the bar
Raising
continued from page 105 Another potential problem related to the proliferation of IoT toys is the monumental change to the current system that is needed to allocate and keep track of the mind-boggling number of IP addresses—estimated to be in the tens of billions—that will be assigned to endless numbers of possessions, so these “smart” objects can collect and communicate information with each other. An even more difficult issue is that manufacturers will need to obtain licenses for the sensing and communication technology that allows toys or other objects to communicate with the environment, with each other, and with people. Strong intellectual property protection also will be needed for inventors’ relevant innovations—ever-smaller power devices and software applications that will gather, manage, and communicate the huge amount of data from all the interconnected devices. Not only technology, but the data itself, if proprietary, requires legal protection. If the myriad new devices and systems are to work, there needs to be a legally protected way to access and use the necessary data.
Not So Fast…
Law firms are closely following the rapid development of the IoT so that they will be ready to counsel clients about protecting their own intellectual property, as well as about their use of the intellectual property of others and the protection of their customers’ privacy. Toy manufacturers will need to stay a step ahead of the IoT in protecting privacy, security, and their patents, trademarks, and trade secrets. Without this legal protection, manufacturers of everything from cars and medical devices to remote-controlled toys and dolls may decide that the risks of the IoT outweigh the benefits of efficiency and productivity. Then, as The Economist’s Babbage blog recently predicted, the IoT may turn ■ out to be the Internet of Nothings.
Howard N. Aronson has provided legal counsel to toy industry companies for the past 35 years. He is the managing partner of Lackenbach Siegel LLP, an intellectual property law firm recognized for its nine decades of handling toy company issues. Contact Aronson at haronson@LSLLP.com .
SEPTEMBER/OCTOBER 2014
continued from page 111 he says. Film franchises such as Teenage Mutant Ninja Turtles and RoboCop were rebooted this year, sparking a surge in the sales of vintage toys. “In a sense, the newer stuff pushes the old stuff to the forefront a little more and increases the value,” says Hembrough. With even more films based on classic franchises set for release in coming years, such as Star Wars, the Toy Hunter expects this trend to continue to grow.
Forbidden Fruit Some properties are always hot, but there are also some collectibles that Hembrough stays away from entirely. Fad toys from the ’80s and ’90s that people believe are hot and valuable are actually virtually worthless. “I never buy Cabbage Patch Kids,” he says, “They are just all over the place, and they haven’t retained their value.” Similarly, Ty’s Beanie Babies were all the rage in the ’90s, flooding hobby and specialty shops, but due to overproduction and a lack of demand, the fad quickly died and the oncevaluable plush buddies are now worth less than their original retail price. Tiger Electronics’ Furby was another hot seller in the ’90s. With a retail value of just $35, Hembrough was selling Furbies at a whopping $400 a piece—including one to actress Demi Moore. Now, however, Hembrough says the original Furbies are worth a mere $50. The brief popularity of these toys was due in large part to under-manufacturing, but because the fads were fleeting, the toys did not retain their value. “Sometimes, you have to under-manufacture, but then again, how do you make a profit?” Hembrough questions. While deals for the fourth season of Toy Hunter are still in the works, Hembrough shows no signs of slowing down in the world of collectibles and pop culture. With his Hollywood Heroes storefront that welcomes hundreds of visitors every weekend, an exciting social media fanbase, and an unmatched passion for finding toys that are of unicorn status, Hembrough’s hunt is far from over. ■
Follow @JordanHembrough on Twitter! THE TOY BOOK • 115