Wexler v. Hasbro, Inc.

District Court, S.D. New York·Decided March 11, 2022·No. 1:20-cv-01100·Unknown

Opinion

UNITED STATES DISTRICT COURT D DO AC TE # : F ILED: 3/11/20 22 SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------- X DAVID WEXLER, : : Plaintiff, : : 20-CV-1100 (VEC) -against- : : OPINION & ORDER : HASBRO, INC., : Defendant. : -------------------------------------------------------------- X VALERIE CAPRONI, United States District Judge: David Wexler, a toy inventor, has sued Hasbro, Inc. (“Hasbro”), alleging that the toy company unlawfully used two of his ideas without paying him royalties. Wexler asserted claims for breach of contract, misappropriation, unfair competition, and unjust enrichment. Hasbro moved for summary judgment. For the following reasons, Hasbro’s motion for summary judgment is GRANTED. BACKGROUND Wexler invents toys and games for a living.1 Pl. 56.1 Stmt., Dkt. 68 ¶ 206.2 Many professional toy inventors, including Wexler, pitch ideas to toy companies, in the hopes that a company will license and develop their proposal in return for royalties. Id. ¶¶ 217, 366, 368, 369. Hasbro, a global toy and game company, regularly meets with outside inventors who present their ideas to representatives from Hasbro’s Products Acquisitions department.3 Id. ¶¶ 1 Wexler became interested in the profession from his father, who has a longstanding career inventing toys and games, including the well-known game Connect 4. Resp., Dkt. 55 at 2. 2 There are two Rule 56.1 Statements cited in this Opinion. The Court refers to the Rule 56.1 Statement with Plaintiff’s rendition of the facts and Defendant’s responses as Pl. 56.1 Stmt. See Pl. 56.1 Stmt., Dkt. 68. The Court refers to the Rule 56.1 Statement with Defendant’s rendition of the facts and Plaintiff’s responses as Def. 56.1 Stmt. See Def. 56.1 Stmt., Dkt. 62. 3 The department was historically called “Inventor Relations.” Pl. 56.1 Stmt. ¶ 217 (Def. Resp.). 214, 217. At the end of each meeting, a Hasbro representative records the pitched ideas on an Inventor Review Record form and notes his or her disposition for each listed idea. Id. ¶¶ 333, 378; Def. 56.1 Stmt. ¶¶ 4, 6, 7. A disposition of “Pass” is an outright rejection. Def. 56.1 Stmt. ¶ 8. A disposition of “Hold/Send In” means that Hasbro may further consider the idea and will

keep or be provided with the materials presented at the meeting. Id. ¶ 9; Pl. 56.1 Stmt. ¶ 334, 338. And a disposition of “Inventor to do more work,” means just that: Hasbro may be willing to reconsider the idea in the future, after additional work by the inventor. Def. 56.1 Stmt. ¶ 10 (Pl. Resp.). In a series of meetings between 2007 and 2015, Wexler pitched various toy and game ideas to Hasbro. Pl. 56.1 Stmt. ¶¶ 228, 252, 254, 257, 259, 266, 267. One of the ideas, which Wexler alleges he pitched at each of the pertinent meetings, see id., was “a branded collection of combined games, each of which is controlled by Hasbro, and uses combined play pattern of the original games and the games’ names together as the name of the new product.” Resp., Dkt. 55 at 11. Wexler identified the collection with the slogan “Hasbro Presents . . . Mash-Ups . . . The

Classics Combined.” Pl. 56.1 Stmt. ¶ 240. At each of the meetings, Wexler presented illustrative examples of games that could be included in the collection.4 Id. ¶¶ 243, 244, 253, 255, 258, 260. Hasbro ultimately passed on the idea, including each of the pitched illustrative examples. Def. 56.1 Stmt., ¶¶ 38, 42, 45, 49, 52, 54.5 The Court will refer to Wexler’s proposed collection as the “Mash-Up Idea.”

4 Over the years, Wexler proposed several such examples, including Monopoly/Trouble, Sorry/Transformers, Jenga/Twister, Guess Who?/Memory, Candy Land/Chutes and Ladders, Connect 4/Scrabble, and Yahtzee/Boggle. Def. 56.1 Stmt., Dkt. 62 ¶ 146.

5 Hasbro initially marked some of the ideas as “Hold/Send In,” see Def. 56.1 Stmt. ¶¶ 38, 48–49, 53–54; Pl. 56.1 Stmt. ¶¶ 342, before eventually passing on them. At an April 30, 2015, meeting, separate from his Mash-Up Idea, Wexler pitched an idea for a game that would combine Connect 4 and Nerf.6 Pl. 56.1 Stmt. ¶ 270. Wexler described his proposal as “an action-based game with a play pattern derived from classic Connect 4 game play, where players use Nerf blasters and projectiles to shoot four in a row on a Connect 4 board

inspired grid on a vest.” Id. ¶ 271. Although the idea was initially marked “Hold/Send In” on the Inventor Review Record form, id. ¶ 343,7 Hasbro ultimately passed on the idea, Def. 56.1 Stmt. ¶ 66. The Court will refer to this idea as “Connect 4/Nerf.” Wexler contends that Hasbro later used both his Mash-Up Idea and his Connect/4 Nerf idea without paying him royalties. From 2019 to 2020, Hasbro sold a line of products under the name “game mash+ups” at Target. Def. 56.1 Stmt. ¶¶ 99, 129–131; Pl. 56.1 Stmt. ¶ 295. The products included the following game combinations: Monopoly/Jenga, Taboo/Speak Out, Guess Who?/Clue, Candy Land/Connect 4, Twister/Scrabble, Simon/Sorry!, The Game of Life/Trouble, and Operation/Perfection. Def. 56.1 Stmt. ¶¶ 129–131. Wexler agrees that he never proposed to Hasbro any of the specific combinations in the line of products sold at Target. Id. ¶¶ 146–147.

Additionally, in the fourth quarter of 2019, Hasbro began selling a game called “Connect 4 Blast!” Id. ¶ 141. The goal of the game is “to dislodge discs from a stand-alone Connect 4 grid by blasting Nerf projectiles at it.” Id. ¶ 145. Although Connect 4 Blast! was also sold at Target, it was not part of the “game mash+ups” line. Id. ¶¶ 102, 142.

6 For the unacquainted, Connect 4 requires players to take turns placing discs in a grid, to achieve the ultimate goal of four discs in a row. “Nerf” refers to a type of soft foam rubber used to make a variety of toys, including projectiles that are shot from Nerf brand “blasters.”

7 The form itself does not mention Nerf. It lists the item as “Connect 4” and includes the description “Ip based account connect 4. 4 heroes that come together to help the world with evil.” Inventor Review Record, Dkt. 53-7 at 1. But despite that somewhat convoluted submission description, the parties agree that Wexler’s Connect 4/Nerf idea was presented at the April 30, 2015 meeting. Def. 56.1 Stmt. ¶ 57; Pl. 56.1 Stmt. ¶ 270. Wexler sued Hasbro for breach of implied contract, misappropriation, unfair competition, and unjust enrichment. Compl., Dkt. 1 ¶¶ 79–90, 98–114.8 Following discovery,9 Hasbro moved for summary judgment on all claims, see Not. of Mot., Dkt. 46, and Wexler opposed, see Resp., Dkt. 55.

LEGAL STANDARD Summary judgment is appropriate when “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). “Where the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party, there is no genuine issue for trial.” Scott v. Harris, 550 U.S. 372, 380 (2007) (internal quotation marks omitted) (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986)). To defeat summary judgment, the nonmoving party must come forward with “specific facts showing that there is a genuine issue for trial.” Sista v. CDC IXIS N. Am., Inc., 445 F.3d 161, 169 (2d Cir. 2006). Courts “construe the facts in the light most favorable to the nonmoving party

and resolve all ambiguities and draw all reasonable inferences against the movant.” Delaney v. Bank of Am.

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Wexler v. Hasbro, Inc., (S.D.N.Y. 2022).

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