Background: The Phillip Burton Federal Building and U.S. Courthouse is pictured in San Francisco, on Monday, Nov. 13, 2023 (AP Photo/Noah Berger). Inset top: Roblox — Jazwares Avatar Figurine (federal court filing). Inset bottom: My Avastars Toy by WowWee (federal court filing).
Roblox Corp., one of the world’s leading online gaming platform companies, confidentially settled a lawsuit with a Hong Kong-based toymaker over claims that a line of dolls illegally infringed on Roblox’s copyrights.
U.S. District Judge Susan Illston, a Bill Clinton appointee, approved a one-page settlement order filed Tuesday in U.S. District Court in San Francisco. Per the public terms of the settlement, Roblox, WowWee, and Gramps Goods will each bear their own attorneys costs, but other terms of the settlement are confidential.
Roblox is a popular online gaming platform in which users create digital worlds and use virtual games to connect with others. The platform both provides content and also allows users to generate their own content. On the platform, users interact through avatars, which are cartoonlike characters designed by Roblox. Users also have the option to customize their avatars by changing the avatars’ hairstyles, facial expressions, clothing, and accessories.
Roblox requires users to agree to its Terms of Use, which provides that users will not use Roblox content off-platform and will not monetize Roblox content, even for user-created content on the Roblox platform.
Roblox sued toy companies WowWee Group Limited, WowWee Canada Inc., WowWee USA, and Gramps Goods, Inc. in 2022 alleging that the companies, “copied Roblox’s wildly successful avatar intellectual property to create and sell a line of physical dolls to exploit Roblox’s investment, creative efforts, and popularity in the marketplace for their own profit.”
Below, photos included in court filings can be seen showing Roblox online avatars side by side with WowWee’s physical dolls.
The plaintiff said that not only did WowWee violate its copyrights, but that WowWee even included a special code with every doll that would allow customers to link their real dolls with online avatars on the Roblox platform. Further, Roblox argued that WowWee’s conduct violated its explicit Terms of Use.
In addition to copyright claims, Roblox also alleged trademark infringement, false association, and false designation of origin claims, arguing that WowWee used the Roblox trademark on its social media accounts to advertise its products. The lawsuit asked for unspecified damages.
The settlement comes just weeks before the case was expected to go to trial.
Roblox is currently defending unrelated legal claims that it failed to protect minors on its platform by allowing third parties to create virtual casinos that lured children into online gambling rings.
Law& Crime reached out to attorneys for the parties for comment, but did not immediately receive a response.
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