by STEPHANIE POTTICK, ESQ., Pottick Law PC & Protect for Success
I consulted with my Magic 8 Ball™* (*No affiliation with Mattel) and believe these will be some of the top legal trends for the toy industry to look out for in 2024.
1. Artificial intelligence (AI) will continue to dominate, with toy companies using AI for help with everything from content creation to making videos — and, yes, even with inventions. But remember that AI has an important intersection with intellectual property (IP): AI-generated content is not copyright protectable and may even infringe on someone else’s rights. (For more information, check out my article in The Toy Book’s 2023 Innovation & STEAM issue on legal tips to keep in mind when working with AI-generated content.)
2. Legal compliance with privacy issues related to internet-connected, educational, and interactive toys will continue to be of utmost importance for toymakers. We’re not talking about M3GAN dolls that come to life (not yet, anyway), but toys that talk, listen, and interact with kids. These toys must comply with all applicable laws. The sticky part is that laws are always changing, so it is important to stay updated and current and understand laws are location-specific for where you will be selling your products (e.g. the U.S. vs. the EU, etc.).
3. The industry can expect more consolidation with companies looking to either expand their footprint or add complementary product lines (Think: Spin Master buying Melissa & Doug, SolidRoots, and HEXBUG last year), creating opportunities for those target companies to create and protect their IP or license known brands to give themselves a competitive edge. Is your IP protected this year?
4. Creative partnerships and licensing should continue to make us say “Wow!” (or in some cases, scratch our heads). Of course, movie and TV merch licenses are staples of our industry, but I’m talking about duos like Crocs x Hershey’s shoes, Loungefly x McDonald’s bags, Dolly Parton x Duncan Hines baking mixes. Collaborations are only limited by one’s imagination, and I’m pretty sure 2024 will bring us more unique pairings. And don’t forget about video games like Five Nights at Freddy’s and Super Mario Bros.
– Stephanie Pottick, Esq.
“Not every instance of infringement will be easy to eradicate … How far should a brand owner go when enforcing IP? There’s a fine balance when deciding whether or not to pursue legal action … Circumstances matter.”
5. Counterfeits, copycats, and infringement are going to continue to create headaches for brand owners, especially when it comes to enforcement. While online marketplaces like Amazon and Etsy have takedown policies to help valid IP owners enforce their rights (Remember, protecting your IP is key!), not every instance of infringement will be easy to eradicate. And, of course, how far should a brand owner go when enforcing IP? There’s a fine balance when deciding whether or not to pursue legal action. Think of the Times Square Elmo (Is it worth Sesame Workshop’s trouble?) or country singer Luke Combs’ superfan who was recently sued (Spoiler alert: Combs apologized.). Circumstances matter.
I’d love to know what you think. Are there any legal trends on your 2024 horizon that we missed?
*Disclaimer: This article is for informational purposes only and not intended as legal advice.
This article was originally published in the February 2024 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
