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Capable News

Risk Alert | High-frequency plaintiff alert in the sports toy industry, involving cross-border e-commerce companies.

Wham-O Holding, Ltd. (hereinafter referred to as “Wham-O”) is a company headquartered in Carson, California, USA, with its main business address at 966 Sandhill Avenue, Carson, California 90746. Established in 1948, the company is dedicated to providing fun sports toys for consumers of all ages and holds globally recognized toy brands such as the iconic Frisbee, Slip ‘N Slide, and Hula Hoop, as well as professional outdoor brands like Morey, Boogie, Snow Boogie, and BZ.

Wham-O Company and its main brands, Source: Wham-O Official Website
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02 Relevant Product and Industry Information

The products in question mainly include sports toys such as Frisbees, Slip ‘N Slides, and Hula Hoops. Frisbee is a disc-shaped throwing sport that originated in the United States in the 1950s and has since gained popularity worldwide. Frisbees are circular in shape and are thrown using fingers and wrist motions to make them spin and fly in the air. Frisbee products, starting from 1957, have been released in a variety of shapes, sizes, and weights, catering to all age groups and skill levels, with applications ranging from casual play to professional competitions.
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Frisbee, Source: Wham-O Official Website Product Page

Slip ‘N Slide is a children’s toy set up on outdoor surfaces like lawns, made from thick, soft, and durable plastic material. Its simple and brightly colored design features a smooth surface that allows children to slide on it after water is applied. Slip ‘N Slide is known for its classic yellow slide product, offering single and multiple tracks suitable for different numbers of users.
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Slip ‘N Slide, Source: Wham-O Official Website Product Page

Hula Hoop, also known as a fitness hoop, is not only used as a general toy but also for competitions, acrobatic performances, and weight loss exercises. Hula Hoop products, originating in 1958, offer hoops for both children and adults for home parties and daily fitness routines.
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Hula Hoop, Source: Wham-O Official Website Product Page

03 Wham-O’s Intellectual Property Litigation Trends

Since 2016, Wham-O has initiated a total of 72 intellectual property lawsuits in US district courts, involving patents and trademarks. Looking at the litigation trend, there is a consistent pattern of stable growth. Starting from 2016, Wham-O has consistently initiated lawsuits each year, with the number increasing from 1 case in 2017 to 19 cases in 2022. As of June 30, 2023, Wham-O has initiated 24 lawsuits in 2023, all involving trademark disputes, indicating that the litigation volume will likely remain high.
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Patent Litigation Trend, Data Source: LexMachina

Out of the cases involving Chinese companies, the majority are against entities from Guangdong, accounting for 71% of all cases. Wham-O initiated its first lawsuit against a Guangdong-based company in 2018, and since then, there has been a growing trend of cases involving Guangdong companies each year. The frequency of Wham-O’s litigation against Guangdong companies sharply increased in 2022, reaching 16 cases, suggesting a continued upward trend. This indicates that Guangdong-based companies have become a focal point for Wham-O’s rights protection efforts.

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Guangdong Company Patent Litigation Trend, Data Source: LexMachina

It’s noteworthy that in most cases, the defendants are primarily cross-border e-commerce companies.

Out of the 72 intellectual property lawsuits initiated by Wham-O, 69 cases (96%) were filed in the Northern District of Illinois, and 3 cases (4%) were filed in the Central District of California. Looking at the case outcomes, 53 cases have been closed, with 30 cases decided in favor of Wham-O, 22 cases settled, and 1 case dismissed procedurally. The 30 cases won were all default judgments and resulted in permanent injunctions.
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Case Outcomes, Data Source: LexMachina

Out of the 72 intellectual property lawsuits initiated by Wham-O, 68 cases (94%) were jointly represented by JiangIP Law Firm and Keith Vogt Law Firm. The main attorneys representing Wham-O are Keith Alvin Vogt, Yanling Jiang, Yi Bu, Adam Grodman, and others.
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Law Firms and Attorneys, Data Source: LexMachina

04 Core Trademark Rights Information in the Lawsuits

Out of the 51 intellectual property lawsuits against Guangdong companies, 26 cases involved the Frisbee trademark, 19 cases involved the Hula Hoop trademark, 4 cases involved the Slip ‘N Slide trademark, and 1 case each involved the BOOGIE and Hacky Sack trademarks.
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Involved Trademarks Examples, Source: Wham-O Legal Documents

05 Risk Warnings

Since 2017, Wham-O has frequently initiated trademark infringement lawsuits in the United States, with most cases targeting over a hundred companies. This trend indicates a characteristic of batch litigation against cross-border e-commerce companies. It’s recommended that relevant companies pay attention to this and conduct comprehensive searches and analyses of trademark brand information before introducing products to overseas markets, to effectively manage risks. Additionally, the preference for filing lawsuits in the Northern District of Illinois reflects Wham-O’s ability to learn and utilize the unique intellectual property legal rules of different regions in the United States, and relevant companies need to be cautious of this aspect.


Post time: Aug-23-2023

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