Jakks Pacific, Inc., and NantWorks, LLC, announced that they have signed a letter of intent to create a joint venture to develop, market, and sell next generation toys incorporating NantWorks’ proprietary image recognition technology. The new venture will be named DreamPlay Toys.

JAKKS Pacific will begin transforming its product line to incorporate the new image recognition technology, and will present the first examples at the International Toy Fair in Los Angelos in October. Children will be able to “activate” toys, and interact with them using smart phones or tablet devices in their homes and in stores. The NantWorks platform enables instant connections between physical toys, video, posters, books, games, and all other forms of media.

NantWorks will link Jakks’ toy products to content and animation on mobile devices through the image recognition platform, and JAKKS will have the exclusive right to arrange for partnerships with other toy companies to make the platform available to them in the development, sale, and marketing of their toy products. JAKKS and NantWorks will have a profit sharing arrangement for these third-party toy relationships.

This post was originally written by Sierra McCleary-Harris and published by ToyBook.com. For more news, visit www.toybook.com, follow The Toy Book on Twitter, and like The Toy Book on Facebook. The Toy Book is a bimonthly trade magazine covering the toy industry, published by Adventure Publishing Group.