Court Blocks DIC Entertainment Sale to Cookie Jar
2008-06-20 19:02:09 -
- Dan Klores Communications Jeffrey Klein, 212-981-5189 jeff_klein@dkcnews.com American Greetings Corporation (NYSE:AM) announced today that it has obtained a temporary restraining order blocking the proposed sale of DIC Entertainment to Cookie Jar Entertainment. The injunction recognized that the sale could violate American Greetings' rights as the owner of Strawberry Shortcake, as set forth in its agreement with DIC Entertainment. The claim raises concerns that the sale, and the unauthorized transfer of rights, could cause irreparable damage to the popular Strawberry Shortcake brand.
The injunction was granted by Judge Dick Ambrose in the Cuyahoga County, Ohio Court of Common Pleas in Cleveland, Ohio.
American Greetings entered into an agreement with DIC Entertainment in 2001. American Greetings, the owner of Strawberry Shortcake, retained DIC as its licensing and merchandising agent and distributor of certain entertainment for Strawberry Shortcake. To protect one of its greatest intellectual property assets, American Greetings included certain key clauses in its agreement with DIC. The Agreement prohibits a sale to a competitor without American Greetings' consent. American Greetings did not consent to the proposed sale of DIC to Cookie Jar.
According to American Greetings, it was open to discussions with Cookie Jar Entertainment; however, it was only contacted by Cookie Jar after Cookie Jar and DIC had already agreed in principle on the sale. Cookie Jar and DIC were not receptive to American Greetings' overtures to try and gain its consent before signing.
About American Greetings Properties
American Greetings Properties (AGP) is the intellectual property and outbound licensing division of American Greetings Corporation. Built upon the successful re-launches of Care Bears and Strawberry Shortcake licensed products, which have garnered nearly $5 billion in retail sales worldwide combined since 2002, AGP develops multi-platform campaigns for its properties through digital media, entertainment, marketing and merchandising. In addition to Care Bears and Strawberry Shortcake, AGP's active classic brands include Holly Hobbie and Madballs, as well as new properties Sushi Pack, Twisted Whiskers, Maryoku Yummy and TinPo. Children can experience AGP online at www.agkidzone.com. For more information on AGP, visit www.agpbrands.com
About American Greetings Corporation
American Greetings Corporation (NYSE: AM) is one of the world's largest manufacturers of social expression products. Along with greeting cards, its product lines include gift wrap, party goods, stationery, calendars, ornaments and electronic greetings. Located in Cleveland, Ohio, American Greetings generates revenue of approximately $1.8 billion. For more information on the Company, visit corporate.americangreetings.com.
Restraining Order Says Sale Violates American Greetings' Rights
