19SMCV01209 Electronically FILED by Superior Court of California, County of Los Angeles on 07/03/2019 11:16 AM Sherri R. Carter, Executive Officer/Clerk of Court, by M. Mariscal,Deputy Clerk Assigned for all purposes to: Santa Monica Courthouse, Judicial Officer: H. Ford III 13ryan,l. I rccdman (SI)N 15 I I)90) 131'nclll: bit'CCdinlln(I7l it(I l').Coul Jesse A. I(aplan (SI3N 255059J I')mail: iltai)lan(rttftllp.corn Ad&1m N. PuglltCh (SI3N 293556) mail:anuuatch(II)I'Ilh).corn IIRI;I:,OMAN -I 'I'Al'I'I I.MAN, Avtnlue ol'thc Stars, Suite 500 I.os Angeles, California 90067 'I"elcphonc: 310-201-0005 I I.I.I'901 Facsimile: 310-201-0045 .1. I cldman (SIIN 173)383) I'.mail: ml'eklnl&ln(fill'clnlcslclw.coul Robert M. Shore (SI)N 166018) I;nlclll: I'shoi'c(fI&i'cllncslaw.cool RAINI S FI LDIMAN I.I.P 1800 Avcnuc OI'Ihc Stars, 12th Floor l,os Angclcs. Calil'ornici 90067 Miles 10 'I'elcphonc: (310) 440-4100 Facsimile: (424) 23')-2657 12 Attol'ncvs fol'lalntl IT I lclTlclc 13 Pl'ocltlcl tons„ I.I.C SUI'ERIOR COUR'I'F TIIE STATE OF CALII'ORNIA 14 FOR 'I IIE COUNTY OF LOS AN(:ELES — WES f,IUDICIAI. DISTRIC'I' 15 16 II;RRICI& PROI)UC'1'IONS, I.I.C. a Delaware limited liabl! Ity company., C Unlimited Civil Case d $ 75,000 PlaintilT, 17 risc No.: D vs, COMPLAINT FOR: 19 70 MA I 3 131, INC.. a Dclawcll'c col'Porallon, and DOI:,S I through 10, 21 DCfCntlcu'ltS. 1. BRf&.ACII OI'MPLII&".D CONTRACT; 2. 13RF.ACII Ofc CONI& ll)lr.N('ll.; 3. FRAUD; AND 4. TRADE SISCRET MISAI'PROPRIATION 77 75 26 27 I COMPLAINT Plaintiff'I h:rrick Productions, I,I C f'I II& )k against defendant Ma!tel, Inc. f"Mat(of"3, Bnd Does Dcfen(fants allcgcs thc I'allowing causes of action I through 10, inclusive fcoflcctively, 3: INTIZOI)IICTION 'I'his nlaucl'nvolves t)rfattcf l. I II Io s partic]pate in production of'Ihc show / idea theft cltld bl'each ol tu) a))plied contrac1 with /cgvtr&)/(er» vvllh I ll . Qnd Maucl's fraud designed to keep 111'itting on thc sidclincs while Mattcl rushed to markc1. /'/&Iyrncr/(er» is Qn unscriptcd tclcvision show where invenIors pitch their toys to child judges for evaluation with the goal of reaching thc finale. j scrlcs, Lhe winner 01 11)c lnltllc rcccivcs pri/c Blooey and a contract for sponsol'f'hc pl'0(fltcLIOB of'tl'lc 10 11)c O'Qs 'Lo to)s MatLcl vvas bc 10 Ica1LB'(c(f pl'OtrltncnLJV cls thc cxclilslve tov bc 101Blly in1cgl'cite(1 into thc shov&'nd Lvollld nlanilf cl(.'ILB'c 'thc winnct' grand prize for thc winning toy inventor, Instead, Mattcl produced /3ox without I IP in brcach of its contract. Mattel took I Lhe show cts ll's ideas, breached its oblig&ations to include I II, Bnd pl'oduced the show under anoIher title as 77)e To) /3ox causing& financial 15 damages to I-IP. 'I'o preven1 I IP 10) lying tts continued interest in working vvllh I IP. Blx)LIL rom beating& Mattcl to mtlrket, Mat!el strung along by I-IP COMlVION ALLI."C."ATIONS 17 2. I ICITIC1C I I'Od(ICIIOBS& LI,C, IS. QBCl tll «ill LBTICS I'CICVLIOI hCI&eul WQS, '&I DCJQVL'clt'C 19 limited liabilit)'onlp'lny with its principal place ol'business in J)oca 13aton, I lorida. 20 I'rcduCtiOnS, I.I.C. and any pl'L'dCCCSSOI'n lntCI'CSL 3. 21 77 IM<tcf ts. &u'Id BI f)l'inCiPcll Plc)CC 01 buSIBCSS tn 23 4. Thc wl'ongf ill cu'C I'CfeITed 10 nfl 1)nl('s Iclcvcult hct'ctn was, 11'IC Cola)LV 01 clccs bv Lhc I OS B «)S Ill I)( Iclw'll'e col'J')ol llton v'ith its AngCJCS. SLQIC Of CBJIJOI'nltl. Def'endanIs, Qnd cclcl'I ol 11)cnl. clllcgcd herein occurred in thc County of Los Angeles, State 75 thc P/(r)&m(r/(er» ideas were presented and taken in breach of'the agrccmcnt, 76 S. as the of Calif'ornia whcrc the agrcenucnt was cntcrcd 111's inf'ormcd and bclicvcs partncl'nd/ol'tuthorized agents th&11 till Dcl'ctlclants wcl'c clcttng Bnd/01'cull)loy'CL's conspllcltot's of clif othcl'(',lcndants, v'1th Iferrick . 74 27 cls 7'he 7b)r 14 I n)y &lnd I'clcvBBL tin)as tuld/ol'olnt vcntllltct's (tuel/or co- Lhc ILII! 1(noMilccl(!c of eclch COMI&L.AIN'L' clt Bll in10, Dcfcnclant, s &lets told 001issions& as alleged herein, and that cclch 1)efendant rati lied e:Ich and every act clad/ol 7 001ISSIOB Ol L.'BCh cu1CI 6, 3 I CVCI')'thel'C I Cadent, I!'s currently unaware of additional responsible in sonic 01Bnncl'101'hc t&cli(f sought herein. Should ln son1e snug&ht I'ncinnci'ol'hc herein, desi&¬ed persons or entities that n)ight he lcg&all) on'lissions and 1he damag&cs allcg&cd or other 0011sslons dcscl113ed hci'cnl, «01d/or thc damag&es or o1hcr rchcl clc1s cu)d will amend 1his Compl'lint to add any and all such Dcfcndiuits& who alic I thl'0Llgh 10, lnclL!sivc, I II'l leg&«s that th('. Dcl'cndcu1ts to this action werc 1he a11er egos ol'onc cu101hci', and 1hci'c exists, mcntioncd has existed, 12 herein. II'ater discover inl'oilfla'Liol'11hat sLlggcs1s others are rcsponsiblc I&pon ll'llol'01Btion and belief, 7. 9 10 I-IP I acLs Bnd/of this time onl)'cls Docs «It BS clllCg&ed B LB1ity ol'interest and ovvncl'ship 13ctwc('0 '1llcl Bt 'BI clll times iiclativc 'lll times herein Bnd Bnlol'Ig thc D«lend'nits such that any separatcncss has cctised to exist. Venue in Ihis Court is proper pursuant. 8. gcction 3 )6 01 that& Lo Calilornia Code of Civil I'roccdulic «anon!'1hcl'hnlgs. thc vvl'ongltll (lets llllcg('d hcl'cnl occ(BTcd nl I.os Angeles County, Calit'ornia. 9. 16 17 cntcf talon)cnt 1&9 19 20 I child lcrrick Productions, LI 10111)BL known / Bs 10. /'/«i m«/(e&'» Is judg&cs for evaluation with /(0&Inc(/R&&re (ul Lulscl'ipicd Lhe 11. I-IP tclcvision show whcl'c nlvci'lioi's 1)ncl'I Ihcil'o) s 10 goal ol'reaching 1hc linalc. Thc winner 1)cceivcs prixc money and a coniract for production 21 is thc owner ol'all rights concerning& a i)cality C& ol'he toy. invested substantial time and money in obtaining these rights. in I'urther 27 developing& and protecting the concept, and in preparation of pitching /'/(iymu/(er» to U.S. 3 nctwol'ks& potential pBI'Inci's& Bnd 1311vcl's 10 ol)tain B pl'od(lctlon order. I IP also hilcl a 2«t )5 26 27 development I a&&recmcn1 with The CW and a production services agreement with Rg3 I'od(lctlons. Inc. 12. Ihc cxcILislvc I-IP was looking 10 I'3al'tuel'ith a toy company in producin&g 10)'ponsoi'u)d/01'hc 01BBL!fclcILuci'f thc toys. COMI&L..ALN'I' /'/(01II(&/(e&» and as 'I'hc inclividuals «I'liliatcd with IP who intcracted with ivlattel incluilcd Norton 13. I I I icrriclc ("I lcrriclc') (who was and is I II"s managing member), Phil (furin ("(fttritf'). «nd Pilar cle Posadiis ("dc I'osad«s"). Ill'ontacted Mattcl and 14. 4 iccached an agreement vvhcrcby I IP agrccd io confidentially sharc information and all their ideas as to how to produce: MLL1tcl 7 P/cki n»&le!» Lvith and in exchange Mattcl would lceep thc ideas confidential and participa1e in thc show nilly with I II . 15. Mattcl breached its conti'clc1 vvith 1-11'o lceep the iclcas confidential ancl did itot produce I'IOJ»»oke&» with I IP. Instead, Mattcl used Ill" s ideas, given as conditional considera1ion to Mattel in exclcaltg&c for Mattel's ag&rccmcnt to produce the show only with I ill)cl f pl'odilccd thc aflow 16. 12 f ) 7/re 1'OJ& Llt)elec the title '/'Iie T»J& I-IP, /3o» v;i1h Llllotllcl'iltltv. /3»» is an AI3C unscripted television scrics that piccmierccf on or iibout Af)i'll 7, 2017, ihcl'eby first providing notice to 111'l'Mtittcl's brut)eh and other misconduct. 'I'hc show depicts toy inventors as they present toys to chilcl judges Ior cvaluiition and I 5 aclvililcclitci11 to 1hc Ililillc, I he sc",asoll s Lvii1lliilg toy is thci1 pfocILlccd alld dis1ributed by Mattcl. 17 17. On or about June Ig IS. Ill 'f 9 20 16& 2017. AIJC renewed the scrics for a second season. ol'il'oillld April or iVIay 2014. a inceLillg was LLITallgccl Iol'II'nd iMattel to cfiScilSS I ICIJ'llicikLILL. ICJ. 'I'hrough Gurin, I-II'liscussed thc I'acc-to-face meeting with iVlattcl's Vice- ol'4 I'resident Communications, .Iulia I'istor, and discussed disclosures in advance of the mcctin 27 20. Mattel was provided a written Confidential Notice by I IP prior to inception of the first in-person meeting. 'Ihe notice picccedcd confldcllilaf docclinci'its Ircgal'clilig 25 collditio&lect olt I'Ic!J&»)Like!'» thc opening of a piicl)ct m«l in clear that disclosuicc ol'I'Ic(J)»»ke&» was Mattel's conlidentiality, Since. Mattel was required to keep thc disclosure confidential, it could not usc the informa1ion disclosed 27 thi." ol'it . The ColliidcnLial No1ice stated: C onficlcntial Notice 4 COML&l,&VLN 1 Lo produce the show with anyone clsc. Pl'opci'il'I'IIIS IS A OONI'IDEN'I'IAL MEMORANDUM (1he '"Mcmoi"indLBI& ') intended solely for your own limited usc to detcrminc whether you wish express any lurther interest in thc '"I roperty". 0& itis Mcn10('BlidLInl cont(tins bl'icf„sclccIcd Inlol'n&BIion pcl'Iaining 10 caid cll fail's of 11'ic I I'0Pcl'tys I his Mcnioi'cuicILB&& docs not PI'OPosc 10 bc cill-inclusive nor does it contain all thc infois&&attn&1. Lvhich a lnospective invcstoi'&ay desire. We do not alake Bny''cpicscnlatiol'is 0(. warranty, expressed or inlplicd, as to thc accuracy or cot&&plctcness ol this Memorandum or any of i1s contents, and no legal liability is assumed or is to be implied by any ol'thc aforementioned with respect thereto. thl„'LIsincss I your i&cccipi of the ivlcmorandum, you agrcc 1hat this Memorandum and infortnation contained herein is of cl sti'ic1 conlldciliIBI n&atLB'e Bi'id y'ou will n01 disclose ibis IVIcnlol'andLun 01'ai'Iy'cu"1 of lhc col&1&„'nts 10 Bny II'lii OI'ut it'v vvitlioil1 0(u'i'101'&i'l1'Icn cILII hot'Ization. 13y 111c 01hci'('.I'son, I 10 12 If you do not vvish to pursue this matter or if we advise you for any reason whatsoever to return this Memorandum, you agree that you will promptly return this memorandum to us. I'hotocopying or other duplication is not authorized. I hiS Mcn10I cindLun Shall noi bc dCCi Bed iu1 indication Ol tl'IC Stet'tC Of ITcui'S of ihe I'ropcriy, nor shall i1 constitute an indication that there has been no change in the business or affiiirs of the Property since tl&c date of preparation of this Mcnlofancl(n&1. 11 Ol'hiS IVfcnloriuld((11& 10 yo(l ClOCS not Iioi'S it intendCd to create any rights in your Ihvor in conncc1ion &vith the I'ropcrty, including, v&ithout limitation, the acqLIisition of the I'roperty. Any such rights cu&d obli(!ations v'ill only be c1'ccited by a written document executed by 1hc pcu'ty to be boi.ii'Icl thci'cundcit OLB'!ISSCOIInci'lion 16 17 Through.lulia Pistor, Mattel accepted thc meeting on the terms set lorth 21. 20 in ihc writ t&.'n Oonfidcntial Notice. In iVlay 2014. also prior to thc first meeting&. through .Iulia I'istor. M'ittcl 21 rcqucstcd and I ll'ejected an onerous Non-Disclosure Agrecmcnt ("iUDA") which nici&'iivc given Mattel control of HP's submissions cutd idecis exchanged in the meeting. 'I'h(. proposed NDA that 25 27 I-IP rejected specifically states: 4. SIMILAR SUI3MITl ED IDI'.AS. Vendor rcco nixes 1hat: (a) iVlattel has B n(n&lbei'l pi'Od(icts sold Laid('I' vcu'ic1y ol'rands (collectively, "Mattcl Products" ), and (b) Mattcl has developed. «nd Mattel has sL(ggL'siccl to it by third parties, many i&less, mBIcrials, products, concepts. and tcchniqucs relating 1o Mattel Products. Accordingly, Vendor recognizes thai any ideas, materials, products, concepts. and 1echniques that Vendor might disclose to Mattel, whcnevcr and however disclosed, including without limitation, COMPI AIN'I' pitch nlBLcl'tells. so-ceil lccl Icavc bchincf 111Btcl'ials'. scripts. stories. stofyboarcls, liov cftarts. catch wol'cls, Iucssagcs& Lag fuses& htcl'cu') 01atcl'Icll& chai'&lctcl'!I, pcrsonalitics. chalogLIc, Lcxf& then les. f1lots, titles, conlpos(1ions& muSiC, SOundS, StOrylinCS, inVenLiOnS. dCSi&&nS, SkCLChCS, cu'tWOI'IC, nlodCIS. Bncf Lvi'Ittcll. 01'1'Bl SLiggcstiol'Is (silch sunilBI'nd identical Idcasc 01atcl'lais. conccf11s, Bncl techniques collectively, "Similar Submittccf Materiiils"). aitc 10 12 Vcnclol'gi'ccs 9 likely to bc similar or identical to, in whole or in part, and ma) compctc with some such dcvelopcd and suggested ideas, ITI(11ci'ials, pi'oclLIcts& concepts, iusd techniques. Vendor thercf'ore ag&rees that: (i) no submission by it to Mattel ol'imilar Submitted Materials (in any form and however idcntificd or mcnked by Vendor, regardless of whether Mattcl objects to any such identification ormarkingf Is 01cicle ln conlidcncc ol'cinstitutcs Vendor's confidcnticif information, and (fij no cxPress or imPlied obligation ol any kind. including cmy payment obligations f'r the use 01'such Similar Submittccl Miitcrials, is assumed by iVlattcl with respect thereto unless Bnd until a subs(quent wntten «sg&rccmcnt is cxccuted and delivered (II'at (ill) by Mattcl cutcl Vencloi', Bnd then thc obligations ol Mattel (vill bc only those sct I'orth in the v ii1ten agreemcnt. Vendor I'urthcr agrees that: (A) !Vfattef has no obligation to disclose to it Lhc existence of'any similar or identical ideas, concepts, or materials that are developed or received by Mcittcl& 'cu1d (I3) MB11cl cfocs lt01 cisstu11c Bny oblig&ation, cxprcss or impliccf, in connection v ith Mattel's non-disclosure of thc cxistcnce of them. Vendor hereby I'ci'ioLnlccs, Bnd itgrccs to I'clloLB1cc, culy claim thiit Mattcl mis&ippropriatcd cuiy non" cop)'I'Ightable Bnd/or non"patcntQble Iclecls oi'onccp1s, cu'Icf I.hat «u1v clBinl that Mattcl hcls Llsccl Vcncfoi' Sintilar Submitted Materials& or any element thereof, must be brought exclusively un(ler the Patent and Copyright Laws ol'he Uni1ed States, 14 23. In May 2014, Ill', through Gurin, rcjcctcd this proposed NDA prior to the loi'IP conlidenLIBIIIv wcis of'thc 01ccting. 16 meeting bcc«itisc 17 I'(Jcctlon ol 1his NDA 18& confidential or no meeting vvould talce place. Maitel. throug&h I'istor. 19 without thc NDA 20 used withOLlt HI' 24. 22 Qnd Mci'Ltcl I'ccILIII'enicn1 was noiiliccl thai HI 'I hi'0(igh I IP's s Icfccisw('.I'c iis 0(vli Bnd n1Llst bc Iccpi. ag&reed to thc mccting& understood that I II" s ideas must i(cmain confidential and could not bc participation. While Mattcl was free to reject the concept proposed by I IP and not pcu'ticipatc, Mattcl was not free to undertake thc idea without I-IP, iMattel agrccd that details of'the format and all ideas 24 Li conticlcntlcll cvcn II I ll'ould divulg&e the f'r Pla)&make! s and that Mattcl would keep the concept MBncl chose noi 10 participate in I Ia)&II!akcl'5 cuscl Bgl'eccl Lo attend Lhc I-II'7 01cciings (vith I IP with thcsc conditions in place. 26 25. I3cforc thC 01ccLlng toolc place, Ma'Ltcl with the understanding that 28 I-IP Lulclci'SLOOCI cuicf clgl'ccd to mcct with had the exclusive I'ormat rights to Plcr)&make!,1 and Mattcl was to kccp the idea confidential and could not use the iden 6 COMI&L&(li&I'I' of Pla)&makers without I-IP. I lowever, Ivfatlcl did not lcccp thcsc promises. Mattcl wanted Its cntilc 6. with 4 I-IV Lc'alii pl'cscnt rli cl frace Lo trice Iiicctlng& on .I Laic 30. 2014. rea&arding P/aI&ma/cel'», The meeting was attended by the following six Mattel cxccLltlvcs officers lvho acccptccl the culcf 'I'im l(ilpin Dave Voss -— — f! VP, 13oys Lci111s sc1 foi'th by IIP. and Girls Brands Global Marl eting, SVP. I'layground Productions Julia Pistor -- lgxccutivc I'roduccr. Play round I'roductlons 8 I'..f. I,CV, iS — SeniOr DireCtOr GIOllal GBnlCS () I-lolly Stein — VP, I.icensing Acquisition 10 I.isa Strom — VP, Girls Creative 11 27. 17 I Ilerricfc& 13l'cniCf Marl(Cting& Dcsig&n Gurin, and dc I'osadas p'irticipatcd in the.lunc 30, 2014, meeting I'or IP. I ll Blade clccu'l'olil Ius cnirnls, w'lnncn I'lolicc, Bcliolls, Blld .'ItatcirlcliLs tlicll 'ihc nlloilnalion being relayed was "conlldcnlicll 'Ill«lt clisclosurc ol'thc, details rcspectin« /'/aJ&»Biker» was conditioned on Ma1tcl's conlldentiality and potential par1icipation with I IP in thc project. Mattel knew or should have intown of that condition and, in turn, Mattcl's six cxccuiivcs listed above voluntarily accepted f / cclnf!dcntiiality I() V/OJ&»lcl/«el » 70 lol'liiat Biicl II 's /'/aJ'n»l/(el'» inl'ormation with I&now!Ccfgc ol'h&'equiircd poicniicl! pcuancl'slilp by p«u'ticipatioli in thc niccIing, ()Bfy alter Matte! Ltcccptcd thc condition that to usc thc clctails 28. 18 cuicl I it must r& spccting participate with I IP, did I lerrick disclose the details ol'tile /'/aJll»akei» cxplclin I IP's ideas respecting the potcn1ial tclcvision series based thereon to Mattcl. 9. 22 I'riot'o cnicf Bt Lhc should Mattel participate, I time ol'cfisc:losure, it was well uliclcl'stoocf bv tile pcnties thai ll'vould receive compensation for its ideas. I I I'oulcl produce fluid the allow «lnd integrate Mattel into the show. Mattcl would rcccive an increase in toy 74 Biicl 75 sales Slid exposure to help push Ma1tel once again to bc the I/I toy nlanilfac'Liu'cl'/distribu1or in the world. 77 78 30. On Mciitcl s I hC flcll'IICS cilSO hciCI coiifldCliiirllitv cmd Ill «I S niLI1LIBI LnldCI'Stcuiding that thC diSCIOSBIC pen(i(.'ipallon ni 111C 7 COMPEL.lL IN'I' project. WLIS COBClitlonCd At thc mccting, with a bilateral understanding regarding disclosure agreed upon, 31. I IP provided Maltcl with a demo reel and clocumenls lrcgalding Plat&mal&er» pl'ovlcl lag lhc wi'lllcn Conllclcntlcll 1&foticc Allci'hc 32. lu'sl. Olcclnlf&. I I B.'I «I P Lvlls covcl'hcct lo lhc LvritteIT including nlatcdals. nllol'Irlccf bv IVIancl s 13u'c'ciois I.iccnsulg Acquisitions, I lollic I-lolmes, lhat PIa1&rrraker» was 'n thc "very top" of thc Matlcl org&anix;ltion being discussed 6 chief'executives ancl thai Mattcl wanted to move I'orwcnd. Shoi'tly aller 33. I'ol low-up &vith th«11 cclll, Mciltcl s Vl ConlniLullcatiolus, .Iulia I'istor. also sct a call luld later requcstcd a further meetingregarcling PI&&1 ilier/«.I». Sbc inlolnllccl I IP that shc was imolvin Mattel's then Chief Brand OI'liccr. Richard Dickson (now Mattcl 9 President and Chief Operating Ofiiccr), so I-II'ould 10 rctLB11 Bnd decision-malccrs.'atlcl rcqucsted specific changes in the discuss thc project "vvith lccy PDI'lrcscntalion made to it„ 17 showing that Mattcl had carefully sttidicd and analyzed lhe ideas I'c,gcu'ding the whole shov and 13 its acts, On Scptcmbc:r 5, 2014. HP mct again with several key persons at Mattcl in 34. Scgundo, (.'Blifornicl to discuss /'Iafrrria/&er». I'hat meeting& clncf/ol'x&.'cLulvcs& lnclLldil'lg: 16 Richen'd Dickson — thcnl Chief Hl"culds Oflicer 17 lg . LI'nl Cheat — &VP, I'nlanCC «uld Stl'cileglC Plculnulg 19 I-Iollic I-Iolmes — Director, Liccnsin&& Acquisitions 20 dclp l(orchek — VP. AGC 13usincss and 7] I:;velyn Mazzocco — SVP, Global Brands Crcativc 22 .I I IIIB l,eg&al AITairs .Icnscn — Vl', ConlnlLullcatiol'Is .Iulia I'istor — VP, Playground I'roductions 24 Gary Swisher — SVP, Global Hrlulds Creative 75 Doug Wadlcigh — SVI', Boys Global Marketing 26 I 27 Lvas attcl'lclcd by C'CAnn Wong -- VI IBVCnlof RelclttonS — & Michael Shore — Vl'. Global ConsluTlcl'lsl 'hts 2&g ff COMPLAINT clelcn IVlattcl 11 ofiiccrs /vt no time did Mattel disclose that it 55. v&as o1hers. 'I'o thc contrary. Mattcl communicated cvcitcd about thc ncw idea «md involved in th«11. similar project presented b) '1 ncv'dc'1 and lonnat and (vas it loved thc also w«lilicdl u) discuss partncring with I II'o produce movies 1hat fcaturcd iVIattcl s toys. On 01'130iii Septel)113cl', 2014, Maucl s 36. 6 1101111es 1hankcd I Ieirick advised that I lp s business aITairs attoniey should start discussing th&. Iol'hc iilcc11ng «111d project vvith MatteI's .ICIT I&orchck, 'I'hcy discussed ihe project and IS.orchck st«(Lcd thilt hc was goillg 10 discuss 1he projci;1 with Dickson. Discussions went on bctwccn 57. 10 and Mattel about the project and included specilics about IIP having distribution rii&hts, rccciving sponsorship, integration, and product-placcmcnt of sales fi'onl thc 01011ics, Bs well «is ii pci'ccniBgc 17 I-IP I-II'iscussed v'ith Mat tel that gg. 11ssociatcd v&1th th&". 1-11's 111Biliifactiuvcd compensation would inciiidc 'W)1111(ili'ov Ii'oin cvcl'v seas&311 ol'hc busi lie!is each &i(id oiiiel'B1tcl toys 14 pci'ccilti1gc el 0(vnci'ship 15 the value 01'production ol'the show and tape/forma1 s«iles 16 sponsor integ&ra1ioii: its prolits Iron) distributioii; 17 B11CI/01'Old by LMBLLCI; Ig and websitc at cig&ht tii11cs 19 vvcl3siie coil'11)a)1y'ilclilcli(1g& 20 ol'«ill cpisodcs after airing on the networks, tutoriiils 71 BI1d Bll 'Lhc Loys 72 con1pan Les. 25 50. 74 for 75 ag&rc&nng u) 76 reasonable v«ilue expected I'or usc oi'the ideas, 27 40. Llt 111vcilt(11 '1 pi'csciltcd [)ci'ccniagc of f&'«1'i(i(&ed 01'1 'Lhc pi'cscniii1g oli Lhc show "0111g 01 «111 siilcs shovv: l(31'(( «0'ck «uid 01 '1ny I other i Le(its IP's ultimate manufactured s«llc of its 'I'V series cash Ilovv Irom thc 'I'V series 'ind ten times cash Iloiv I'or the sale ol its 11s Bpf). 011 1hc I hc wc13site con1p«ulv woii!0 have show. 11 of the toys ol'1 11s wcb.'itic thc Bii'111g& Bnd inventors buildin«& the toys, v'ould have sales Blld co-131'Bnding with oth(n Bise business transaction only alter Mattel voluntainly accepted the disclosuisc ol' II's id( is bv th«it I «1 thc sho&v; value of product and percentage rcvcnuc lrom spinoITs and sequclsi B IP pi&epare&1 the presentation for thc meeting with ivlattel. disclosed thc work 1o ivlattc! I «i 01 toys rclatcd to the series. thc (11cctiiig knowing thc coiidlitioiis IP wBs I!11el'0101311cd by iMattcl thai 1'I 011 w'hich thc iclcas wci'c tel)de(&eel w«is not gonig to 1110vc foi'w«u'd 1111CI thi: with thc project time because Mattcl had a poor linancial period, but v&ould Ict IP know when thi(1(',s I ] chcu1gccl. Despltcihc Bgi'ecn1cn1. Ma'ttcl pl'oniptly nlovccf 41. 3 although I II haS bCCB CfcurlagCd proceeded with 11 /'/(Iy777((kr bCCBLISC 7.» Mat tCI w'iil'ioLII hclS noi gonC lol'V&'cu'CI VViih I II . BS 171'001ISCCI„ and took I IP s Ideas in breach of thc iigrecmcnt. entitled to thc compensation that Mattel agreccl II lhc project notifying I-ll'aid in bl'cclch of thc clgl'ecnlcnt wl1hoii1 con1pcnsating I IP. 42, 7 folnv&11'ci 'Lvlth I II's I-II'ould rcccive if the 17rojcct moved forward„ including without limit<ion a percentage of thc show s profits, sponsorship rcveniie. intcgrii1ion 'ccs. Iccbilte IccvcnL!c& intel'national stiles of loi'nlats Bncf Iiipcs, B pcl'ccn1age of all sales associated (I v ith the winning toy I'I'onl evci'v scBson clncl oihet'10vs fca1LB&ccl on 1hc sho'(v, (I pcl'ccniBgc of 10 ownL'I'ship ol 1hc 13Llsnlcss ol eacl'I nlvcnL01''ll'csci'Iinlg on lhc shoiv L!on'i!& revenue h'on1 fol"Lvai'cl. 11 splnoffs, 13 &ll'ICI cuiV B c'll f let'cei'Itclgc of websilc/c'lpp I'c'vcnLIc Bncl 1hc. veil(le (I&'or 43. 16 I 7 pa!'Bgl"clphs 44. s LIIIIB1cltc sale of i1s I V scrics fihcltCCI '(VC17SILC Bn(f/Or clPP. PIICST CAUSE 15 of I IP ACTION Breach of Implied Contract Against Mattcl, and Does I I OI& IP rc"clllcg&"s hei'cln ihi'oilgh 42, inclusive, I fary Ibis lceici'&'ncc each Lil1cf cvcl'v of'his Complaint Bs if'ully sct I through Ill Ice'&luon 10) cont(1(ncd in I'orth hci&cin. IP caid MB11cl entered into Bn clgi'ceirlc;nt whcl'cby I-IP confidentially disclosed the /'/ciynm/(ei» concept to Mattel in exchang&c I'or Ma1tel's promise 1ha1 it would participate csclusivcly with IIP if Mattcl dccidcd io move foi'wcu'cl vvith ihe P/(Iyiiin/(e(» concept or any 01hcl'lnlilca'oncc[71, 45, 22 Mattel voluntcn ily Bccep1cd thc disclosure knowing thc conchtion on which It was tel!dered. 46. I II'!Iso disclosed thc work rccclvulg cci'icon conlPcns<lon, 1 77 Bs to Maitel under thc condition ol confidentiality Bnd scl foi'th clbovc, foi'cu'tlclPcltlon on lhc Pl'olcc1 onl)& lvlth I IP. hc I'casonablc valLIC ol I IP s conlPcnscliion was discussed in detail. 47. Al'tcr reaching lhc concept to Mattel. BL&I'cen1cnt. I'cg&ll'ding disclosure. III'resented ihc P/(Iy(iiuke(» kl'lows thc I'casollcllllc valllc of the 48. ivlcll'Lcl 49. ivlaucl breached thc agreement and flulccl «greCmCnt, SpCCIIICally uaing I ll'S I'lay&iluket'S lvoifc pl'cscntccl by I-IP. perform its oblig&ations under thc Lo BOCI uliCICI'LBI(ln«& IhC I'Itn&lllttkel'S PI'OICC'I With luiothcr ns 7'lie 'I'bi I30». 50. I hc bl'caches lly IMclttcl ca(Ised I-II'amages in all Billolnlt ill excess of llic CCLII"L s general jurisdiction. to be proven at thc time of trial. Such damages include without limitation a pcrccntagc of thc show's profits. sponsorship revenue, integl'cltlclrl fees, I'cbBtc fcvcilLIc, g& hltcfnailoliill scllcs of loi'111ats () firom every season and 10 cll10 'Lclpcs. cl pcl'cei1lcl'&c other toys I'caturcd on business ol'each inventor prcscntin&& on of'all !Icllcs llssoclcated with Lhc winning Loy sho(v. a percentage of'0(sncrship ol'thc Lhc thc shov'&oing I'orward, rcl&cnue Irom spinolls& a percentage of wcbsitc/app revenue, and the value of I IP s ultimate sale of'ts 1'V series and any 12 aITiliatCd Webaite &lnCI/Oi'lpp. SOCh 13 millions ol dollars and in excess o!'hc jurisdictional minimum of'his court to be dctcrminccl at 14 Ll'i«i. (I&or 16 20 71 22 52. I)rclich of Confidence Against I&attcl aud Docs IIP re-allcges herein by this rcf'crence each 51. paragraphs 19 CStini«lted tO be hundrCdS Ol SECOIVII) CAUSIL OP AC"I'ION 15 17 ClcuTIBgCS chic ll'I cli'I c!1110unt I cl'cl'v clllcglitlol1 coiltclhlcd in through 50, inclusive, of this Complaint as if fully sct forth hcrcin. After I'c&lchll1g Lhc novel inl'oirnalion to Mat tel 53. 'clllcl I throu&gh III) agl'ccillcl'll I'(.'gall'ding disclosure. rcg&ardin«& thc I'lttiiiitlket s show Mattel hncvv 'lh«t thc lnlornlcltlol'I «1I70(IL I II'onveyed conliclcniial cu1d I'ol'n'I&IL. I Itil&III(litt I'.~ Lvcls being disclosed in conf idcncc and only in exchange for Mattcl&s participating in Ploi Iaolcet » and that Isfiattcf could not usc I'I(II&nitiket » without I IP. 54. nlaintcllnccl cvcl1 il Mclucl chose 26 77 2g 55. I-II'nd Mllttel that thc conlidcncc bc 'I'herc wcis an agrccmcnt llctwccn 1101 10 pal'llclpaic Mattcl's disclosure io others and ill usc. I'lttillittkc I s. ol'hc I'I(0 tool(et s fol nlcll ciiicl I ll's idccis withouL I-IP is a violation of thc ag&rccment with I IP. 56. 'I'hc breaches by Mattcl caused I IP clamag&cs in an amount in excess of'the Court's ii COivti&L.IVII«I'1 f gCIICI'cll JLB'ISdlCtlon, lo bL'il'OVCn ol'he sliow pclcclitagc s thC llliiC Ol ll1r'll. SLICli dan1&li'CS lnCIu(IC W'lthoul lllili'Lc'itioli cit cl pl'ollis, sponsol'slilp I'evcnL(c, n1tcgl'cltion fees. rebcltc I'cvcnlic, ilitci'ncltlonill sales of lol'n1ciLs fl'onl evcl'v scllsoii &ln(I cul(I tapes, pci'ccntagc of all sillcs clssociatcd with tftc winning& toy B 0'tl'icl'oys fcatul'c(1 01'I 'Lhe sflov', B pcrccnLage 01 ot'hc ovvlicl'ship business of each inventor presenting on thc show going I'orward, revenue I'rom spinolls„cl ol pCI'CCIILBgC &'&'CbsllC/clf'Ip ill . 7 Bf Illicit("(I '&vcbsitc leven(lc, caid thC lul(f/ol'lpp. VcllilC Ol I ll .'I Llltui1BLC s&IIC Of IIS SLlcli clBniagcs cll'0 ln IBI «u110Lult csilliilncd I Lo I'ic V SC11CS Bnd cuiy l1(uiclicds of Iilillions of dollars and in excess of the jurisdictional minimum ot this cour! to be determined at 9 Ll'1 TPHIZD CAUSE Ol" ACTIOIVI 10 (I(or Ir raud Against Mattcl and Docs 57. 12 ] "& I parr'!glclphs fl''c-allegcs hcrcin by this rcf'ci'cncc each 15 liiccting with IIP. I Li fol111BI caid golllg Mcl'Ltel internally dccidcd that it was going to move forward Lo do so wllllout Lo 111 bclicvc that ostensibly moving forward with ILI(lsLui, In Mattcl, holvcveln col'Icc'Bled . it lt!I B television I IV, Ilitclillon fl'onl I IP clod still intend(.'d to procccd with Ill I,atcr on in September 2014, after the Scptcmbcr 59. I wit11 5 pl'0)cci. Lllat wrls so siii1ilcu 10 /'/(IJ&liinf&(.l's cls lo dli'ccilv c(iliipctc vvith it. bui that it alTlrmativcly Ic(I HV 19 Bnd cvcl'v allcgB&ioli conLilincd in Upon lnfol'l11KLloli olid belief', in or around September 2014, after thc September 5g. &vcls throu&&h 10) through 56. inclusive, of'this Complaint as il'&ully sct forth herein. I 14 17 I at. a later date. 5 M&."cting an&! while lvlattcl was Mattcl sct a mccting with a production company called Scptcliiber 2014. Mattcl met with I-ludsun. Upon information and bclicl'. at that meeting with I ludson in September 2014. I ludsun and IMattel discussed a relilily-flased tclcvlsion show concept that was similar f'/(Iyninf&ei s. IJpon inl'ol'I'lirltion and belief, in ol'u'0Lincl ScpLclrlbcr 2014, I ludson and Mattcl 60. 24 Lo discussed getting the reality-television concept uito (Ievefopnlcnt 261 lnfoi111cltloii cu'ld belief; by late with 2 I'or &g& ll I'clif lty Mcittcl . September 2014, telcvisioli pl'0JecL (liat was sllilllclr M&lncl Lo I& soon 11 cLs possible," L.A IN'I' I Jf'Ion waiited lo nlovc fol'wcu'd hll'c I fildson to (Icvclo f'I going to move I'orv'ard with LZ 00 M decided that / /(0'II&(I/((Ill Blid Li 1(clvisc. Ma(tel decided that it wcis not Bs I I V s«101c 61. Upon inl'ormation and belief. Mattel believed thai that (vcrc similar in nature to I'l(IJ&nI(ikei» could co-cxis1, « hei icl; Mattcl decided thai 4 Lmd/or another toy i1 iL wcls Lnllikely then tvvo she&vs Accolzling&ly& upon information cuid wanted to move forivard quickly bccausc it was colicclT(cd Lb&it I IP company/competitor v ould heat Mattel to market with a similar television shov;. Upon inf'()rmation and belief; Ma(tel decided that it would beat I IP to nicu lect. 62. LJpon inf'ormation and belief; in or an&und 101131111 clgl'CCO3013'I V&1th I I udSLB'I Iiolclt&.'0 10 a I'Call IV ShoV& carly'015. Mattel that WcLS So cnteiied into Sun(leo'0 I 11 /((J'ni(ik(&&i&'S Lo compctc v ith it. Under this agrccmcnt, IMattel hired and paid I ludsun to dcvclop for IMattef thc show that ul1imately became The 63. 10 7bi& /303c Upon inlormation and bclicf; IMattcl&s stratcg3 (vas to mislead continued intcres1 in working& with I IP on PI(IJ&nl(ik(&I» while simultaneously I II'bout Mattcl moving& forward 12 with anoLhcr production company on a con1peti1ive project tiiat Mattel was going to hnance. 13 Misleading 111'n this manner would allow Mattcl to get a head start on l-ll'lnd bccit I IP to I ii il I'C C I . 634. I 17 s I&ven though Mattcl had dccidcd to move forward ll', Matlcl coiilinllcd Ils cliscLIsslons wltli particular, in Scptcmber 2014. Bl'0LBIcl I () representative. about 20 I-ludsun and nol I IP, I&orchek continued 71 NOvcl11bcr 2014 cll30ut 22 I.ongarzo (or anyone else at 23 conlpany 24 conversations Pl(II&n&ake&.». / I(IJviiclk(.&((. about nlovni!'o! wal'0 th(.'alilc lln1c continued discilssions Lvlih I I(lds(n1„Kolcl3ek On a I II Lhcu Mattcl 11ad I ludsun rather than (vith I I(i'vni(l/(('i(i. In v&iih dccidcd to move I'or(vilrd wi'Lli .JcITy L011g(ilz&3, cui I-IP business af llurs After Mattcl decided that it wanted to move f'orward with 1o speal& to I-ll" s I,ong&arzo in September, October, and At no ui'Ilc clul'nig 'il'Iosf'onvei'S(itious did Mclttcf 111'J thcit it c(cl'ell had decided to move I'onward with another production 'television show that v'cls slnlllal'10 &iid Lvith Pin('In&in(k(&',\1 At no 'Linic din'Illg 1!iose Matte! cvcr tell I.ongarzo for anyone else at I-II') t!1at it ha(J decided not to Iliovc loinv«u'd with HP. 65. 26 In fate Scptcn113cl'014, alter iMattel had dccidcd to move Ibrvvard with ludsun to I 27 dcvclof3 thc I'callty Lclcvision shovv fcu1d noi lilovc loliwal'cl iviih 28 I lerricl&. rcachcd out to I II I, I II s 1311130113«1, Mattcl's I lollie I-lolmcs. On October 14, I lcrrick again is COMI&LAIÃ1' J&for(on i&cached out io Maltcl's I lolmes in order Lo try nlovlng fol'lvBI'd lvlth pal'Llclf')QLc 4 set Lo 111'. I&all)Of. since hc wcls I'Ln'u1tng cl cllll, I sh(.'c'L Lhc lolmc s did not tell I lerrick that Mattcl was not cell Bncl Lc&lcl I 1 lcITlck that shc lvant&'d I&orcflck lo point on llicsc type ol oppot'ILlilitlc:s li'onl cl Maucl f)L'I'SpCCtlvC, In ol'u'0Ltncl Ocu)L&el't)cf/of cal'ly 66. November 2014& I lerrick and J.onaarzo spoke with I lolmes and Icorchck about /'/cr»mcrkers several times by telephone. During one telcphonc cail during that time period, Mattel's I-lolmes informed I IP thtlt it was not with the Pin& mu/&er. would Ict i Ij I IV project al that time because: Matt I ha(1 a to move I'orward going& poor llnancial period. bul she I(now when things changed. Ilolmes told Ill)us I lcrrick during that phone convct'set(ton tl'lat MBttcl vvcls sllll intel'cstccl n1 nloving fol'wcu'c! with Ployrrrcrkc&r's, bitt Lhc tlnltnL', currently was not right. In thai conversation, Ilolmes encouragecl I-fl" s I lerrick lo follow up with IZ Mattel in B JCW Biol'lths. Dul'lng Qnolhcl'honC Call during thc same time period, JV!Bttcj's Ieofcl)CI( nl&lcfc sinu laf !Itcltcnlcn'Ls I Lo I Otlgclf)'.0, I ll 's bllsulcss QJIalfs I'cpl cscntcltl vc. conln'n1ulg lolmi:s's position. In particular, Iforchcf( rcitcratc:d that Mattel was not with Lhc /'/rrl&mn/re&s to move I'orv,ard going& project at that time because JMattcl had a poor financial period, POICntlallY JclCnlg lclYOJJS, culCI SnlCC PaftlCIPcltulg ul LCICVJSion SCI'ICS Wtla B nol it Pcu'I Oi was Mauel'S core or primary business, such an expcnlditure would be pcrccived as inappropriate while it v as && I (& gtj capel'tet)clog ln'l&1nclal clllllcLiltics. Rgcun, Jell anyone at I IV that it hclc! tulle cfLJI'ulg lhosc convcfsatlc)ns clicl Maltcl cvct' clccidcd to move lorward with another production company on a Lc."Icvlston sftow so sin)i l'll'O P/cr»777(rlc('.I" t's Lo cltl'ectly con1pclc w'1th / /u»mn/cer's. Scvcral months later, in April 2015, llerrick again rcachecl out to Mattcl's lfolmes 67. 21 Bt I'Io about P/nyrnrrker s. Again, at no time during those conversations did Mattcl ever lell anyone clsc at l-ll'h'clt It hllcl dcclcfc(1 lo nlovc Iot'wcu'cl with lulothct'l'oc!Llclton col'I'lpculy on ')6) 'lvBs BOL /'/cr I&nrcr/cer s as to directly compclc vvith P/uynruker s. hl slu11. Ivlattc! I'cpl'cscnti'ci 68. )5 Lo going Lo nlovc lol'w'll'ci wlLh that it v'as still interested in ng nol I'lg&ht, I tclcvlston show movin&& Lhc Lo I IP lhat a pool' Bleu)clcl! Pci'Iod cvas / /n»7770/cc.r"s pl'ofcct QL that Llnlc. Maltel forward with /'/u»makers in Lhe fulure& Ll'lc &'ilso but thc I'eclson lt I'cpi'cscnlcd liming& was loi'4 that was so s in)i far «I I'lose lePfcsct)tcltiot)(sj by MBILcl wcl'c fillsc, SPcclilc&'IJIY, Lhc OOML&Lrcitci'r PLB'POI"Lccl Icc&lson n01 nioVlng lol'Will'CI With thC pl'OJCCL ln1cl'csIccl in nioving& fol'wal'cl with 10 4 nlovc fol'v&'Ql'd 7 I(I)7&1(lkeI'» with I'l, pi'o)f:c1 vvcls l V»QS IciISC QS WQS IQ)&III(fkeI'» Qt cl IvlattCI&S reprCSentlitiOn thclt it Waa Still in lcllcl'ale. In fc«lhty, Maitel held clcclciccl nol ivlol'covcis Ihc I'cdson thclt lVIattcl wns not n1oving fol'wcu'cl with lhc nol'iccclusclt wQs cxpcflcnclng ln1anclal ciif1lculties. I&athcr«Mcntcl hnd clccided lo move I'orward vvith a show that was so similar to I'ln17&ir(ker» as 6& ConlpCLC Wilh Pl(IJ7&inkci'S, culCI WQS So with S001COOC directly Othcl'hcul I IP. At a minimum, Mattel, in particular Mat1cl's Holnlcs dnd 1&orchcl., disclosed 69. 7 donlg 10 some facts to HP about Mattel's decision not to n1ovc fol'weird with PloJ&ainkef», but Intentionally failed to clisclosc other material 10 I I 17 pal'tlcullu', Vilattcl cllsclosc.cl with I'IP Qncl 1(i I tln1c. but Icillc(1 Bt. Lhclt had clcciclcc! Instf'Qcl I'«lcLs, nlcil&ing Mcltic'.I s II, lln10ng 01hcl'hings, thc 10 CIISClosc 10 pi'occccl lvllh 10 stlllcl'11en110 I IP extremely deceptive. B I II lhclt li h'cld IBc1 lhclt it clid not intcnrl to procccd dccidC(1 001 10 pl'ocf:Cd v(ith I ll conipeilnr& show '(vith Q I c& stclicnl(.'nis 10 nilol'n1 conlpf:iilivc 17 70. I II'hai lt held 20 2 I hclcl cl MBLLCI cluty Bl'Ishlg fl'oi'll 1hesc Lo Pl(IJ711(IkeI(&c I IP did not I&now that M'lucl wcls nlovlng loi'v(al'd ivlih cl sl'lolv tha1 lvns l'l(IJ&I&7(Ilcci'»l. LB1rl was doing so with sonlconc othel'hBO I IP. 71. IMclt1cl, ln pal"llculal' loh11cs I'nlsc when they werc made to IIP. «LU1cl Ikorcltel&, kncv'h«11 ihc I'cpl'csentc1110ns welve 'I'liat is. I lolmcs and Irorcitel& l&nclv thc truth — ihnt Mattel 27 lvas niovnlg '13 with somconc other than I IP, and that Mattcl*s purported linancial constraints »vere not the Q pl'elect 'ihnt wcls con1p(.'Lli ivc with l lnJ Inclk(I'», Lltat 72. iVIQLLCI intended to dcccive I-IP rcprcscntation. Specilically, Mnttcl v'an1ed to clctlons thclt woulcl dllow 73. 11 10 bcc11 MBL'Lcl to 11 wcls clou1g& PlnJ&Bloke&I». and intended that I-IP rely on its false sLring& I-IP along& nial'1&et vvlth l and did not want I II'o tal&e l(II&II)cfk('ill. Hl'5 1orv&al'c! Vvlth reason why Mattcl vvas not Inoving forwlird with 77 was decided to proceed with someone else with a show that w;ls compctitivc with Plnymnkei» (and may even have: been based on I cJ ai, Bll cliITci'cnl, I'il'oclilcLIOO col)117any. Mlittcl's rcprescntations were dcccptivc in that they created thc Ilalsc impression that not proccccling& with a show like Playmaker» with culyol'Ie. Mat1cl in HP, in pal llclll'cu' le(riel&, i&casoncibly isdlicd on Mnttel's rr:presentation, 0 0 iv1 P LA L)«I'I' I hid so knolv thc truth -- that Mattcl wcls ITlovil'Ig fol'wai'd wlIh a show so shrlilcu'0 / /(IJ&217(Ikce5 directly compete with I'l(IJ'117(tkct'»r I IP could and would have moved morc swif'tfy to /'1(IJ&717(tker» brin&& to market bcf'ore MIattcf'5 similar and competing shocv. As I'ar as I ll'&new& thcrc wcl'c no conipc11101's dcvcloJilligi'rl sllililar show. Certainly& based on 4 as Io had no reason to bclicvc that Mattcl was devc:loping& B IMBLLCJ's competing show rcprcscntation. III tl'lcl1 vvcis «lt least similar to (if not bclscd oil) P/ctytttctlcet'5. Doing so would be entirely inconsistent v ith Mattel's fcpl'csc'ntc11100 tliclt II was iiot pci'lod. hi Bdcli'tioli () I Iilniccl1&l'Lcl) 'Lalccn 74. I 777e 7'o)&/3ox I Lo I 75. 4 11'L11h vvcls &1 lnovilig Iiloi'c swlltly to bca1 Mattcl ormal egal I IV v'&us Shows 111 S tlir'lt wcicc 7 1 on Bgru nst ih (1 pool lnlaliclcll 01Brkct. Hl would liave I!'IBL IMIHILCJ c'cltlsnl~&& S I 10 bccl'I l lctl&112(tlc(.'I".i nliSI'Cpl'CSCIILclLIOIIS cuilf II I ll to lil&ll'lect culcf Mclttcl S sllilpl)'clnnot co-c'xisl. Mattef S COIICCahnCHI 01 LhC hai'ni. I.ll'lso scckS CXCIilf)lcu')'lclinclgcS Bg'clnlst l~"OUIZTH CAUSI&r (i&or 10 cxpcl'Iclicnlg Iattcl. slniilBI'n natin'0 I'ChBIICC Oli Mcatlcl !6 f cic 1 lial liiCCJ b)'MHLLCI s fi"lud ln sLlbsIantial lactol ui 76. 16 Iol'vvlu'ci bccBLisc !I v "cls piccvenIed IIP from moving& I'orward with Plnynutker» and earning iccvenues I&0!atcd lctJ&111cll&et'5. 13 I I & JO I 10 nlovnig Mclucl fol'LS HIICiitlonill h'BLICI. Olr'CTIOlil Misappropriation of Trade Secrets under CUTSA Against Mattcl and Does I through 10) I 77. ') par&igraphs 78. 21 I I I I''0-cillCgCS hCI'Cin bV IhiS through 76. Inclusive. 0'this Complaint as I 1 if fully sct forth hcreili. IP owns tra&fc scci&cts relatin to Ihc P/0) atolcet» I'ormat. including but not hmii d io details reg&ending how the -& rCICI'C!ICC Cr'ICh BHCI CVCI'y BIICgclLIOB ColitcliliCd iii I'/ct)&mctket » sho'&v erin be pl'oclilccd 10 the vic&vin&& pllbhC, 79. I II'erive:d actual or pote:ntial indepcndcnt economic value trade sccrcts and f'rom its tr'idc secre:Is not being generally known. I'lcti molcet 5 traclc scc:rcts in tlic 27 pl'csclitccl rut&i tcfcvision program. I-IV f1&1st 10 bc&&hi Ll'ic I I)rom thc use of its JP has usc(l these pl'oc&ss of niovhlg lolnvai'cl with a rcaliIy undertook reasonable efforts to protect thc confidentiality of its trade secrets, including by permitting Dilly limited access to thcsc trade sccrcts in conlidential settings. 16 COMI&I.&VII&IT 80. WiIhoLIL I II' cILilhnl'ixcllinn cu1CI In Violcltinn Ol thC 101]')I ICCI Bgi&CCI'i)Cnl obligatinns 0)vcd to I IP. Ivialtel misapproprialed I culC! ll's lradc secrets by using and/or disclosing those trade secrets to dcvclop and/or produce its own con113eting television show called 7'he 7'o» j minimum, Matlel lolew Lhclt it was induslry-slandard that such information was /3ox, Al 'I cnnlidential 'u)d could not bc used or disclosed without 111's participation and consent. 81. I IP did nnt allow Mattcl tn usc its trade secret inform'itinn in connection with a competing television shoiv Bnd without I II's participation, i)flattcl knev'r should have kno)vn that it acquired knowledg&e of ill's ti'cide sccicts under a duty ol'nnn-disclosure and conliclcnli&llitv. 10 thill usc 01 sLIch Infoi111cltinn wo(ilcl cnnstit(itc d bl'ccich 01 conf lcfcnlicility owed to I IP. Mattcl's 01isappl'opl'ialion ol'IIP's 82. 12 cu1cl ti'cldc secrets is in violation of'Calif'nrnia Civil Cocle Section .)426 cl sc(1. Mallei's use and/or disclosure ol' IP's trade secrets has damaged and caused 13 83. 14 BTCP'ru'clblC 15 84. haI1n 10 I IP. Upon inl'ormalion and bcliel; Mattel's misapprnprialion has bccn willi'ul and malicious. Notably. Maucl ivas deceptive and frriiidLilcnl in its intel'clclions with 17 so(lght to cl'crit&'thc fcllsc ul)pi'cssinn thBL 11 '(vas not niovil'ig& foi'vval'cl ivllh consti'rlints, wl'life in reality, it '(vas n10vii)r& forlvalcl vvilh so ul 0I'clci lo bcclt 19 chef 20 cntitlcd to 21 22 Dn clwcu'cl I I damag&es pursuant to lclintiff Praya II'nd actively II dLIc 10 fnlculcicl! I conlf3cting LL'Icvisinn show. M;lttel ll'o n)cu'kcl ivILh Lhc con)pclulg Lclcvision shoiv. of exemplary WI IL'.Rf',ICOII.I'.', B I I l)crcinl'c'.. I II's California Civil CodeScctions 3426.3icf. I'Or judg&ment u1 itS I'&(vol'u'ill &1gclin.'it 17cpc11d&altts, BI'Icl I'BCh of'hem, as I'nllows: ON 'I'IIE ICIRST CAUSI&; OI AC'I'IOIN 1. pi'oven dl thc I&nr d(u11cl 11111c cs In «O'I ru110LB11 In excess ol lhc C(3LBL s gcncl'Bl jurisdiction. to bc of ti'lcil; 75 2, I or pre-judgn1cnl inLercst at the maxint(ull 26 1&or 27 4. 28 I'Bte permitted by law; thc costs of suit incurred herein: Bnd I&oi'LIch otftcr Bncl fLB'thcl''elicl'as this Court may deem just «u1cl pl'opels ON THI". SECOND CAUSE OF ACTION I 1. Fol'lairlagcs il'I an BnloLuri II'I excess of the Court's general jurisdiction, to bc 2 pi'oven Bt the time ol trial, 3 2. For prc-) udg&ment lntcrcst at the maximum rale permitted by law; 3. !'OI'hc costs ol'suit incun&cd herein: Slid 4. I'or such other and further rclicf as this Court may deem just and proper. 5 6 ON THI'. THIRD CAUSli." OF ACTION I'or damages in an amount in excess of the Court's gcncral jurisdiction, kl be ) pl'oven Bt thc tulle ol t!'Ial; 10 2. I'l'xcnlpl ary &encl 11 2. I(or prc-judglncnt interest at thc I'nilxlnlLB11 rate I'Iei'nlitted by law: piull'tive dBnlagcs: I'or tile costs ol'suit incurred herein; and 17 4. 13 For such other and I'urther relief as this Court may deem just Bnd proper. THE FOURTH CAUSE OF AC'I'ION 15 I'ol'ani'lgics ul I,'N 16 171'oven 17 lg &'ll. Qn 'allo(ult ul cxccss oi Ihc C o(u't s gcl'lcl"11 j(u'lsdlctfon. Io bc lhc tlnlc ol tl'ial; 2. I'or rcslltLitlon and disgol'gcnlcnt of I'cv('OLlcs encl pi'ellis In 3. For payment of a royalty lor 1hc Mattel's usc of Ill's trade secrets; Bin(CLul'ts to bc proven Bt tl'1 a 70 l&or 72 treble damages as provided for by statute for (villi'ul Bnd malicious conduct; 5. I'or prc-judg&menl interest 6. !'r an award of attorneys'ees and cosl of suit to the extent permitted bv IBw: Bn(1 Lit thc maximum rate pcrmittcd by lav 24 26 26 /// /// I &S COMt&L&VIN'I' I'or such other rind I'urthcr relief'as the Court decisis inst allcl pl'opcl'. 7. 2 I)atc: .Iuly '.- . 2019 I'RI',I I)iVIAN + 'I'AI'I'li1.iVIAN, I.i,l'ZAINI:.S I'I:.I.MAN I.I,I' Bryalt I'eed111a!1 !Attorneys for Plaintiif Herricl( productions, I.I.C 10 12 13 15 16 17 20 21 22 25 26 27 19 COMPLAIN'I'