Crayola Properties, Inc. has filed a lawsuit against Jetson Electric Bikes LLC, accusing the company of breaching a licensing agreement and infringing on its trademark. The complaint was lodged in the United States District Court for the Eastern District of New York on October 16, 2024. Crayola alleges that Jetson continued to sell products under the Crayola brand without authorization after their licensing agreement expired.
According to court documents, Crayola and Jetson entered into a License Agreement on January 1, 2023, which allowed Jetson to manufacture and sell certain products using Crayola's trademarks. These products included a "3 Wheel Kick scooter" that featured various Crayola intellectual properties such as trademarks and designs. In return, Jetson was required to pay royalties to Crayola by specific dates outlined in the agreement. However, Crayola claims that Jetson failed to report royalty statements for Q4 2023 and Q1 2024 and did not make the necessary payments.
The License Agreement between the two parties expired on December 31, 2023. Despite this expiration, Crayola asserts that Jetson continued selling licensed products beyond this date without permission. Efforts by Crayola to resolve these breaches amicably were allegedly ignored by Jetson, prompting Crayola to send a final demand letter on July 10, 2024. This letter went unanswered, leading to further legal action.
Crayola is seeking several forms of relief from the court. They are asking for compensatory damages amounting to at least the unpaid royalties from Q3 2023 and any additional royalties owed under the License Agreement. Furthermore, they request reimbursement for all expenses related to collecting these unpaid royalties, including attorney fees incurred during this legal process. Additionally, Crayola seeks preliminary and permanent injunctions preventing Jetson from using their trademark or representing any association with Crayola in any form.
The case is being handled by attorneys Christopher U. Warren from Buchanan Ingersoll & Rooney PC in New York City and Christopher H. Blaszkowski along with Shayne D. Rasay from their Pennsylvania office. Case ID 1:24-cv-7250.