Spin Master Ltd., a prominent toy manufacturer based in Ontario, is embroiled in a contentious legal battle over royalties, according to a lawsuit filed in Suffolk Superior Court. The complaint accuses Spin Master of underpaying Massachusetts-based BBX Design Group for designs linked to its popular remote-controlled monster trucks.
Spin Master Royalties Lawsuit: Dispute Over Royalty Payments
BBX Design Group’s lawsuit, filed on Friday, claims Spin Master has refused to pay royalties for several products, arguing that these items fall outside the scope of a 2018 licensing agreement. This deal covered the “Moon Shot” toy design, characterized by a remote-controlled vehicle with oversized foam wheels. The dispute centers on Spin Master’s assertion that the royalties for seven products are invalid due to the “softness” of the wheels, which it argues diverges from the agreement’s terms.
Contractual Conflict and Claims
BBX argues that the license agreement only specifies “large foam wheels,” without detailing the texture or firmness. The company’s lawsuit accuses Spin Master of acting in bad faith by claiming that its products’ “soft foam wheels” are not covered by the agreement. BBX alleges this stance is a deliberate attempt to evade paying owed royalties.
