The Atlanta-based company behind the Super Soaker water gun and Nerf toy guns has been awarded nearly $73 million in royalties from toymaker Hasbro Inc., according to the law firm King & Spalding. Johnson Research and Development Co. and founder Lonnie Johnson have been in a royalty dispute with Hasbro since February, when the company filed a claim against the giant toy company. According to King & Spalding, which along with the A. Leigh Baier P.C. law firm represented Johnson, Hasbro underpaid royalties for the Nerf line toys from 2007 to 2012.
“In the arbitration we got everything we asked for,” said Atlanta attorney Leigh Baier. “The arbitrator ruled totally in Lonnie’s favor.” The attorney also said Johnson “is very pleased” with the outcome. Johnson could not be reached for comment Wednesday, nor could Pawtucket, RI.-based Hasbro. The arbitration agreement resolves a 2001 inventors dispute in which Hasbro agreed to pay Johnson royalties for products covered by his Nerf line of toys, specifically the N-Strike and Dart Tag brands, King & Spalding attorney Ben Easterlin said.
In a separate breach of contract suit filed in U.S. District Court in Atlanta in February, Johnson accuses Hasbro of violating a 1996 agreement to pay him Super Soaker royalties of 2 percent for “three-dimensional products” based on the appearance of the toy and 1 percent for “two-dimensional visual representations.” The suit says Hasbro sold water guns that were “visually similar and based upon the appearance of Super Soaker water guns that incorporate Johnson’s technology.” Johnson also wanted the court to force Hasbro to open its books to determine sales of Super Soaker products from 2006 to 2012.