Hasbro ordered to pay $73M in license agreement battle
BLOOMBERG FILE PHOTO/MICHAEL SPRINGER
PAWTUCKET TOYMAKER HASBRO INC. must pay $72.9 million in royalties and damages to Atlanta-based Johnson Research & Development Co., one of Hasbro's licensors. Hasbro said Thursday it "strongly disagrees" with the arbitrator's ruling and is considering an appeal.
PAWTUCKET – Hasbro Inc. will pay $72.9 million in royalties to Johnson Research & Development Co., the licensor of its line of Nerf guns, after an arbitration hearing over the terms of a license agreement between the two companies.
Atlanta-based Johnson Research – the inventor licensor of Hasbro’s Nerf and Super Soaker product lines – requested arbitration of the case in February, claiming the license agreement required Hasbro to pay royalties on toys based on the appearance of the Nerf products manufactured using technology licensed from Johnson Research.
The $72.9 million awarded to Johnson Research includes royalties and damages for Nerf products sold between 2007 and 2012, as well as interest, fees and expenses.
Johnson Research has a separate case currently pending in federal court in Atlanta seeking royalties from Hasbro’s line of Super Soaker products.
In a press release Thursday, Hasbro said it “strongly disagrees” with the arbitrator’s ruling and is considering “all possible appeals and challenges to the award.” Hasbro expects to take an additional charge to its third-quarter earnings as a result of the $72.9 million payout, the company said.
In other news, Hasbro earned the top spot among companies with between 5,000 and 20,000 employees in Greatist’s “46 Healthiest Companies to Work For” list.
The award acknowledges Hasbro’s “fun” culture and employee health offerings, which include onsite fitness centers, blood drives and health risk assessments, in addition to more unorthodox features such as a Candy Land-themed “healthy steps path” at the toy manufacturer’s Rhode Island offices, office yoga and meditation workshops, and participation in the “ShapeUp RI” challenge.
“We were thrilled to receive Greatist’s top ranking in our category,” said Dolph Johnson, Hasbro’s executive vice president and chief human resources officer. “The Hasbro Wellness Team, part of our Hasbro Employee Network, takes a strategic approach to wellness, focusing on the whole employee and is always looking for new ways to keep wellness top of mind.”
Estate and Corporate Income Taxes are changing next year, and business owners and executives should know the details. The PBN Summit on November 6th will provide those details and more - including how much Obamacare's Employer Mandate could cost.
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.