Judge OKs Inventor’s Mattel Suit

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A Santa Monica game inventor representing himself in a breach of contract suit against Mattel Inc. has been given the go-ahead to proceed with the case by a federal court judge.


Stewart Lamle claims that the El Segundo-based toy company reneged on an agreement to develop and market a board and computer game he created called “Farook.” He is seeking $28 million, alleging breach of contract, patent infringement and intentional interference with economic relations.


According to court papers, an e-mail sent to Lamle in 1997 by a Mattel employee allegedly outlined terms of a deal in which the company would pay $150,000 on the signature of a contract and an additional $200,000 advance by the end of January 1998, against a royalty rate of 15 percent of revenues.


Instead, court documents indicate Lamle was paid $25,000 and that the company decided not to license “Farook” after displaying the game at a pre-Toy Fair gathering meant to gauge buyer interest.


A representative for Mattel declined comment, saying the company does not comment on pending litigation.


A ruling handed down by U.S. District Court Judge Terry J. Hatter Jr. found that a jury might conclude there is enough evidence to support the existence of an oral contract, and the case should be allowed to go to trial.


To finance his case, Lamle set up a makeshift stand on the Third Street Promenade in Santa Monica, from which he said he has sold thousands of the units.


But even that effort landed him in court. He said he was forced to stop selling the game there after receiving 33 citations, including operating without a business permit, and being threatened with arrest. He said he filed a lawsuit against the city of Santa Monica for malicious prosecution and denial of his First Amendment rights.


Lamle said he is selling “Farook” through Puzzle Zoo in Santa Monica and in specialty shops in New York and Atlanta.

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