my little pony

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 COMPLAINT AND DEMAND FOR JURY TRIAL LISA BORODKIN, ATTORNEY AT LAW LISA J. BORODKIN, ESQ., STATE BAR NO. 196412 LISA@LISABORODKIN.COM 2009 CLARK LANE B REDONDO BEACH, CALIFORNIA 90278 TELEPHONE: (323) 337-7933 KING, HOLMES, PATERNO & BERLINER, LLP HOWARD E. KING, ESQ., STATE BAR NO. 77012 KING@KHPBLAW.COM 1900 AVENUE OF THE STARS, 25 TH FLOOR LOS ANGELES, CALIFORNIA 90067-4506 TELEPHONE: (310) 282-8989 FACSIMILE: (310) 282-8903 Attorneys for Plaintiff Elinor Shapiro UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION ELINOR SHAPIRO, Plaintiff, v. HASBRO, INC., and DOES ONE to TEN, Defendants. CASE NO. COMPLAINT FOR (1) BREACH OF CONTRACT (2) BREACH OF IMPLIED COVENANT (3) MISAPPROPRIATION OF TRADE SECRETS (4) COPYRIGHT INFRINGEMENT JURY TRIAL DEMANDED Plaintiff Elinor Shapiro (“Shapiro”) alleges as follows: THE NATURE OF THIS ACTION 1. Shapiro, a proven toy inventor and marketing expert known for creating and marketing collectible toys in the small doll category, was solicited by Defendant Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 1 of 51 Page ID #:1

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1 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN, ATTORNEY AT LAW LISA J. BORODKIN, ESQ., STATE BAR NO. 196412 [email protected] 2009 CLARK LANE B REDONDO BEACH, CALIFORNIA 90278 TELEPHONE: (323) 337-7933 KING, HOLMES, PATERNO & BERLINER, LLP HOWARD E. KING, ESQ., STATE BAR NO. 77012 [email protected] 1900 AVENUE OF THE STARS, 25TH FLOOR LOS ANGELES, CALIFORNIA 90067-4506 TELEPHONE: (310) 282-8989 FACSIMILE: (310) 282-8903 Attorneys for Plaintiff Elinor Shapiro

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

ELINOR SHAPIRO,

Plaintiff,

v.

HASBRO, INC., and DOES ONE to

TEN,

Defendants.

CASE NO. COMPLAINT FOR (1) BREACH OF CONTRACT (2) BREACH OF IMPLIED COVENANT (3) MISAPPROPRIATION OF TRADE SECRETS (4) COPYRIGHT INFRINGEMENT JURY TRIAL DEMANDED

Plaintiff Elinor Shapiro (“Shapiro”) alleges as follows:

THE NATURE OF THIS ACTION

1. Shapiro, a proven toy inventor and marketing expert known for creating

and marketing collectible toys in the small doll category, was solicited by Defendant

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 1 of 51 Page ID #:1

2:15-cv-2964

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4354.061/879088.1 2 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

Hasbro, Inc. (“Hasbro”) to submit original materials for use with Hasbro’s existing

properties under an express Agreement to Hold Confidential (“AHC”).

2. Hasbro initiated Shapiro’s submission by a November 2, 2012 email

that described in detail the types of information Hasbro was seeking with phrases

such as “excitement, low cost innovations,” “never before seen mechanisms,” “new

ways to play,” and “newest and hottest girls trend” specifically in reference to

Hasbro’s existing properties including Littlest Pet Shop and My Little Pony.

3. Hasbro received Shapiro’s submissions at an April 25, 2013 meeting in

Santa Monica, California that Hasbro arranged as part of its West Coast Inventor

Tour. Hasbro thereafter asked Shapiro to send her slideshow and three-dimensional

prototypes to its headquarters in Pawtucket, Rhode Island to study for three months.

4. Hasbro thereafter took confidential information that Shapiro presented

under the AHC and used it without compensating Shapiro. A view of one of

Hasbro’s My Little Pony Cutie Mark Magic Water Cuties toys (an “Accused Toy”)

released subsequent to April 25, 2013 is shown at right in the below image, side-by-

side with one of Shapiro’s prototypes submitted under the AHC.

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 2 of 51 Page ID #:2

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4354.061/879088.1 3 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

5. A second view of the Accused Toy (shown below, at left) after it has

been shaken shows clearly that the glitter floating inside the Accused Toy is in a

symbolic shape (in this case, diamond-shaped). In the image below, the Accused

Toy is shown, with its diamond-shaped glitter, side-by-side with Shapiro’s

prototype, which together with Shapiro’s slideshow, expressed that each character in

Shapiro’s submission “has a special symbol, and symbol is floating inside that

character Æ further encouraging collectability.”

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 3 of 51 Page ID #:3

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4354.061/879088.1 4 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

6. The “excitement, low-cost innovation,” “never-before-seen

mechanism,” “new way to play,” and “newest and hottest girls trend” shown in the

foregoing pictures were not the only confidential information that Hasbro took from

Shapiro under the AHC. Despite this, Hasbro does not want to pay Shapiro for the

information it took under the AHC.

JURISDICTION AND VENUE

7. Jurisdiction is proper pursuant to 28 U.S.C. §§ 1332(a)(1) because the

Court has diversity jurisdiction over this action. The action includes claims solely

between a citizen of the State of California and a citizen of the State of Rhode

Island, and the amount in controversy exceeds, exclusive of interest and costs, the

sum of Seventy-Five Thousand Dollars ($75,000.00). Jurisdiction is also proper

pursuant to 28 U.S.C. §§ 1331 and 1338(a) because this action includes a claim

arising under the provisions of the Copyright Act of the United States, as amended,

17 U.S.C. § 101 et seq., and is for infringement of copyrights registered in the

Copyright Office of the United States.

8. Venue is proper in this judicial district pursuant to 28 U.S.C. §

1391(b)(2) and (d) in that Defendant or its agents may be found in this district, and a

substantial number of the acts or omissions giving rise to Plaintiff’s claim occurred

in this district.

THE PARTIES

9. Shapiro is a professional toy designer, inventor, consultant and former

toy company executive, and is a citizen of the City of Los Angeles, State of

California, with her principal place of business in Los Angeles, California.

10. Shapiro is informed and believes and thereupon alleges that Defendant

Hasbro is a company organized and existing under the laws of Rhode Island, and a

citizen of the State of Rhode Island with its principal place of business at 1027

Newport Avenue, Pawtucket, Rhode Island, and a registered agent for service of

process in California at 818 West Seventh Street, 2nd Floor, Los Angeles, California

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 4 of 51 Page ID #:4

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4354.061/879088.1 5 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

90017.

11. Shapiro is informed and believes and thereupon alleges that the nerve

center of Hasbro’s business is in Rhode Island, because that is where its home office

is located, where the majority of its executive and administrative functions are

performed, and where its high-level officers direct, control, and coordinate the bulk

of Hasbro’s day-to-day activities.

12. Hasbro is subject to the general and specific jurisdiction of this Court

pursuant to California Code of Civil Procedure § 410.10 and Rule 4 of the Federal

Rules of Civil Procedure. Hasbro transacts or has transacted business within the

Central District of California.

13. Shapiro is informed and believes and thereupon alleges that Hasbro has

systematic and continuous contacts with California, including by soliciting and

receiving orders from stores with locations in California, including Kmart

Corporation, Target Corporation, Toys “R” Us, Inc., the Walgreen Company, and

Wal-Mart Stores, Inc., and maintaining a business unit that focuses on girls’ toys in

Burbank, California.

14. Hasbro is subject to the specific jurisdiction of this Court, including in

that a substantial number of the transactions and occurrences in this action occurred

in California; Hasbro first received the confidential information under the AHC in

Santa Monica, California; Hasbro requested that Shapiro send the submission from

Los Angeles, California to Pawtucket, Rhode Island; and Hasbro breached the AHC

in Los Angeles, California, including by selling the Accused Toys in this District.

15. The true names and capacities of Defendants named herein as DOES

ONE through TEN, whether individual, corporate, associate or otherwise, are

presently unknown to Shapiro, who therefore sues these Defendants by such

fictitious names. Shapiro will amend her complaint to substitute such true names

and capacities when they have been ascertained. Shapiro is informed and believes

and thereupon alleges that each of the fictitiously named Defendants is responsible

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 5 of 51 Page ID #:5

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4354.061/879088.1 6 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

in some manner for the occurrences and damages alleged herein. Shapiro is

informed and believes and thereupon alleges that each Defendant herein is now, and

at all times relevant thereto was, the agent, employee, servant or alter ego of each of

the other Defendants herein and, in doing the things hereafter alleged, was acting

within the scope of such employment, agency, servitude or alter ego relationship.

16. Shapiro is informed and believes and on that basis allege that each of

the DOES has participated in or benefitted from the conduct of the named defendant

or is otherwise legally responsible in some manner for the matters alleged in this

complaint.

FACTS COMMON TO ALL CLAIMS

17. Shapiro is an internationally known toy inventor, consultant and former

executive for major toy companies Mattel, Inc. and the Walt Disney Company.

18. Since at least 1988, Shapiro has worked in the toy industry. Her

professional specialty is to create original toy concepts, stories, marketing and

packaging, particularly for small doll lines and marketing to girls.

19. Shapiro has worked on iconic doll lines for girls and small children,

including the Cabbage Patch Kids, Barbie, Polly Pocket, and dolls based on the

Disney properties, including Disney Princess, Disney Fairies, and Tinker Bell.

20. Shapiro was employed as a marketing executive for Mattel, Inc. from

1988 to 1995 managing multi-million dollar doll lines.

21. Shapiro was employed at the Walt Disney Company from 1995 to

1997, and thereafter as an independent consultant.

22. Shapiro has been retained as a consultant expressly to conceive original

story concepts, marketing materials and packaging copy for original and pre-

existing toy properties, including for the Disney Fairies, Tinker Bell, and Sofia the

First in 2013 and 2014.

23. Shapiro is regarded as a marketing expert on how girls play with toys

and games, and has been hired to create, market, write and design aspects of toys to

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4354.061/879088.1 7 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

appeal to girls, including video and interactive games based on pre-existing Disney

properties such as “Pocahontas” and “101 Dalmatians.”

24. Shapiro has managed other global, multi-million dollar toy lines and

brands including Nickelodeon toys and McDonald’s toys.

25. Shapiro has won Mattel, Inc.’s company awards for her work in

product development.

26. As a creative and marketing consultant since 1997, Shapiro’s clients

have included toy companies Mattel, Inc., The Walt Disney Company, MGA

Entertainment Inc., the Jim Henson Company, Playmates Toys, Inc., JAKKS

Pacific, Inc., Nakajima USA, Inc., Activision Blizzard, Inc., Wild Planet Toys, Inc.,

Diggin Active, Inc., and Shains, and other brands seeking to enter the toy market

such as Skechers USA Inc. and United Talent Agency.

27. Shapiro has been creating integrated toy concepts, marketing and

packaging proposals for license and direct manufacture since 2001.

28. In 2001, Shapiro entered into a benchmark transaction with Mattel, Inc.

demonstrating a concrete market for, and means of valuation of, a license of her

work, namely a 2001 royalty license agreement with Mattel, Inc. for an original

small doll line, which was sold at retailers including Toys “R” Us and Kmart, under

the name “Little Sparklin’ Clouds.”

29. In the toy industry, “play pattern” refers to how a consumer plays with

and interacts with a toy or product.

30. Shapiro is recognized, and regularly engaged professionally, for her

expertise in understanding girls’ and small children’s “play patterns” in doll lines.

31. Conventional wisdom in the toy industry is that story and character are

key aspects of marketing to girls, and that “play patterns” engage traits specific to

narrative stories that engage girls, such as personality traits, iconography and

character stories.

32. Shapiro is also recognized, and regularly engaged professionally, for

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4354.061/879088.1 8 COMPLAINT AND DEMAND FOR JURY TRIAL

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LAW

her expertise in marketing mechanics, new and hot girls’ trends, and how dolls

should be presented at retail.

PLAINTIFF’S WORKS

33. Shapiro created in or about 2012 an original line of animal-shaped

small dolls named “Wishables” incorporating, inter alia, the magical play of a snow

globe into a character, doll or pet, and the novel inventions of using shaped glitter as

an iconography of unique symbols associated with character traits within the doll

and repeated on the packaging, building on the emerging trend of “snow globes.”

34. Shapiro’s original slideshow presentation, sculptural prototypes, and

in-person demonstration, together with all information contained therein, including

but not limited to idea, concept, design, story, features, advertising, focus group

research, news stories, trend analysis, marketing mock-ups, packaging, testimonials,

proposed integration with Hasbro existing properties, and licensing examples are

referred to hereafter collectively as the “Wishables Submission.”

35. A true and correct copy of the confidential slideshow presentation for

the Wishables Submission that Shapiro submitted to Hasbro under the AHC is

attached as Exhibit “1.”

36. A photograph showing three sculptures for the Wishables Submission

that Shapiro presented to Hasbro under the AHC is attached as Exhibit “2.”

37. The United States Copyright Office granted Shapiro Copyright

Registration Number VAu 1-194-503 in work entitled “Wishables” described as

“text, photograph(s), 2-D artwork, sculpture” based on Shapiro’s submission of

Exhibits “1” and “2” as specimens.

38. The United States Copyright Office granted Shapiro Copyright

Registration Number VAu 1-195-749 in work entitled “Wishables Models”

described as “sculpture” based on Shapiro’s submission of Exhibit “2” as a

specimen.

39. A photograph of five of the sculptures for the Wishables Submission is

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4354.061/879088.1 9 COMPLAINT AND DEMAND FOR JURY TRIAL

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LAW

included as page 8 of Exhibit “1.”

40. A photograph of a sculpture Shapiro created for the April 25, 2013

meeting is below, showing an application of the Wishables Submission (at right) to

Hasbro’s existing Littlest Pet Shop property (expressing the symbol floating inside

the character) with a Hasbro Littlest Pet Shop doll then being sold (at left):

41. Shapiro took all reasonable precautions to keep the Wishables

Submission confidential, maintained materials related to the Wishables Submissions

in password-protected computers and secure physical locations at all times, and

required recipients of the information to sign non-disclosure agreements every time

that she presented them, beginning on or about June 11, 2012.

42. Shapiro’s original inventions and confidential information, in the

Wishables Submission included, but were not limited to:

a. A line of small dolls in eight different, collectible, animal

characters with a play pattern similar to familiar “snow globes” but instead of

being hemispheric or globe-shaped, the entire figure of the animal would be

in clear or transparent material, in which glitter would circulate in liquid when

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4354.061/879088.1 10 COMPLAINT AND DEMAND FOR JURY TRIAL

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LAW

the doll was moved;

b. Instead of using white flakes simulating snow (as in conventional

“snow globes”) to use glitter shaped in a specific symbol that would swirl

around in the liquid inside the animal character;

c. Instead of mixing all shapes and colors of glitter together and

using the same mixture in all animal characters in the line, to differentiate the

animal characters and drive collectability by using a unique combination of a

shape and color of glitter in each of the eight animal characters in the line;

d. To associate each of the eight animal characters with its own

unique symbol, that would carry through the character’s narrative,

personality, special empowering personality, and on the packaging, further

appealing to girls’ play patterns, sending positive messages to girls, and

driving collectability;

e. Specifically, as expressed in the slideshow in the Wishables

Submission, a special iconography associated with the animal character, its

narrative and personality, and the symbol floating inside, namely: (1) Winnie

the pony – competition – trophy; (2) Sweety the penguin – love- heart; (3)

Beaux the puppy – friendship – paw print; (4) Moonzy the fawn – dreams –

moon; (5) Babesy the bunny – going places – flower; (6) Bettina Lily the

chick – wisdom – star; (7) Riskers the kitten – courage - happy face; and (8)

Sunnyside the hamster – sunny days - sun.

f. To repeat the symbol floating inside the character on the

packaging and advertising for the toy, further reinforcing the branding and

driving collectability;

g. Sculptures using Hello Kitty and Littlest Pet Shop showing how

the play mechanics, narrative symbol, packaging and branding could be

applied to existing properties or licensed;

h. Focus group research from girls in 2012 and 2013 collecting

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LAW

comments from actual girls about what they liked about the toys, story and

presentation;

i. Trend analysis from the New York Times and statements from

the TSA indicating that snow globes were predicted as a new and hot trend in

later 2012; and

j. The integration of all the foregoing elements.

43. A custom and practice in the toy industry is for inventors to model

aspects of new toys in “kit-bash” form, meaning, to show their features and

functions using toy and non-toy parts, and to present such “kit-bash” models in

combination with slideshows, and live demonstrations by the inventor.

44. Shapiro ingeniously solved the problem of how to visually express that

the Wishables Submission would have a play feature similar to “snow globes” by

sculpting original molds of different animal characters, casting the animal characters

with a translucent, colored resin, and affixing different shaped and colored glitter to

each animal character to simulate the play mechanics of shaking the toy.

45. Shapiro’s sculptures were in generally accepted “kit-bash” model form,

using pre-made glitter sorted into shapes and using different translucent colored

resin to represent the more detailed expression in the slideshow in the Wishables

Submission that in fact, each of the characters in the line would have its own unique

symbol, that such unique symbol would be the shape of the “glitter icon floating

inside;” that “Each Wishable has a special symbol, and that symbol is floating inside

the character Æ Further encouraging collectability;” and that the “package indicates

Wishable [character]’s ‘wish specialty’” through use of the unique symbol. (Exh. 1

at 12-13).

46. In the “kit-bash” sculptures in the Wishables Submission, Shapiro

represented the foregoing expression by using a heart-shaped glitter on a yellow

chick (Bettina Lilly), heart-shaped glitter on a green pony (Winnie), star-shaped

glitter on a purple puppy (Beaux), heart-shaped glitter on a pink kitten (Riskers),

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4354.061/879088.1 12 COMPLAINT AND DEMAND FOR JURY TRIAL

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LAW

and star-shaped glitter on a blue fawn (Moonzie), to represent generally in “kit-

bash” form, using ready-made components, that Bettina Lilly’s symbol floating

inside would be heart-shaped, Winnie’s would be trophy-shaped, Beaux’s would be

paw-print-shaped, Risker’s would be happy face-shaped, and Moonzie’s would be

moon-shaped.

47. In a “kit-bash” sculpture in the Wishables Submission, Shapiro used

pre-made glitter in the shape of stars to model the application of her invention to

Hasbro’s existing Littlest Pet Shop property depicted in Paragraph 38 above,

showing how a star-shaped symbol floating inside the character with a “snow

globe”-like play mechanic could continue the star- or flower-shaped decal painted

on Hasbro’s existing Littlest Pet Shop character to extend the character’s personality

and narrative into a “new way to play” using a “low-cost innovation” and one of the

“newest and hottest girls trends.”

48. Shapiro is informed and believes and thereupon alleges that Shapiro’s

Wishables Submission contained information previously unknown to Hasbro,

including her variation on using shaped glitter as symbols to carry through a

narrative story, personality and character iconography to appeal to girls; repeating

such symbols on the package to drive collectability; and original market research

showing that the time was right to translate the new and hot “snow globe” trend for

Hasbro’s existing properties.

THE PARTIES’ COURSE OF DEALING

49. It is the custom and practice in the toy industry that toy companies

invite outside inventors to submit original inventions, including for use with existing

properties.

50. Injecting a “new feature” or “new way to play” into long-standing toy

properties on a regular basis is essential to the long-term sales prospects of existing

properties, as it allows for new lines of toys (“line extensions”) based on existing

properties and encourages collectability.

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51. The value of an outside inventor’s submission can be found in any

aspect of a play pattern, feature, packaging device, narrative expression, marketing

mechanic, market research, new combination of existing design elements,

innovation, proof of concept, three-dimensional expression, or other information

previously unknown to the toy company.

52. On November 2, 2012, Phil Sage of Hasbro introduced Shapiro over

email to Wayne Luther, Hasbro’s Senior Director of Global Acquisitions and

Director of Inventor Relations.

53. Sage’s introductory email disclosed that Hasbro recognized Shapiro as

a proven expert in girls toys and that the areas in which Hasbro was seeking

inventor submission were, inter alia:

“2. LPS [Littlest Pet Shop]: Animation new on the Hub, Want excitement, new surprises, low cost innovative feature[s] in pets, never been seen mechanisms. 3. Pony [My Little Pony]: Focus on hair, materials, styling innovation .. New ways to play[.] 4. Fashion dolls in general, a line or segment of product .. Not an item.

Newest and hottest girls trends.”

54. Based on the information that Hasbro was looking for “excitement, new

surprises, low cost innovative features,” “never been seen mechanisms” “new ways

to play” and “newest and hottest girls trends,” Shapiro created the new prototype

sculpture for inclusion in her Wishables Submission depicted in Paragraph 38 above

to show how Wishables could be adapted to Hasbro’s existing properties such as

Littlest Pet Shop.

55. On April 8, 2013, Hasbro sent Shapiro the AHC.

56. On April 15, 2013, Shapiro returned the signed AHC to Hasbro.

Thereafter, Shapiro received the fully signed AHC.

57. On April 25, 2013, Shapiro met with Wayne Luther, Mike Gray and

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LAW

Dougal Grimes of Hasbro at a suite at the Doubletree in Santa Monica, California

and presented the Wishables Submission.

58. None of the three foregoing Hasbro employees, in the April 25, 2013

meeting with Shapiro, or at any time thereafter, stopped Shapiro’s presentation or

disclosed to Shapiro that Hasbro was working on a concept that also involved

shaped glitter or glitter swirling in liquid inside a small doll, as would have been

customary in the custom and practice of the toy industry had Hasbro perceived any

overlap between the Wishables Submission and any of Hasbro’s projects in

development.

59. At the April 25, 2013 meeting, Luther requested that Shapiro Fedex the

sculptures in the Wishables Submission to Hasbro’s office in Pawtucket, Rhode

Island, and that Shapiro upload the slideshow in the Wishables Submission using

Hasbro’s electronic upload tool.

60. On May 1, 2013, Shapiro FedExed her sculptures to Hasbro and

uploaded the slideshow in the Wishables Submission according to Hasbro’s

instructions and in reliance on the AHC.

61. Hasbro had exclusive possession of sculptures in the Wishables

Submission from approximately May 2, 2013 to July 25, 2013 and had possession of

the slideshow in the Wishables Submission from and after May 1, 2013 after having

first received the information on April 25, 2013.

62. On or about July 25, 2013, Hasbro informed Shapiro that Hasbro was

“passing” on the Wishables Submission, stating “Pass: Not right for current

direction in pet shop.”

63. Hasbro did not at any time disclose to Shapiro that it was working on

any liquid and glitter filled toys in the small doll category or otherwise.

64. Thereafter, in August 2014, Hasbro invited Shapiro to a recruiting

event in Los Angeles, California and asked Shapiro to submit her resume and

portfolio of work for potential full-time employment with Hasbro.

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 14 of 51 Page ID #:14

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4354.061/879088.1 15 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

HASBRO USES SHAPIRO’S INFORMATION IN MY LITTLE PONY

65. Shapiro is informed and believes and thereupon alleges that, some time

after receiving the Wishables Submission, Hasbro released new lines of small dolls

entitled My Little Pony Cutie Mark Magic Water Cuties, My Little Pony Rainbow

Shimmer, and variations thereof (collectively, the “Accused Toys”) with similarities

to the Wishables Submission.

66. Shapiro is informed and believes and thereupon alleges that Hasbro is

selling the Accused Toys through every major toy retailer in the United States,

including but not limited to Wal-Mart, Target, Toys R Us, Kmart, and Amazon, and

worldwide.

67. Shapiro is informed and believes and thereupon alleges that the same

designers at Hasbro that worked on the Littlest Pet Shop line in and around 2013

also worked on the My Little Pony line and had access to the Wishables

Submission.

FIRST CAUSE OF ACTION

(Breach of Express Written Contract)

68. Shapiro re-alleges paragraphs 1 through 67, as if fully set forth herein.

69. On or about April 9, 2013, Shapiro and Hasbro entered into the written

AHC.

70. On or about April 25, 3013, Shapiro first disclosed information

comprising the Wishables Submission to Hasbro under the written AHC.

71. In reliance on and in consideration of the AHC, Shapiro shared

confidential and proprietary information comprising the Wishables Submission

with Hasbro, including by providing Hasbro exclusive access for three months to

Shapiro’s unpublished sculptures, access to Shapiro’s unpublished slideshow, and

Shapiro’s confidential, in-person demonstration.

72. Shapiro fully performed all conditions and obligations required of her

under the AHC, including but not limited to labeling all confidential information

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 15 of 51 Page ID #:15

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4354.061/879088.1 16 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

thereunder “CONFIDENTIAL.”

73. Hasbro materially breached the AHC by the acts alleged above,

including, inter alia, using confidential information in the Wishables Submission

previously unknown to Hasbro in the Accused Toys.

74. Hasbro has not paid Shapiro any compensation for using the

information acquired under the AHC that was previously unknown to Hasbro,

although Hasbro initiated the transfer of information, Shapiro’s information was

directly responsive to Hasbro’s inventor brief in Hasbro’s November 2, 2012 email,

and it is Shapiro’s livelihood to create such information.

75. Shapiro is informed and believes and thereupon alleges that she has

been damaged by Hasbro’s material breach of the AHC, in an amount unknown but

exceeding at least $75,000.00, based, in part, on the reasonable and customary

royalty rates and advances for license of original toy inventions; sales of the

Accused Toys, which are conservatively estimated in excess of ten million dollars

($10,000,000.00); on Shapiro’s historical toy industry salaries and consulting fees;

and Shapiro’s 2001 benchmark transaction with Mattel, Inc.

SECOND CAUSE OF ACTION

(Breach of Implied Covenant of Good Faith and Fair Dealing)

76. Shapiro re-alleges paragraphs 1 through 75, as if fully set forth herein.

77. Shapiro and Hasbro entered into a contract, namely the AHC.

78. Shapiro fulfilled her obligations under the AHC.

79. Any conditions precedent to Hasbro's performance of the AHC have

occurred.

80. Hasbro unfairly interfered with Shapiro's rights to receive the benefits

of the AHC.

81. Shapiro was harmed by Hasbro's conduct in an amount unknown but

believed to exceed Seventy-Five Thousand Dollars ($75,000.00).

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 16 of 51 Page ID #:16

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4354.061/879088.1 17 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

THIRD CAUSE OF ACTION

(Misappropriation of Trade Secrets in Violation of

California Uniform Trade Secrets Act, Cal. Civ. Code § 3426 et seq.)

82. Shapiro re-alleges paragraphs 1 through 81, as if fully set forth herein.

83. Shapiro owned a trade secret, namely information, including a formula,

pattern, compilation, program, device, method, technique, or process, that derives

independent economic value, actual or potential, from not being generally known to

the public or to other persons who can obtain economic value from its disclosure or

use.

84. In particular, Shapiro owned a trade secret consisting of a device for

making small doll toys more collectible by taking the magical play of a snow globe

and incorporating it into the shape of a character, doll, or pet, with shaped glitter

extending the personality, identity and narrative of the character into a shape or

symbol that floats inside liquid in the character, which gained value by not being

known to the public or those skilled in the art.

85. In addition, the Wishables Submission as a whole was a trade secret as

an effective, successful and valuable integration of public domain elements and the

aforesaid trade secrets that had independent economic value and was protected

from misappropriation. (See Altavion, Inc. v. Konica Minolta Sys. Lab. Inc., 226

Cal. App. 4th 26, 47, 171 Cal. Rptr. 3d 714, 731 (2014), review denied (Aug. 20,

2014).)

86. Shapiro’s trade secret was the subject of efforts that were reasonable

under the circumstances to maintain its secrecy, including that Shapiro required

each and every recipient of the Wishables Submission to sign a Nondisclosure

Agreement or Agreement to Hold Confidential prior to receiving it; that Shapiro at

all times stored the Wishables Submission and related tangible materials in

password-protected computers and secure physical locations; that Shapiro labeled

the Wishables Submission “Confidential;” and that the Wishables Submission was

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 17 of 51 Page ID #:17

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4354.061/879088.1 18 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

unpublished prior to Hasbro’s use.

87. Hasbro acquired, disclosed, or used Shapiro's trade secret through

improper means, namely by breach of the AHC.

88. Hasbro's actions damaged Shapiro in an amount unknown but believed

to exceed Seventy-Five Thousand Dollar ($75,000.00).

89. Shapiro is informed and believes and thereon alleges that Hasbro

misappropriated her trade secret willfully and maliciously, entitling her to an award

of exemplary damages in an amount two times the amount of her actual loss or a

reasonable royalty, pursuant to Cal. Civ. Code. § 3426.3.

FOURTH CAUSE OF ACTION

(Copyright Infringement, 17 U.S.C. § 501 et seq.)

90. Shapiro re-alleges paragraphs 1 through 89, as if fully set forth herein.

91. On or about November 10, 2014 and November 13, 2014, Shapiro

submitted to the Register of Copyrights completed applications for registration,

deposit copies, and the applicable fees in order to register the copyrights in her

original, unpublished slideshow and sculptures expressing the Wishables

Submission. Shapiro’s application for a copyright registration in the sculptures

included the statement, “These are modeling the expression of having various

shapes and sizes of glitter floating and moving in liquid that is inside them.”

92. The slideshow and sculptures submitted by Shapiro to the Copyright

Office contain material that is wholly original to their author, Shapiro, and is

copyrightable subject matter under the Constitution and laws of the United States.

93. The Copyright Office granted Shapiro Copyright Registration Number

VAu 1-194-503 with effective date of registration of January 21, 2015 in work

entitled “Wishables” described as “text, photograph(s), 2-D artwork, sculpture”

based on Shapiro’s submission of the slideshow and sculptures in the Wishables

Submission to the Copyright Office as specimens.

94. The Copyright Office granted Shapiro Copyright Registration Number

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 18 of 51 Page ID #:18

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4354.061/879088.1 19 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

VAu 1-195-749 with effective date of registration February 9, 2015 in work entitled

“Wishables Models” described as “sculpture” based on Shapiro’s submission of the

photograph of the sculptures in the Wishables Submission attached hereto as Exhibit

2 to the Copyright Office as a specimen.

95. As the owner of the copyrights in the unpublished material in the

slideshow and sculptures comprising the Wishables Submission (collectively, the

“Copyrighted Works”), Shapiro secured the exclusive rights under 17 U.S.C. § 106,

among others, to make first publication of the Copyrighted Works and to prepare

derivative works therefrom.

96. Hasbro infringed, and is continuing to infringe, the Copyrighted Works,

including by infringing Shapiro’s right to make the first publication of the

Copyrighted Works; by copying, reproducing, preparing and selling works derived

from the Copyrighted Works; and inducing, causing, and contributing to others

committing similar violations, including by selling the Accused Toys in the Central

District of California.

97. Shapiro did not authorize Hasbro to make first publication of the

Copyrighted Works or to copy, reproduce, prepare derivative works from, display,

or sell products infringing the Copyrighted Works, or at all.

98. Hasbro did not seek or obtain any permission, consent, or license from

Shapiro for making the first publication of the Copyrighted Works or to copy,

reproduce, prepare derivative works from, display, or sell products infringing the

Copyrighted Works, or at all.

99. Hasbro’s infringing acts alleged herein were willful, deliberate, and at

least from and after December 2014, were committed with prior notice and

knowledge of Shapiro's copyrights. At a minimum, Hasbro acted in reckless

disregard of Shapiro's copyrights.

100. As a result of its actions, Hasbro is liable to Shapiro for willful

copyright infringement under 17 U.S.C. § 501. Shapiro suffered, and will continue

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 19 of 51 Page ID #:19

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4354.061/879088.1 20 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

to suffer, substantial damage, including the loss of the right to control first

publication of her work, loss of the right to keep the Wishables Submission

unpublished, and other losses, in an amount not yet ascertained, but which will be

determined according to proof.

101. In addition to Shapiro’s actual damages, Shapiro is entitled to receive

all additional profits made by Hasbro attributable to the infringement and not

counted in determining actual damages, pursuant to 17 U.S.C. § 504; and an

accounting of and constructive trust over all revenues that Hasbro has received as a

result of its wrongful acts.

102. In the alternative, Shapiro is entitled to statutory damages pursuant to

17 U.S.C. § 504(c), which should be enhanced by 17 U.S.C. § 504(c)(2) because of

Hasbro’s willful copyright infringement.

103. Hasbro's acts complained of herein have damaged, and will irreparably

damage, Shapiro.

104. Shapiro has no adequate remedy at law for certain of these wrongs and

injuries in that (i) Shapiro’s copyrights are unique and valuable properties which

may not have a readily determinable market value; (ii) the infringements by Hasbro

constitute deprivations of Shapiro's exclusive right to decline to release her

copyrighted work altogether, and to decline permission for the creation of

derivative works except on terms acceptable to Shapiro; and (iii) the loss of

Shapiro’s right to attribution in connection with the first publication of her work

has been destroyed forever, along with the intangible loss of the goodwill and

publicity that should have accrued to Shapiro.

105. Hasbro's acts of copyright infringement have caused Shapiro

irreparable injury and Hasbro threatens to continue to commit these acts, including

by planning a release of additional “waves” (or lines) of Accused Toys.

106. Accordingly, Shapiro is entitled to preliminary and permanent

injunctive relief pursuant to 17 U.S.C. § 502 restraining and enjoining Hasbro and

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 20 of 51 Page ID #:20

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4354.061/879088.1 21 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

its agents, servants and employees, and all persons acting thereunder, in concert

therewith or on its behalf, from using, copying, selling, displaying, or otherwise

exploiting the Copyrighted Works, or any works derived therefrom, including, the

Accused Toys.

107. Shapiro is entitled to an order pursuant to 17 U.S.C. § 503 that any of

Hasbro’s infringing products be impounded and destroyed.

108. Shapiro is also entitled to recover her attorneys’ fees and costs of suit

pursuant to 17 U.S.C. § 505.

WHEREFORE, Plaintiff Shapiro prays as follows:

A. For an award of damages in an amount to be proven at trial of at least

Seventy-Five Thousand Dollars ($75,000.00);

B. For restitution or disgorgement of all revenue Hasbro obtained by its

inequitable conduct, in an amount of at least Seventy-Five Thousand Dollars

($75,000.00);

C. For an award of the amounts that Hasbro has unjustly enriched itself

caused by misappropriation of Shapiro’s trade secrets that is not taken into account

in computing damages for actual loss;

D. For an award of exemplary damages in an additional amount not

exceeding two times the award under Paragraphs A and C above;

E. For an injunction prohibiting the continued sale of the Accused Toys in

any territory or by any party within the jurisdiction of this Court;

F. For an award of actual damages from the infringement of Shapiro’s

copyrights plus additional profits of Hasbro attributable to the infringement, or

statutory damages for copyright under 17 U.S.C. § 504;

G. For an order under 17 U.S.C. § 503 that any of Hasbro’s infringing

products be impounded or destroyed;

H. For an award of Shapiro’s attorneys’ fees and costs pursuant to Cal.

Civ. Code. § 3426.4 and 17 U.S.C. § 505; and

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 21 of 51 Page ID #:21

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4354.061/879088.1 22 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

I. For such other and further relief as the Court may deem proper.

DATED: April 21, 2015 Respectfully submitted, LISA BORODKIN, ATTORNEY AT LAW

By: /s/ Lisa J. Borodkin LISA J. BORODKIN

KING, HOLMES, PATERNO & BERLINER LLP Attorneys for Plaintiff ELINOR SHAPIRO

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 22 of 51 Page ID #:22

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4354.061/879088.1 23 COMPLAINT AND DEMAND FOR JURY TRIAL

LISA BORODKIN ATTORNEY AT

LAW

DEMAND FOR JURY TRIAL

Plaintiff hereby demands a jury trial as provided by Rule 38(a) of the Federal

Rules of Civil Procedure. DATED: April 21, 2015 Respectfully submitted,

LISA BORODKIN, ATTORNEY AT LAW

By:

/s/ Lisa J. Borodkin

LISA J. BORODKIN KING, HOLMES, PATERNO & BERLINER LLP Attorneys for Plaintiff ELINOR SHAPIRO

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 23 of 51 Page ID #:23

April

201

3!SP

ARKL

E!El

lie S

hapi

ro!

©2013&Sparkle&&&&Confiden3al&

EXHIBIT 1 24

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 24 of 51 Page ID #:24

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

We

know

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ls lo

ve..

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EXHIBIT 1 25

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 25 of 51 Page ID #:25

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

And

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ract

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too.

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EXHIBIT 1 26

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 26 of 51 Page ID #:26

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Put

the

m a

ll t

oge

ther

an

d w

hat

do y

ou

get?

EXHIBIT 1 27

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 27 of 51 Page ID #:27

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

So w

hat

are

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habl

es?

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habl

es a

re a

collec

tion

of

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like

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rs f

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d w

ith

glit

tery

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uid

w

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elp m

ake

your

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hes

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e tr

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ch o

ne

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a sp

ecia

l se

cret

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st f

or

you!

EXHIBIT 1 28

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 28 of 51 Page ID #:28

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Mee

t th

e W

isha

bles

EXHIBIT 1 29

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 29 of 51 Page ID #:29

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Mt.

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hmore

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most

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ical

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ce t

o b

e

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ays

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ing

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ter

fr

om

the

top o

f th

e pea

ks

to t

he s

par

kli

ng

sea

It’s

hom

e to

the

lit

tle

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habl

es

who

hel

p m

ake

your

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hes

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e tr

ue

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ell th

em w

hat

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h fo

r te

ll t

hem

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r yo

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use

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on

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isha

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t yo

ur w

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r yo

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es s

tory

...

EXHIBIT 1 30

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 30 of 51 Page ID #:30

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

the

Wis

habl

es

Beau

x

Win

nie

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ttin

a Li

ly

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zy

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se I

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EXHIBIT 1 31

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 31 of 51 Page ID #:31

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Con

cept

EXHIBIT 1 32

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 32 of 51 Page ID #:32

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

S&

Ever

y W

isha

ble

has

a

Secr

et m

essa

ge h

idde

n i

nsi

de!

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essage&in&bo=om&

sec3on,&s3ll&allowing&gli=ery&liquid&to&flow&throughout.&&

Each&character’s&base&is&covered&with&sparkly,&

colorful&snow&from&M

t.&Wishmore!&&

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ishables&over.&&

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EXHIBIT 1 33

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 33 of 51 Page ID #:33

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

So w

hat’

s YO

UR

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Woo

(aka

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nie

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h pr

acti

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that

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s&

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in:

&Lo

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Beau

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&UR

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lled

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he f

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:&Sw

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me&

Babe

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orn

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4 U&

EXHIBIT 1 34

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 34 of 51 Page ID #:34

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Char

acte

r

Whi

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nie

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(Tr

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) &

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mst

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&(

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) &

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isha

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has

a W

ish “S

pec

ialt

y”

whi

ch e

nco

urag

es c

ollec

tibi

lity

EXHIBIT 1 35

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 35 of 51 Page ID #:35

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Pac

kag

e in

dica

tes

Wis

habl

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“wis

h sp

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lty”

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ch W

isha

ble

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a sp

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l sy

mbo

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nd

that

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bol is

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de t

he c

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collec

tibi

lity

EXHIBIT 1 36

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 36 of 51 Page ID #:36

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Wis

habl

es li

ght-

up w

hen

the

y si

t on

the

ir

spar

kly

gem

fro

m M

t. w

ishm

ore&

EXHIBIT 1 37

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 37 of 51 Page ID #:37

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Mt.

Wis

hmore

LEGE

ND:�

1. Ar

rival

Poin

t. W

ishab

les fi

rst

arriv

e he

re.�

2. S

ortin

g Ar

ea. G

ood

wish

es m

ove

onto

nex

t ph

ase.

Nega

tive

wish

es a

re to

ssed

into

the

spa

rkly

sea

wher

e th

ey in

stant

ly be

come

glit

ter�

3. Lig

ht-U

p Sl

ide.

Wish

es a

re c

arrie

d do

wn �

4. N

ap T

ime.

Wish

ables

hav

e a

nap

and

drea

m ab

out

the

wish

es�

5. S

nack

Tim

e. W

hen

Wish

ables

get

hun

gry,

they

he

ad to

the

sna

ck r

oom�

6. P

lay A

rea.

Some

times

Wish

ables

just

like

to h

ang

out

and

play..

.and g

low! (

Light-

up fe

atur

e)�7.

Eleva

tor.

Take

s Wish

ables

up

to t

he b

ridge

and

th

en c

ross

ove

r to

Mt.

Wish

more

’s hi

ghes

t—an

d mo

st

impo

rtan

t—pe

ak. E

levato

r spin

s too

!�8.

Mt.

Wish

more

Sum

mit.

Wish

ables

sit

on t

he

high

est

peak

, spin

aro

und,

and

while

the

ir gli

tter

swi

rls

and

twirl

s, yo

ur w

ishes

are

cry

stalliz

ed…a

nd s

oon

will

come

tru

e!�

The

plac

e w

here

wis

hes

go!

closed&&

view&

2&

1&

3&

4

5&

6&

7&

8&

EXHIBIT 1 38

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 38 of 51 Page ID #:38

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

I lov

e W

isha

bles

!

SHE’

S so

tin

y an

d ad

orab

le!

I wan

t to

ta

ke H

ER w

ith

me

alw

ays

I ’d m

ake

man

y w

ishe

s

I ’d w

ish

for

stra

ight

A’s

I ’d w

ish

I cou

ld b

e a

supe

rsta

r

I’d m

ake

a n

ew w

ish

ever

y m

orn

ing

I ’d m

ake

one

new

wis

h ea

ch w

eek

I ’d f

ind

a se

cret

pla

ce i

n m

y be

droo

m

to k

eep

ALL

my

Wis

habl

es

I lik

e th

e w

ay I

get

to s

ee t

he s

ecre

t m

essa

ge.

It f

eels

ver

y m

agic

al

I lov

e th

at t

hey

ligh

t up

!

I ’d w

ant

to k

eep

her

wit

h m

e al

way

s

I wan

t ev

ery

sin

gle

litt

le W

isha

ble!

And

IN T

HE W

ORDS

OF

TH

E EX

PERT

S...

Sour

ce:

Focu

s Gr

oups

201

2 an

d 20

13

EXHIBIT 1 39

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 39 of 51 Page ID #:39

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Snow

glo

bes

have

lat

ely

evolv

ed i

nto

som

ethi

ng

more

fas

hion

able

, in

tric

ate

and

expen

sive

. Re

tail

st

ore

s, f

ashi

on

des

ign

ers,

corp

ora

tion

s, m

ovi

e st

udio

s an

d vi

sual

art

ists

are

in

crea

sin

gly

crea

tin

g si

gnat

ure

globe

s, a

nd

not

just

for

the

holi

days

.

Source:&New&York&Tim

es,&December&19,&2012&

Snow

Glo

bes

are

hot

!

EXHIBIT 1 40

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 40 of 51 Page ID #:40

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

2012

Hol

iday

Win

dow

Sa

ks F

lags

hip

stor

e, N

YC

“We

alw

ays

have

a g

ener

al

idea

of

whi

ch h

olid

ay w

indo

w

wil

l be

mos

t su

cces

sful

an

d ge

t th

e be

st r

espo

nse

,” s

aid

Harr

y Cu

nn

ingh

am,

Sak’s

se

nio

r vi

ce p

resi

den

t fo

r de

sign

an

d vi

sual

m

erch

andi

sin

g. “I

per

son

ally

di

d n

ot e

xpe

ct t

he s

now

gl

obes

to

be a

s bi

g a

hit.”

Source:&New&York&Tim

es,&December&19,&2012&

EXHIBIT 1 41

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 41 of 51 Page ID #:41

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

“TSA

to

okay

sn

ow g

lobe

s fo

r ca

rry-

on”

Headline&from&CNN,&USA&Today,&NBC&and&others.&&&

Snow

glo

bes

mus

t be

pr

etty

pop

ular

if e

ven

the

TSA

is t

alki

ng a

bout

the

m!

EXHIBIT 1 42

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 42 of 51 Page ID #:42

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&Br

and

Over

view

Posi

tion

ing

Th

e on

ly c

ollec

tibl

e li

ne

of

spar

kly

, cr

ysta

l-li

ke

char

acte

rs f

iled

wit

h gl

itte

ry liq

uid

who

hel

p m

ake

your

w

ishe

s co

me

true

, an

d e

ach

on

e ha

s a

spec

ial se

cret

wis

h ju

st f

or

you

Tagl

ine

M

ay A

LL y

our

wis

hes

com

e tr

ue

Targ

et A

udie

nce

Gi

rls

4 –

8

&

EXHIBIT 1 43

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 43 of 51 Page ID #:43

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Colle

ctib

le S

trat

egie

s Cr

eate

a f

ren

zy a

nd

craz

e w

here

gir

ls

gott

a ha

ve W

isha

bles

to h

elp m

ake

all of

thei

r w

ishe

s co

me

true

, an

d di

scove

r al

l th

e se

cret

wis

hes:

• De

velo

p a

n e

xte

nde

d m

atri

x w

ith

endl

ess

poss

ibil

itie

s fo

r ch

arac

ters

wit

hin

eac

h th

emed

collec

tion

:

– Ea

ch c

hara

cter

has

the

ir o

wn

look,

per

son

alit

y,

and

spec

ial se

cret

wis

h fo

r yo

u – 

Diff

eren

t sc

ales

: m

ini’s

, 2”

, 3”

• Hu

ndr

eds

to c

ollec

t!

EXHIBIT 1 44

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 44 of 51 Page ID #:44

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Colle

ctio

ns

& Th

emes

• 

Gard

en

• Sa

fari

• 

Jun

gle

• Do

mes

tic

• 

Oce

an

• Fa

rm

• Ar

ctic

• 

Zoo

• Af

rica

n

• W

ildl

ife

• Bi

rds

• 

Fan

tasy

..

.jus

t to

nam

e a

few

!

EXHIBIT 1 45

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 45 of 51 Page ID #:45

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Plus

En

dles

s poss

ibil

itie

s fo

r m

ore

collec

tion

s!

Gard

en p

arty

Swee

ts &

tr

eats

Fr

ien

ds f

ore

ver

Frui

ty

drea

ms

Flow

er

pow

er

Pret

ty

Prin

cess

Hear

ts o’ l

ove

Kaw

aii

Cute

!

EXHIBIT 1 46

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 46 of 51 Page ID #:46

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

And

HUGE

Lic

ensi

ng

Oppo

rtun

itie

s,

such

as…

+�

EXHIBIT 1 47

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 47 of 51 Page ID #:47

©2013&Sparkle&&&&&&&&&&&&&&&&&Confiden3al&

Lin

e Op

port

unit

ies

Segm

ent##

Prod

uct##

SRP##

Descrip

7on#

Collec3bles&&

2”&W

ishables&&Themed&Collec3ons&&

$5.99&O&

$7.99&&

Different&themed&collec3ons.&

Hundreds&to&collect!&&

Deluxe&&

3”&Feature&W

ishables&

$9.99&O&

$10.99&

Includes&m

agical&light&up&display&base&

that&illuminates&your&W

ishables&OR&

Color&Change&&“crystal”&&character&

Carrying&Case&&

Carry&Case&w/&1&W

ishables&

$11.99&

Carrying&and&&Display&&Case&all&in&1.&&

Comes&with&1&special&&W

ishable&

Playsets&

MidOPriced&Themed&Playsets&&

$14.99&&

Themes&are&endless:&garden&party,&

tree&house,&ocean&&friends,&and&m

any&

more!&

Deluxe&M

t.&Wishmore&Playset&&

$19.99&O&

$24.99&

Deluxe&Playset&House&with&lights&and&

fun&m

agical&transforming&features&&

Ac3vi3es&&

Low&&&M

idOPriced&Themed&Ac3vity&Kits&&

$4.99&O&

$9.99&

Customize,&create&and&decorate&&your&

Wishables&&

Lifestyle&&

Jewelry&&&Fashion&Accessories&(Mini’s!)&

Backpacks/Purses/ClipOOns&

Plus&Sta3onery,&Room&Décor,&Plush,&Apparel&

and&m

ore!&

$4.99&O&

$19.99&

Wear&your&W

ishables&wherever&you&&

go!&&&

Live&the&W

ishables&lifestyle!&&

Licensing&&

Disney,&Hello&Ki=y,&Barbie,&Paul&Frank&and&

other&relevant&top&proper3es&&

Licensing&opportuni3es&that&combine&&

girls’&favorite&characters&with&a&

Wishables&collec3ble&

EXHIBIT 1 48

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 48 of 51 Page ID #:48

Wis

habl

es -

Reas

ons

Why

• 

Wis

habl

es c

om

bin

es t

he u

niv

ersa

lly

belo

ved

them

es o

f w

ishi

ng

and

secr

ets

wit

h al

l th

e th

ings

tha

t gi

rls

love…

the

mag

ic o

f sn

ow

glo

bes,

gli

tter

, sp

arkle

an

d ad

ora

ble

char

acte

rs.

This

has

N

ever

bef

ore

bee

n s

een

in

a c

ollec

tibl

e li

ne.

• W

isha

bles

red

efin

es t

he c

ollec

tibl

e ca

tego

ry a

nd

pro

vide

s a

new

way

of

collec

tin

g an

d pla

yin

g.

• W

isha

bles

tap

s in

to w

hat

reso

nat

es w

ith

girl

s –

the

emoti

on

al n

eed/

desi

re t

o w

ish

and

drea

m,

collec

t an

d sh

are,

an

d se

cret

s to

o.

• W

isha

bles

pro

vide

s en

dles

s poss

ibil

itie

s fo

r n

ew c

hara

cter

s &

collec

tion

s plu

s li

ne

exte

nsi

on

s an

d li

cen

sin

g th

at w

ill

con

tin

ue t

o b

uild

an

d su

stai

n t

he f

ren

zy a

nd

craz

e.

• W

isha

bles

is

a li

fest

yle

bran

d w

ith

an o

wn

able

look a

nd

posi

tion

ing

that

ex

ten

ds b

eyon

d co

llec

tibl

es p

rovi

din

g an

opport

unit

y to

mak

e a

big

stat

emen

t at

ret

ail.

©2013&Sparkle&&&&Confiden3al&

EXHIBIT 1 49

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 49 of 51 Page ID #:49

©2013&Sparkle&&&&Confiden3al&

May

all

YOUR

wish

es c

ome

true

.�

EXHIBIT 1 50

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 50 of 51 Page ID #:50

EXHIBIT 2 50

Case 2:15-cv-02964-BRO-AJW Document 1 Filed 04/21/15 Page 51 of 51 Page ID #:51