Mattel, Inc. v. Realtoy International, Ltd.

MEMORANDUM **

This case arises out of a lawsuit involving the trade dress of Mattel, Inc. (“Mattel”) and Realtoy International, Limited’s (“Realtoy”) packaging of similar toy car products.

I

In 1998, Mattel discovered that Realtoy, a Hong Kong based business, was marketing products with packaging very similar to Hot Wheels packaging. On May 11, 1998, Mattel filed suit in the district court, seeking damages arising out of Realtoy’s sales of the “Action City Parking Garage” and other toys using packaging that infringed upon Mattel’s rights, as well as injunctive relief preventing further acts of infringement. The parties entered into a settlement and the district judge entered the Stipulated Final Judgment on December 16,1998.

On December 7, 2000, under the first suit’s case number, Mattel filed an ex parte application for an order to show cause why Realtoy should not be held in contempt. In its application, Mattel alleged that Realtoy, “in clear violation of the Judgment, continues to sell toy vehicle products that employ product packaging that is confusingly similar to the HOT *52 WHEELS packaging trade dress.” The court held a hearing on February 26, 2001, and denied the…