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15 December 2014Patents

US Supreme Court revives Spider-Man patent spat

The US Supreme Court has agreed to hear a patent dispute between entertainment company Marvel and an inventor regarding royalty payments for a Spider-Man-themed toy.

The court’s decision to hear the case, announced on Friday (December 12), will reignite a long-running dispute that has seen both a district and appeals court rule in favour of Marvel.

Marvel, the licence holder for comics and films related to several superheroes including Spider-Man, and inventor Stephen Kimble have been at war for more than 20 years over the toy and the resulting royalty payments from sales.

In 1990, Kimble created and patented a Spider-Man toy that allowed users to shoot web-like material from the palm of their hands, mimicking the comic book hero’s spider-like qualities.

Marvel rejected Kimble’s proposal for the company to sell the toy and began producing and selling a similar product known as the Web Blaster.

In 1997, Kimble sued for patent infringement at the US District Court for the District of Arizona. Despite being unsuccessful on infringement grounds, he won a contractual claim and was awarded 3.5% royalties on past, present and future sales of the toy.

In 2001, following an appeal from both parties, a settlement was made whereby Marvel obtained the patent for more than $500,000 and offered Kimble royalties on sales worth 3%.

The Web Blaster was then expanded into further products after Marvel licensed it to toy producer Hasbro.

Believing a contract had been breached, Kimble sued again at the same Arizona district court, although Marvel claimed that royalties would no longer be due after the expiration of the patent in 2010.

The court agreed and, in July last year, the US Court of Appeals for the Ninth Circuit rejected Kimble’s appeal against the ruling.

The case bears relevance to the 1964 US Supreme Court ruling in Brulotte v Thys Co. In that case, the court ruled that, at the time that when patents expire, royalty payments to the holder of the patent must be no longer paid.

Marvel did not immediately respond to a request for comment.

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22 July 2013   A US court has ruled that the inventor of a Spider-Man toy cannot claim royalties from future sales of the product.
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31 March 2015   The US Supreme court will hear arguments today between entertainment company Marvel and inventor Stephen Kimble over a Spider-Man toy, in a case that should clarify for how long royalty payments based on patent use should be paid.