Mattel Sued by Model Car Maker

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Editor’s Note: A version of this story appears in the Nov. 17 print edition.

Exoto Inc., a Moorpark manufacturer of collectible model cars, has filed the latest lawsuit in its long-running battle against Mattel Inc. over claims that the toymaker interfered in a licensing agreement between Exoto and Ferrari.

El Segundo-based toymaker Mattel and Exoto have been waging a trademark battle over high-end replica cars for nearly eight years, said Al Mohajerian, Exoto’s attorney. The suit, which was filed in Los Angeles County Superior Court on Nov. 5, also claims Ferrari breached a contract.

The battle began when Exoto filed the first suit in 2001, claiming Mattel copied a design. According to court documents, the companies reached a truce that allowed Exoto to sublicense Ferrari models, but Mattel later canceled that agreement. Exoto then cut its own deal with Ferrari. Exoto alleges that Mattel interfered with that agreement, and the latest suit seeks damages of $10 million.

“Exoto has suffered out-of-pocket damages and loss of expected profits because this thing has been dragging for eight years,” Mohajerian said.

Mattel did not return a call for comment last week.

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