted by the LEGOGroup.Domain NamesUse of a LEGO trademark in a domain nameis an infringement of LEGO trademarkrights. Further to this, it is highly likelythat an observer will make the mistakenpresumption that the site is in some wayrelated to, sponsored or endorsed by theLEGO Group. As a consequence, LEGOtrademarks cannot be incorporated indomain names. This restriction applies toall registered LEGO trademarks, such asbut not limited to; LEGO, MINDSTORMS ,DUPLO , NINJAGO and LEGOLAND .9Use in Unofficial WebsitesThe protection of the reputation andgoodwill of the LEGO Group is a majorconcern when developing guidelines foruse of our trademarks for non-commercialpurposes in unofficial websites. For thisreason the red LEGO logo may NEVER beused on any unofficial website.The LEGO trademark may be used in anon-commercial manner to refer to LEGOproducts or elements which are shown ordiscussed on a website, as long as thetrademark is not unduly emphasized orused in a way that can lead an observerto mistakenly believe that the websiteis sponsored or authorized by the LEGOGroup. If the LEGO trademark is used atall, it must be used in accordance with therules described previously in this brochureunder “Policing our Rights”.Our own LEGO Life pages where the fans (primarily children) can participate in a community.Example of a website we believe is infringing. 2018 The LEGO Group All rights reserved date 01.11.18

MISUSE ON THE INTERNETThe LEGO Group owns copyrights to allof the building instructions, publicationsand photographs used in its catalogs,on its packages and websites. Copying,scanning and distributing these materialsin the internet would be an infringement ofthe LEGO Group’s copyrights.Nevertheless, we permit very limitedreproduction of our copyrighted materialonwebsitesfornon-commercialpurposes only, e.g. posting on a websiteto exchange information or making fair usecommentary). The copyrighted materialused should be unaltered and must belimited to extracts only, and it should neverbe given such prominence as to indicatesponsorship of the website by the LEGOGroup. The same rules and guidelinesapply to sites/domains belonging to fansof the LEGO brand.DisclaimersDisclaimers should be included in anynon-official site making use of any LEGOtrademarks and/or copyrighted materialin order to ensure that the site is notmistakenly seen as affiliated, authorized orsponsored by the LEGO Group.For any LEGO trademark appearingon a page, the following disclaimer isappropriate:10The disclaimer should include a referenceto all LEGO trademarks that are includedon the site. For example, if a reference ismade on a web site to the LEGO DUPLO trademark, DUPLO should also be includedin the disclaimer.For any copyrighted material used,the following copyright line should beincluded:1 20xx The LEGO Group.All Rights Reserved.1This copyright line must be includedunder any copyrighted material and theyear used must be the year of actualpublication of the material displayed.Finally, it must be observed that adisclaimer will not undo an impropertrademark or copyright use.4anded ba ckod uc tfe about Thisom /prBACKW.LEGO.cGo to WW ur short FE EDance to winyochausregivt foze.LEGO seLEGO pria coolTerms & Conditions �奖品Erzähle uns aufwww.LEGO.com/productfeedbackRends-toi twas über die Erfahrungen, die du mitdiesem LEGO Set gemacht hast, undsichere dir die Chance auf einen coolenLEGO Preis!et donne-nous quelques commentaires surce produit LEGO pour avoir une chancede gagner un prix LEGO !y envíanos tu opinión acerca de este setLEGO . ¡Participarás en el sorteo de unpremio LEGO!Voir Conditions GénéralesTérminos y Condiciones aplicablesEs gelten die TeilnahmebedingungenLEGO, the LEGO logo and the FRIENDS logo are trademarks of the LEGO Group. 2018 The LEGO Group.60LEGO is a trademark of the LEGOGroup, which does not sponsor,authorize or endorse this web site.给出关于此乐高 �高奖品《条款及条件》适用6224692An example of the legal line, including the copyright line.LEGO, the LEGO logo and the Friends logo are trademarks of the LEGO Group. 2018 The LEGO Group. 2018 The LEGO Group All rights reserved date 01.11.18

ATTEMPTED ASSOCIATIONAttempted Association with the LEGOGroup by Unrelated PartiesTime and again, we see our products andtrademarks used in the marketing of totallyunrelated products and services, givingthe impression that the LEGO Group issomehow involved in or associated withsuch business activities or services, whichwe are actually not.When used in these unrelated settings, beit in printed material or on the internet, thevalue of our trademarks may be diminishedand the identities of our company, ourproducts and our trademarks can losetheir distinctiveness.The LEGO Group is a toy company whichhas kept children all over the worldoccupied in creative, enjoyable play formany decades. As such, we now enjoya tremendous amount of goodwill. Ourname, the “red square” LEGO logo, theminifigure, the brick and the knobs areinstantly identifiable, and the generalpublic associates any products bearingour trademarks and copyrights with theLEGO Group. Research has even shownthat consumers tend to identify distinctlydifferent types of toys (and products ingeneral) as LEGO products when themanufacturer chooses circular knobsfor connecting (or purely decorational)purposes.The attempts of others to gain areputation by associating their unrelated,unauthorized or unlicensed products11with the LEGO Group may enhance theircommercial prospects, but if used withoutour permission, may constitute trademarkor copyright infringement.Therefore, we emphasize that unrelatedthird parties are not permitted to usetrademarks or copyrights of the LEGOGroup for their own commercial ormarketing purposes, unless formalpermission or a written licence has beengranted by the LEGO Group. This includesthe use of the LEGO logo, the minifigure,the brick and the knobs.For these same reasons, the LEGO Grouphas implemented a general policy againstthe use of our name, products and logosby business associates, e.g. suppliers, intheir own advertising.In the past several years, more and moreunauthorized books and publicationshave been written about LEGO productsand the history of the LEGO Group. Theabove also applies to such unauthorizedbooks, e.g. only in books which have beenofficially endorsed and/or licensed by theLEGO Group is it permitted to use theLEGO logo. Official endorsement comesthrough a formal license agreement withthe LEGO Group.What are LEGO toy elements doing in thesesettings? Nothing at all. When a productoffered has nothing to do with LEGO bricks,we insist on being left out. 2018 The LEGO Group All rights reserved date 01.11.18

PRODUCT COPYING12The LEGO Group owns copyrights to theminifigure, all of the building instructions,all illustrations and photographs used onits packaging, and its marketing material.A large proportion of the approximately3,900 different elements developed forthe LEGO product programmes areprotected by the laws of a substantialnumber of countries. In some countriesthe minifigure, the brick and the knobs areprotected as trademarks.child receiving a box of building elementswill almost certainly add these to thecollection of LEGO elements it already hasand experience that the new buy does notlive up to the quality and play value knownfrom the LEGO elements. Few look-alikesare made in accordance with the qualityand safety standards met by the genuineLEGO products.To the buyer – whether an adult or achild – a LEGO building set consists ofbuilding elements, the packaging with itsillustrations and photographs and detailedbuilding instructions. We strictly opposecopying and manufacture of close lookalikes of the minifigure, our elements,packaging, building instructions andmarketing material, and we do what we canto stop copycats. We do so to safeguardour reputation as well as the consumer’sability to choose on an informed basis.Some copyists take the final step by simplyreproducing the LEGO packaging.As shown in this brochure, the intention tocopy products, packaging and trademarksseems to know no limits. The aim of manycopyists is to induce a mis-conceptionas to the origin of their product and thusconfuse the consumer and to trade onthe reputation the LEGO Group has builtup over decades. The LEGO logo is theconsumers’ guarantee that they havebought a genuine LEGO product.Even less tangible is the process knownas post sale confusion. For example, the 2018 The LEGO Group All rights reserved date 01.11.18

LICENCE AND CO – PROMOTIONThe LEGO Group cooperates with othercompanies that are known and respectedleaders in their line of business. This isdone both by granting licences and inco-promotional initiatives. It only happenswhen both parties stand to benefit from13the effort and after carefully choosing“playmates” whose products or servicesare suitable for a LEGO licence productor for co-promotion with LEGO products.The examples shown on this page aredifferent licence products from books toclothes. 2018 The LEGO Group All rights reserved date 01.11.18

CONCLUSIONFair PlayNational patent, design and trademarklaws – not to mention the observance ofsuch laws and associated regulations –differ quite substantially from country tocountry. Laws against unfair competitiondo not even exist in a number of countries.Lately, the absence of regulations againstcounterfeiting, trademark infringementsetc. has confronted the owners of originalrights with growing problems from copyproducers, especially in some Asianand Eastern European countries. Sincethe lack of regulations clearly invitescounterfeiting and copy production, theLEGO Group naturally welcomes all stepstaken to introduce product and trademarkprotection into national legislation. We alsosupport the regulation of the EuropeanUnion on the seizure of counterfeitproducts and the efforts of the WorldIntellectual Property Organization (WIPO)and the European Union to strengthen andharmonize the relevant laws.Even in highly developed markets, thelaws on protection of intellectual propertyhave loopholes and some defects, andobtaining protection against copying oftrademarks and products is all too oftena difficult, time-consuming and expensiveprocess. The LEGO Group therefore14cooperates with other manufacturers ofbranded products on an internationalbasis with the goal of strengthening,harmonizing and simplifying internationallegislation and enforcement.We believe that any original product designshould be protected against copying andthat designs and trademarks should notbe used in unrelated settings without theowner’s consent. We also believe that itshould be possible to stop such copyingand other infringements easily. Each year,our legal department handles hundredsof incidents involving infringement of ourrights and regularly brings infringers tocourt.We want to make sure that consumerscan have confidence that anythingbearing the LEGO Group’s trademarks orcharacteristic product features is a LEGO brand product. This is in the best interestnot only of our company but also ofconsumers – primarily children – all overthe world.ALL WE ASK IS THAT THERESHOULD BE FAIR PLAY.LEGO, the LEGO logo, DUPLO, NINJAGO, MINDSTORMS, LEGOLAND, the Brick and Knobconfigurations and the Minifigure are trademarks of the LEGO Group. 2018 The LEGO Group. 2018 The LEGO Group All rights reserved date 01.11.18

our rights, whereas incorrect use leads to dilution and eventually loss of rights. By following a simple set of rules we can all contribute to the protection of our trademarks. n oI rder to emphaszie further the trademark status we insert either the symbol (for registered trademark) or the symbol (for pending/unregistered trademark).