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CompAny news

Lego wins court case in China over Krones expands PET portfolio

copyright infringement
erman blow molding and packaging machinery
Gsupplier Krones AG has strengthened its PET
anish toymaker Lego has won another case against portfolio through the acquisition of MHT Holding
Dimitators in China where copies of its colorful plastic AG.Based in Hochheim, Germany, MHT and its
toy bricks and figures have been a recurring problem. In a subsidiaries specialize in injecting molding tools
landmark case last year, Lego for the first time succeeded
in a copyright competition case in China where it seeks a and services to the PET industry, with sales of €25
bigger slice of the $31 billion toys and games market. “We million annually. With the acquisition, the company
believe these decisions are well-founded in the facts and is expanding its PET portfolio into tooling for PET
the law, and clearly demonstrate the continued efforts
of Chinese authorities to protect intellectual property,”
Lego Chief Executive Niels B. Christiansen said in a
statement.The Guangzhou Yuexiu District Court ruled that
four companies had “infringed multiple copyrights of the
Lego Group and conducted acts of unfair competition by
producing and distributing Lepin building sets,” Lego said.
The court ordered that the companies immediately cease
“producing, selling, exhibiting or in any way promoting
the infringing products,” it said.Furthermore, Lego will
receive around 4.5 million Chinese yuan ($649,735) in
damages.Last year, the Beijing Higher Court passed a ruling
that recognized the Lego logo and name in Chinese as preform manufacturing, closing a gap in its value chain.
“well-known” trademarks in China, putting the toymaker The move is in response to increasing demand by the
in a better position to act against infringement of its beverage industry for “integrated solutions,” said
trademarks. China is important to Lego, which has seen Krones.“Acquiring MHT enables Krones to close the PET
slow or declining growth in its mature Western European cycle, from PET preform manufacturing and stretch
and U.S. markets, although China still accounts for less blow molding all the way through to PET recycling – and
than 10 percent of group sales. Lego, an abbreviation of then back to the manufacture of a new preform,” the
the Danish “leg godt,” meaning “play well,” plans to open company added.Post-acquisition, MHT will continue
flagship stores in Shanghai and Beijing and continue its with its current management team in Hochheim. The
move follows another PET-related acquisition by Krones
in earlier this year, in which the company acquired a 70
percent share in Switzerland-based Integrated Plastics
Systems AG in April. The Swiss company supplies turnkey
PET injection molding solutions for the beverage
industry. With more than 100 sites all over the world,
Krones has already established a global network. In
order to also provide the quickest possible service to
customers in the new machines business, Krones will
likewise expand its production to international sites.
While the administrative centre for the entire Krones
partnership with Chinese internet giant Tencent.It is also Group, as well as the assembly and development
working with local education departments, state schools
and private education providers in China to encourage centres for the filling, labelling, plastics technology
children to play with Lego as a way to boost their motor and process equipment are located in Germany, other
skills, creativity and attention spans. Competitors in China production facilities all over the world produce certain
include Barbie maker Mattel Inc. and Hasbro, the firm machines and lines, such as from the packaging and
behind My Little Pony. palletising technology division.

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