American Greetings derails DIC sale
By Staff -- Gifts and Dec, 6/20/2008 10:18:00 AM
CLEVELAND—American Greetings has obtained a temporary restraining order blocking today’s proposed sale of DIC Entertainment to Cookie Jar Entertainment.
According to American Greetings, 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 Strawberry Shortcake brand.
American Greetings entered into an agreement with DIC Entertainment in 2001 retaining DIC as its licensing and merchandising agent and distributor of certain entertainment for Strawberry Shortcake. To protect one of its primary intellectual property assets, American Greetings says it included certain key clauses in its agreement with DIC, one of which prohibits a sale to a competitor without American Greetings’ consent. American Greetings did not consent to the proposed sale of DIC to Cookie Jar, the company says.
According to American Greetings, it was open to discussions with Cookie Jar Entertainment about DIC's sale; however, the company says it was only contacted by Cookie Jar after Cookie Jar and DIC had already agreed in principle on the sale. The company says Cookie Jar and DIC “were not receptive to American Greetings’ overtures to try and gain its consent before signing.”
The injunction was granted by Judge Dick Ambrose in the Cuyahoga County, Ohio Court of Common Pleas in Cleveland.
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