Spin Master Ltd. launches attack on counterfeiters of highly sought-after hit toy Bakugan Battle Brawlers

May 9, 2008 – Toronto – There’s an old saying that says that imitation is the sincerest form of flattery, but Spin Master Ltd, the company behind the North American toy-phenom Bakugan Battle Brawlers, is warning imitators that counterfeiting will not be tolerated and is offering parents guidance on how to ensure that their Bakugan purchases are the real thing.

Between February 6 and May 2, 2008, Spin Master Ltd. in conjunction with its anti-counterfeiting enforcement team at the Toronto-based law firm of Kestenberg Siegal Lipkus LLP served a combination of Canadian Federal Court Order Anton Piller Orders and cease and desist letters on 15 locations in Ontario and Quebec. As a result of this effort, a total of 2203 counterfeit Bakugan Battle Brawler items have been removed from sale. In addition, several businesses involved in the importation, distribution and sale of counterfeit Bakugan Battle Brawlers toys are currently being investigated.

“Spin Master has asked us to aggressively pursue the suppliers and stores selling these infringing products and we believe the word is getting out there that counterfeits will not be tolerated,” notes Lorne Lipkus of Kestenberg Siegal, Lipkus who is heading the enforcement efforts. “The obstacle facing us in our efforts is that Bakugan is such a hot product, even the counterfeiters and stores selling the counterfeits are selling out quickly. As enticing as counterfeits might be to some retailers however, its not worth the risk of a law suit.”

The RCMP Border Integrity investigators consistently note that the following is characteristic of the counterfeit products they encounter:

1. They are almost always cheaply made;
2. They are often unsafe;
3. They always generate huge profits for organized crime;
4. People involved in trafficking counterfeit products don’t care about the health and safety of the people, who knowingly or unknowingly, buy the product.

“The inevitable result of having a successful product is that the market gets flooded with cheap imitations,” states Christopher Harrs, General Counsel for Spin Master Ltd. “It’s often small convenience stores that are the unwitting buyers and end up on the wrong end of a law suit with consequences far outweighing the profit they could make on this product. The bigger mass market stores know better. “

From the Japanese words “baku” meaning “to explode” and “gan” meaning “sphere,” Bakugan Battle Brawlers is a collectible action strategy game featuring small spheres that pop open into powerful Bakugan monster action figures when skillfully rolled onto the game’s cards. Launched in Canada in August, then the United States this past January, Bakugan Battle Brawlers has exploded into the market to become the most talked about and most in-demand item for North American kids.

“We’re bringing in Bakugan in planes, trains, automobiles…whatever we can do to deliver product fast to meet this incredible demand,” says Donna MacNeil, Senior Director of Communications at Spin Master Ltd. “Bakugan is selling out within hours of reaching stores - kids want this product, and they want the real thing.”
Spin Master offers the following tips to help ensure that your Bakugan purchases are real:

- Some counterfeit Bakugan packaging is identical to original product so check the packaging for the Spin Master logo
- Authentic Bakugan Battle Brawlers items will always be in packaging; if Bakugan action figures or game cards are being offered individually, they aren’t real.
- Infringing product is being sold under names such as “Bursting Egg” and “Battle Barwlers”

More information on Bakugan Battle Brawlers can be found at www.bakugan.com

About Spin Master Ltd.

Spin Master™ is the 6th largest and fastest growing toy company in North America. A multi-category children’s entertainment company since 1994, Spin Master™ has been designing, developing, manufacturing and marketing consumer products for children around the world. With the launch of Bakugan Battle Brawlers, Spin Master™ has also marked its first foray into entertainment IP and television production. Spin Master™ is best known for such popular brands as Air Hogs®™, Aquadoodle™, Tech Deck, and Moon Sand. Spin Master™ employs over 500 people with offices in Toronto, Los Angeles, Paris, London, Hong Kong and China, and is proud to be recognized as one of Canada’s 50 Best