Toy firm’s US payout tops $17m

A New Zealand-founded toy maker has won a multimillion-dollar payout against a copycat in the United States.

A Texas jury found US company Telebrands infringed on Zuru’s patented water-balloon filling toy, and awarded US$12.25 million (NZ$17.8m) in lost profits and royalty damages to Zuru.

Zuru’s Bunch O Balloons filled 100 water balloons simultaneously through a hose attachment and detachable straws.

The product was invented by Texan man Josh Malone in 2014 and he licensed the product to Zuru in August that year.

James & Wells associate Se´ bastien Aymeric said patent litigation was notoriously expensive in the US. ‘‘It’s an unbelievably complex area of law, but if legal action can protect your business for the future it’s worth it.’’

Zuru was founded in Cambridge, New Zealand, but has grown to employ more than 400 staff in its 10 offices around the world and retails to 121 countries.

It has reportedly contributed millions of dollars to Malone’s water-balloon product.

Telebrands and its subsidiary, Bulbhead.com, began selling similar products in late 2014, eventually making it into Bed Bath & Beyond, and Walmart stores.

Records show Telebrands has been sued many times over intellectual property rights since it was founded in 1983.

Zuru chief operating officer Anna Mowbray said: ‘‘We are committed to continuously fighting what we believe are knock-off companies like Telebrands who try to undercut inventors.’’

She said the company expected future damages awarded beyond the US$12.25m based on findings of Telebrands’ ‘‘willful misconduct’’.

Telebrands did not respond to requests for comment.