March 24, 2005

Construction toymaker expanding in Germany

MONTREAL

Toymaker Mega Bloks Inc. says it will expand its product sales in Germany in the wake of a patent loss by rival Lego in the European country.

Mega Bloks said Monday the German Patent and Trademark Office has decided to cancel a toy block design trademark for an affiliate of the Lego group of companies.

The decision was issued Feb. 2 after a petition filed by Best-Lock (Europe) Ltd., another toy manufacturer.

Mega Bloks said the ruling invalidated Lego’s patent registration for a three-dimensional interlocking toy block which is manufactured by many companies, including the Montreal toymaker.

Lego may appeal the Feb. 2 decision, Mega Bloks said.

“With this latest development, Mega Bloks intends to launch its complete range of construction toys in Germany,” said Marc Bertrand, the company’s president and CEO. “We look forward to leveraging our many strengths to broaden our presence in Germany now that the legal barriers have been cleared away.’’

Mega Bloks estimates that the German construction toy market is worth about $250 million (U.S.) a year.

Mega Bloks, with about 1,000 employees, makes children’s construction toys.

The Canadian Press

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