IFI and McDonald’s® Partner to Feature HEXBUG Micro Robots in McDonald’s Happy Meal®

Innovation First International, creators of the widely popular HEXBUG® Micro Robotic Creatures brand, today announced a partnership with McDonald’s USA LLC, the nation’s leading foodservice provider, to feature custom HEXBUG toys in McDonald’s Happy Meals at participating restaurants across North America.

The four week HEXBUG Happy Meal program will run from February 22 – through March 21, 2013 while supplies last. Participating McDonald’s restaurants across the United States and Canada will offer customers one of six collectible HEXBUG Micro Robotic Creatures with the purchase of a Happy Meal:

• Fast crawling HEXBUG Speed Beetle™ in Green and Red
• Slow crawling HEXBUG Beetle™ in Black and Orange
• Bump and go HEXBUG Nano® Pullback Blue and Black

“To be a part of the iconic McDonald’s Happy Meal experience is truly an honor,” said Chris Troyak, president of Innovation First Labs, Inc. “This is a once in a lifetime opportunity to reach millions of new and old fans directly with special, collectible HEXBUG toys that they can only get at McDonald’s.”

McDonald’s will support the partnership with a fully-integrated marketing campaign that includes television advertising, in-restaurant merchandising and custom packaging, coupled with an online web presence. The television advertising campaign will run from February 22 – March 21, 2013.

Designed to foster children’s creativity, develop their fine-motor skills, and fuel hours of imaginative playtime, HEXBUG Micro Robotic Creatures are innovative, high-tech toys with features and behaviors that enable them to react to their environment. The world-recognized brand is available at retailers nationwide and at hexbug.com.

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HEXBUG® Creator Inks Deal to Bring Kakerlakak to Retail in Europe this Spring

Innovation First International, masterminds behind the internationally recognized HEXBUG® Micro Robotic Creatures brand, today announced a new licensing partnership with Ravensburger, to introduce Kakerlakak – the world’s first HEXBUG themed board game. Due to crawl onto retail shelves in Europe this Spring, the Kakerlakak game will be on display at the Spielwarenmesse, International Toy Fair Nuremburg, Germany from January 30 – February 4 at Booth A12-D13 in hall 12.0.

“We are excited to add Ravensburger as a HEXBUG licensee for the debut of Kakerlakak, which introduces our innovative vibrating robotic toy to traditional family game play,” said Tony Norman, President and Chief Executive Officer of Innovation First International. “Ravensburger’s approach to product development goes hand in hand with our brand philosophy of delivering quality entertainment experiences that can be enjoyed by the entire family.”

Kakerlakak is a fast-paced action game, with a frenetic HEXBUG Nano® mini robot at the center of the action. The interactive Kakerlakak game requires rapid response and hand-to-eye coordination, and challenges children ages five and up to maneuver the skittering bug through the kitchen maze using a variety of kitchen utensils. The ultimate winner is the player with the most chips at the end of the game, which they earn by trapping the bug into their corner.

“We are very pleased to partner with Innovation First, whose wildly popular HEXBUG brand has enabled us to deliver a new and innovative board game that speaks to trends in popular culture and will help expand their growing European fan base,” said Thomas Zumbühl, International Product Manager of Ravensburger.

Ravensburger is Europe’s leading supplier of puzzles, games and craft products and one of the leading publishers of books for children and adolescents in the German-speaking area. The blue triangle is one of the most renowned trademarks in Germany. The programme comprises almost 8,000 different products (including all country-specific editions) that are sold worldwide and 85% of which are produced internally. In 2011 a workforce of 1,640 earned revenues of 319.5 million euros.

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Innovation First Makes Good on Promise to Defend Trade Secrets Across Entire Supply Chain

GREENVILLE, Texas – January 4, 2013 –Innovation First International filed a complaint today with the U.S. International Trade Commission, requesting an investigation be instituted against CVS Caremark (NYSE:CVS) – a pharmacy with over 7,500 stores nationwide, for unfair trade practices. The claim against CVS is related to the “Robo Fish” toy, manufactured by Zuru Toys, Inc., and sold in CVS stores to its consumers. Innovation First contends that the “Robo Fish” toy includes technology developed by the company and its employees that was misappropriated by persons affiliated with Zuru Toys.

“This should come as no surprise to CVS. We warned all major retailers last year of the consequences they would face if they were to import the Robo Fish product,” explained Tony Norman, President and Chief Executive Officer of Innovation First International. “Against our advice, this retailer knowingly chose to carry the product line, and will now have to face the legal consequences associated with its actions,” concluded Norman.

Innovation First asserts that the “Robo Fish” product incorporates technology that was stolen by an IFI engineer and shopped for several months to other toy companies.  The engineer ultimately placed “Robo Fish” with Zuru Toys and resigned as head of R&D for Innovation First’s China development team the day of the sale.  Innovation First sued Zuru Toys more than a year ago and remains engaged in litigation with Zuru Toys, despite attempts by Zuru Toys to avoid the U.S. justice system. Major U.S. retailers other than CVS have elected not to carry the offending products. Innovation First plans to release its official version of the Aqua Fish product under the HEXBUG brand this August.

“The toy industry is notorious for encouraging knock-off artists by placing offending products on their retail shelves,” said Norman. “Retailers know the toy industry, but some pretend not to recognize obvious knock-offs or other unfair trade practices.  Those retailers bury their heads in the sand and rely on the hollow promise of indemnification from unscrupulous suppliers – a practice that stifles true innovation.”

International Trade Commission investigations and proceedings focus directly on the wrongful actions of companies, like CVS, that import offending products.  “Unlike a typical toy company, we are broadly diversified and not dependent solely upon toy revenue. Therefore, we won’t hesitate to file suit against retailers, or seek justice through other avenues like the ITC if anyone in the supply chain steals our technology, confidential information or trade secrets,” concluded Norman.

About Innovation First International:

Innovation First International was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs.  Innovation First International’s three main subsidiaries, VEX Robotics, Inc., Innovation First Labs, Inc. (makers of HEXBUG® Micro Robotic Creatures), and RackSolutions, Inc. span the education, consumer and business-to-business markets.

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Highly Anticipated New Line of HEXBUG Products Hit Retail Stores Worldwide and Online at HEXBUG.com/Warriors

GREENVILLE, Texas – Aug. 2, 2012 – The creator of the popular HEXBUG brand of high-tech micro robotic creatures has unleashed the newest members of the HEXBUG family: the rough and tough HEXBUG^® Warriors Battling Robots. These futuristic fighters are tiny, collectible, micro robots that use the physics of vibration, similar to the famed patented HEXBUG Nano, to propel forward and challenge competitors in sleek new customizable Battle Arenas and Stadiums.

“We’re introducing some exciting new high-tech features and competitive elements with the launch of HEXBUG Warriors Battling Robots, including customizable armor, damage indicator lights, and shock sensors, that give kids new, interactive ways to engage in open-ended play with our toys,” said Chris Troyak, president of Innovation First Labs, Inc. “This is the first major extension of the HEXBUG brand that uses our successfully patented HEXBUG Nano technology, and it is just the beginning of what we have planned to roll-out for the holiday season.”

HEXBUG Warriors Battling Robots come in four colors – red, yellow, blue and green – representing four dueling science academies from the year 2087, Viridia Prep, Tronikon Tech, Bionika Cyborg & Caldera Prep. Kids can outfit each Warrior with strategic combinations of mechanical weapons and armor to outmaneuver their rivals, and control the fate of their academy’s Warrior fleet.  As each HEXBUG Warrior Battling Robot is turned on and powered up, the selected weapons come to life kinetically using the patented HEXBUG Nano vibration technology. As the battles rage on, each robot’s jabs activate an onboard Shock Sensor causing the Damage Indicator Light to blink more rapidly as the Warrior’s health decreases. Ultimately, only one HEXBUG Warrior Battling Robot is left standing victorious on the Battle Arena or Stadium.

Beginning today, HEXBUG Warriors Battling Robots are marching into retail stores nationwide including Walmart, Target, Toys“R”Us and RadioShack, among others. In September, they will also be available in Canada and the United Kingdom exclusively at Toys“R”Us stores. Kicking off the launch, HEXBUG Warriors Battling Robots will be showcased and demoed at two highly influential mom blog events being held in New York, NY, coinciding with the BlogHer 2012 conference, on August 2 hosted by The Big Toy Book and on August 3 hosted by BSM Media.

New HEXBUG Warriors Battling Robots now available include:

• HEXBUG Warriors Battling Robots – Kids can operate their HEXBUG Warriors in Training Mode, with unlimited health, for scrimmages and testing purposes. Once the Warriors are equipped and ready for battle, they can be powered into Match Mode and are set to enter into competition, where they crash, jab and jostle with their opponents until they win or lose by running out of health at which point they deactivate. Once put in Match Mode, each robot’s Shock Sensor activates its Damage Indicator Light which changes colors from green to red and blinks more rapidly as its health decreases. There are 12 assorted HEXBUG Warrior Battling Robots Single packs available for fans to collect. Each Single pack includes 1 fully-armored Warrior. MSRP is $7.99 and the product is CPSIA approved for kids ages 6 and up.
• HEXBUG Warriors Battle Arena – The battle arena is the perfect stage for HEXBUG Warriors students to hone their skills.  It comes with two HEXBUG Warriors with weapons and armor, two expandable battle arena pieces (compatible with Battle Stadium), three standoffs and extra bonus armor. There are four assorted HEXBUG Warrior Battle Arenas available for fans to collect.  Each features a different opposing pair of Warriors. MSRP is $19.99 and the product is CPSIA approved for kids ages 6 and up.
• HEXBUG Warriors Battle Stadium – The ultimate large scale battleground for all HEXBUG Warriors students comes with two fully-armored collectible HEXBUG Warriors, eight Battle Stadium Pieces (compatible with Battle Arena) and 12 standoffs. There are two assorted HEXBUG Warrior Battle Stadiums available for fans to collect. Each features a different opposing pair of Warriors. MSRP is $29.99 and the product is CPSIA approved for kids ages 6 and up.

For more information on their fierce futuristic rivalry, visit www.hexbug.com/warriors.

PR Contact:

Esther Rawlings, Cohn & Wolfe; Esther.Rawlings@cohnwolfe.com; 310-967-2953

About HEXBUG and Innovation First:

HEXBUG® is a product line developed by Innovation First Inc., and distributed and marketed by Innovation First Labs, Inc., both wholly owned subsidiaries of privately held Innovation First International, Inc.  The company was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs. Innovation First began developing electronics for unmanned mobile ground robots and is now an industry leader in research and development for the hobby, competition, education and toy markets.

Innovation First International’s three main subsidiaries, VEX Robotics, Inc., Innovation First Labs, Inc. (makers of HEXBUG® Micro Robotic Creatures), and RackSolutions, Inc. span the education, consumer and business-to-business markets. The VEX® Robotics Design System is the leading platform for middle school and high school education and competitive robotics. Leveraging the company’s core competency in electrical and mechanical engineering, the RackSolutions® division works closely with all major computer OEMs to provide custom mounting solutions and industry-wide rack compatibility for data installations of all sizes.

In 2009 the company added offices in Hong Kong, China and the United Kingdom to better serve the global marketplace. This network was expanded to Canada in 2010 with the addition of an office, warehouse and distribution center located in Toronto. With an advanced in-house metal fabrication plant, distribution center and corporate office located together in a 13-acre complex in Greenville, Texas, the company is poised to continue on a rapid growth path. Please visit www.innovationfirst.com for additional information.

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Paul Warner to Head Up National Sales for Company’s Expanding Toy Division Including HEXBUG® Micro Robotic Creatures and Bobble BotsTM Brands

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Highly Anticipated HEXBUG Larva, HEXBUG Nano Habitat Sets and Collectible Limited Edition Nano Bugs Amass at Retailers Nationwide and HEXBUG.com

GREENVILLE, Texas – Aug. 2, 2011 – Today, Innovation First Labs, Inc., creator of the internationally recognized HEXBUG^® Micro Robotic Creatures brand, revealed its exciting new back to school and holiday product line-up, designed to further unlock kids’ creative potential and reinforce learning through imaginative playtime. New fall and winter products include the Nano Hive Habitat Set for kids on the go, a slithering new HEXBUG Larva, the re-designed TIA Specialty Toy of the Year Nano Habitat Set featuring the Construct System, and two jaw-dropping limited edition HEXBUG Nano bugs outfitted for Halloween and the Holiday season with festive features and packaging.

“We are constantly developing fun and innovative ways for our customers to push their creative boundaries using HEXBUG products, and we fully intend on becoming an industry iconic brand and a staple kids toy for many years to come” said Chris Troyak, president of Innovation First Labs, Inc. “It is our customers passionate ingenuity that puts a healthy pressure on our engineers to design these playful new products that further stimulate open-ended creativity just in time for the back to school and holiday season.”

HEXBUG Micro Robotic Creatures and the collection of expandable and customizable HEXBUG Nano habitat sets ignite kids’ interest in science and technology as well as foster their creativity to fuel hours of imaginative playtime.  Starting mid-August through December a series of new mechanical robotic bugs, Nano habitat sets and accessories, and limited edition Nano bugs will scurry into specialty and major retailers nationwide including Walmart, Target, Toys“R”Us and RadioShack among others.  These items will also be showcased at two influential mom blog events being held in San Diego, CA, coinciding with the BlogHer 2011 conference, on August 4 hosted by The Big Toy Book and on August 6 hosted by BSM Media.

New HEXBUG fall and winter 2011 products include:

●      HEXBUG Nano Hive Habitat Set – For kids on the go, HEXBUG introduces the first transportable environment that enables HEXBUG Nano architects to customize the design within a Habitat Set system.  Each Hive Habitat Set unfolds to feature a center ramp for the Nano to freely access multiple levels and a floor spotted with attachment points where kids can pop in their choice of new playground accessories.  Kids can personalize their playground by repositioning the pegs and rotatable flags which direct the HEXBUG Nano toward ramps or other obstacles, including a seesaw and a merry-go-round, for the playfully energetic critters to explore. CPSIA approved for kids 3 and up; MSRP: $34.99; Available mid-August/September at retailers nationwide and online at www.hexbug.com.

●      HEXBUG Larva – This captivating new addition to the HEXBUG family slithers forward on smooth surfaces using a slow, rhythmic flexing motion.  Just like real larvae, each of these creepy crawlers reacts to its environment, instinctively changing direction upon sensing an object in its path and wriggling off to explore a clear, undisturbed path ahead – a behavior that is eerily mesmerizing to watch and interact with. CPSIA approved for kids 8 and up; MSRP; $14.99; Available mid-August/September at retailers nationwide and online at www.hexbug.com.

●      New! HEXBUG Nano Habitat Set Featuring the Construct System – Enhancing the HEXBUG Nano Habitat Set that received the TIA Specialty Toy of the Year Award in 2011, the new set is updated with the Construct Habitat System and now features new modular parts and accessories to extend creative playtime.  The floor of each Hex Cell now comes spotted with attachment points where kids can insert the playground accessory of their choice including pegs, adjustable flags, a seesaw, a merry-go-round and vertical and horizontal rollers.  The newly designed Hex Cells also come with removable walls so multiple cells can be connected to one another to create vast and diverse environments. CPSIA approved for kids 3 and up; MSRP: $29.99; Available this October at Target stores nationwide and online at www.hexbug.com.

●      Limited Edition HEXBUG Nano – Following the success of the limited edition HEXBUG Nano Easter Egg sold exclusively at RadioShack, will be the release of two new limited edition holiday bugs.  For Halloween, the new Halloween Zombie Nano will rise to the occasion from coffin-shaped packaging and a glow in the dark exoskeleton, to make sure kids are happily trick-or-shrieking.  Then, just in time for tree trimming, the Holiday Ornament Nano will make its debut outfitted with reindeer antlers and packaged in a festive ornament. CPSIA approved for kids 3 and up; MSRP: $5.99.  The Halloween Zombie Nano will be available this September at RadioShack stores nationwide, and the Holiday Ornament Nano will be available this November at Target and RadioShack stores nationwide.

About HEXBUG and Innovation First:

HEXBUG® is a product line developed by Innovation First Inc., and distributed and marketed by Innovation First Labs, Inc., both wholly owned subsidiaries of privately held Innovation First International, Inc.  The company was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs.  Innovation First began developing electronics for unmanned mobile ground robots and is now an industry leader in research and development for the hobby, competition, education and toy markets.

Innovation First International’s three main subsidiaries, VEX Robotics, Inc., Innovation First Labs, Inc. (makers of HEXBUG® Micro Robotic Creatures), and RackSolutions, Inc. span the education, consumer and business-to-business markets.  The VEX® Robotics Design System is the leading platform for middle school and high school education and competitive robotics.  Leveraging the company’s core competency in electrical and mechanical engineering, the RackSolutions® division works closely with all major computer OEMs to provide custom mounting solutions and industry-wide rack compatibility for data installations of all sizes.

In the 2009 the company added offices in Hong Kong, China and the United Kingdom to better serve the global marketplace.  This network was expanded to Canada in 2010 with the addition of an office, warehouse and distribution center located in Toronto.  With an advanced in-house metal fabrication plant, distribution center and corporate office located together in a 13-acre complex in Greenville, Texas, the company is poised to continue on a rapid growth path.  Please visit www.innovationfirst.com for additional information.

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Toy Company Makes Good on Promise to Vigorously Defend Products Against Knock-Offs Across Entire Supply Chain

Warrington, United Kingdom – August 3, 2011 –Innovation First International (UK) Limited and Innovation First, Inc. filed a lawsuit last week against the greeting cards and gifts retail chain with over 800 stores in the UK, Clinton Cards plc, as well as one of its suppliers, Only 4 U Limited, and the supplier’s managing director, Mr. Kishorilal Devchand Gosar Shah, asserting claims of intellectual property infringement in respect of the popular “Mum’s Choice” award-winning HEXBUG^® Nano™ micro robotic toy.

The lawsuit, issued in the UK High Court of Justice (Patents Court), contends that the Defendants committed infringement of registered and unregistered European design rights in the HEXBUG Nano design, as well as passing-off through deceptive packaging, by the sale, offer for sale, and stocking for sale of the imitation products sold and marketed under the names “Micro-Insect” and “Jitterbugz”.

“We are delivering on the international promise we made to the toy industry to aggressively protect the intellectual property of our brands and products from those who, at any point in the supply chain, profit from infringing our rights,” said Tony Norman, chief executive officer of Innovation First International. “We encourage suppliers, retailers and customers to beware of these imitators that take advantage of our product design, packaging and marketing, while we work to get them off retail shelves and remove them permanently from the market.”

Innovation First brings this action to stop the Defendants from further infringing the company’s intellectual property, to discontinue the distribution and sale of the “Micro-Insect” and “Jitterbugz” products, and to recover compensation for the Defendants’ actions, which may include any profits the Defendants have made, or may make, from the sale of “Micro-Insect” or “Jitterbugz” products.  As retailers finalise their Christmas preparations, Innovation First plans to increase production and ship additional HEXBUG stock to the UK for what is set to be a strong holiday season for the brand.

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About HEXBUG and Innovation First:

HEXBUG® is a product line developed by Innovation First Inc., and distributed and marketed by Innovation First Labs, Inc. and Innovation First International (UK) Limited, wholly owned subsidiaries of privately held Innovation First International, Inc.  The company was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs.  Innovation First began developing electronics for unmanned mobile ground robots and is now an industry leader in research and development for the hobby, competition, education and toy markets.

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Lawsuits and Investigations Target UK Copycats Raising Total to Over 1,000 Successful Enforcement Actions Worldwide

Warrington, United Kingdom – May 5, 2011 – Innovation First International is pleased to report numerous victories in its fight against a global surge of knock-off and counterfeit products that imitate the company’s highly successful HEXBUG^® Nano™ brand toys. The company continues to be successful in courtroom litigation, having resolved yet another lawsuit filed last year, this time against UK based company 50 Fifty Gifts (UK) Ltd, its principal Ali Mafi and affiliated entities. Since the launch of its aggressive campaign last year, the company reports over 1,000 successful enforcement actions to date worldwide.  Across Europe, Spin Master Ltd., the European distribution partner for HEXBUG serves as a key ally in the fight against knock-off producers, leveraging its extensive network of investigators, enforcement agents and legal teams.

The case against 50 Fifty Gifts (UK) Ltd, its principal Ali Mafi and others, claimed trade dress infringement; injury to business reputation; and common law unfair competition; unjust enrichment and other wrongful conduct in offering knock-offs. Key terms of the settlement include the transfer of ownership of the “Kreep-Es” brand to Innovation First, and the transfer of all worldwide intellectual property rights owned by 50 Fifty Gifts in the “Kreep-Es” to Innovation First. Further, 50 Fifty Gifts agreed to cease the design, manufacture and sale of the “Kreep-Es” products and vibrating locomotion toys immediately. 50 Fifty Gifts must also deliver the molds, dies and tooling used for creating Kreep-Es to Innovation First in China.

“Our successful enforcement actions coupled with the 50 Fifty Gifts settlement are significant steps in our ongoing global campaign to protect our world-recognized HEXBUG^® Nano™ brand, said Tony Norman, president and chief executive officer of Innovation First International.  “The toy industry is notorious for breeding copycats of hot products, and we know that retailers become a part of the problem when they place knock-off artists’ products on store shelves.  This practice stifles innovation, and we won’t hesitate to file suit against retailers or anyone else in the supply chain who infringes our intellectual property.”

In February of this year, Innovation First resolved a lawsuit filed last May against Urban Trend, LLC. The case, filed in United States District Court for the Northern District of Texas, claimed trade dress infringement, violations of the Lanham Act and other wrongful conduct in offering knock-offs. Key terms of the settlement included a cash payment to Innovation First, the transfer of ownership of the “i-insect” brand to Innovation First, and the transfer of all worldwide intellectual property rights owned by Urban Trend in the “i-insect” to Innovation First. Further, Urban Trend agreed to cease the design, manufacture and sale of the “i-insect” products and vibrating locomotion toys immediately. Urban Trend also delivered the molds, dies and tooling used for creating i-insect to Innovation First in China.

Notes to editors:

For more information please contact Sarah Jackson at Cohn & Wolfe on 020 7331 5448 or at sarah.jackson@cohnwolfe.com

About HEXBUG and Innovation First:

HEXBUG® is a product line developed by Innovation First Inc., and distributed and marketed internationally by Innovation First Trading, Inc., both wholly owned subsidiaries of privately held Innovation First International, Inc. The company was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs. Innovation First began developing electronics for unmanned mobile ground robots and is now an industry leader in research and development for the hobby, competition, education and toy markets.  Innovation First International’s three main subsidiaries, VEX Robotics, Inc., Innovation First Labs, Inc. (makers of HEXBUG® Micro Robotic Creatures), and RackSolutions, Inc. span the education, consumer and business-to-business markets. The VEX® Robotics Design System is the leading platform for middle school and high school education and competitive robotics. Leveraging the company’s core competency in electrical and mechanical engineering, the RackSolutions® division works closely with all major computer OEMs to provide custom mounting solutions and industry-wide rack compatibility for data installations of all sizes.

In the 2009 the company added offices in Hong Kong, China and the United Kingdom to better serve the global marketplace. This network was expanded to Canada in 2010 with the addition of an office, warehouse and distribution center located in Toronto. With an advanced in-house metal fabrication plant, distribution center and corporate office located together in a 13-acre complex in Greenville, Texas, the company is poised to continue on a rapid growth path. Please visit www.innovationfirst.com for additional information.

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Lawsuits and investigations lead to over 1,000 successful enforcement actions worldwide

New York – February 13, 2011 – On the morning of the American International Toy Fair in New York, Innovation First International is pleased to report numerous victories in its fight against a global surge of knock-off and counterfeit products that imitate the company’s highly successful HEXBUG® NanoTM brand toys. Since the launch of an aggressive campaign last year, the company reports over 1,000 successful enforcement actions thus far worldwide. At the recent Hong Kong, London and Nuremburg toy fairs, the company was successful at removing copycat products from the displays of over 40 separate infringing companies. Additionally, numerous websites and wholesale trade portals have removed products found to be in violation.

Innovation First has also been successful in courtroom litigation, having successfully resolved the lawsuit filed last May against Urban Trend, LLC. The case, filed in United States District Court for the Northern District of Texas, claimed trade dress infringement, violations of the Lanham Act and other wrongful conduct in offering knock-offs. Key terms of the settlement include a cash payment to Innovation First, the transfer of ownership of the “i-insect” brand to Innovation First, and the transfer of all worldwide intellectual property rights owned by Urban Trend in the “i-insect” to Innovation First. Further, Urban Trend agreed to cease the design, manufacture and sale of the “i-insect” products and vibrating locomotion toys immediately. Urban Trend will also deliver the molds, dies and tooling used for creating i-insect to Innovation First in China.

“The successful enforcement actions along with the Urban Trend settlement are significant steps in our ongoing global campaign to protect our HEXBUG® NanoTM intellectual property,” said Tony Norman, president and chief executive officer of Innovation First International, Inc. “Along with our litigation victory, we are pleased with our recent successes in removing knock-off products from the internet and from the floor of the major international toy fairs. We will continue aggressively to pursue any and all violators who infringe our intellectual property, and we intend to police the upcoming New York Toy Fair for violators.”

Another major asset in the war on knock-offs is the new European distribution partner for HEXBUG®, Spin Master Ltd. The global brand building power of Spin Master now gives the HEXBUG® NanoTM visibility throughout Europe, making knock-off products less appealing to retailers. Spin Master assembled an extensive worldwide network of investigators, enforcement agents and legal teams during their successful three year battle against knock-offs of the Bakugan Toy and Entertainment property. This network has recently been made available to Innovation First, and Innovation First has obtained outstanding initial results using this network against knock-off producers.

“We are very pleased to be partnering with a great brand like HEXBUG®, and a highly creative company like Innovation First,” said Anton Rabie, president and chief executive officer of Spin Master. “We have a vested interest in the success of HEXBUG® and have given Innovation First full access to all of our resources in this important fight against HEXBUG® knock-offs.”

Additionally, lawsuits filed last year, asserting claims for common law misappropriation, unjust enrichment and violations of other intellectual property rights, remain pending against companies accused of manufacturing, advertising, promoting, distributing and/or selling products that were derived from innovative components of the HEXBUG® NanoTM micro robotic toy. These matters have been, and will continue to be pursued aggressively. Although legal battles will continue through the court system, consumers may have already rendered their verdict as offending product is starting to show up on clearance shelves. Innovation First has also pursued, and will continue to pursue, patent protection for the HEXBUG® NanoTM. The product is extremely unique in form and function, which lends to the very broad and defendable copyrights, trademarks, design and utility patents that Innovation First is seeking and has obtained.

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About HEXBUG and Innovation First:

HEXBUG® is a product line developed by Innovation First Inc., and distributed and marketed by Innovation First Labs, Inc., both wholly owned subsidiaries of privately held Innovation First International, Inc. The company was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs. Innovation First began developing electronics for unmanned mobile ground robots and is now an industry leader in research and development for the hobby, competition, education and toy markets.

Innovation First International’s three main subsidiaries, VEX Robotics, Inc., Innovation First Labs, Inc. (makers of HEXBUG® Micro Robotic Creatures), and RackSolutions, Inc. span the education, consumer and business-to-business markets. The VEX® Robotics Design System is the leading platform for middle school and high school education and competitive robotics. Leveraging the company’s core competency in electrical and mechanical engineering, the RackSolutions® division works closely with all major computer OEMs to provide custom mounting solutions and industry- wide rack compatibility for data installations of all sizes.

In the 2009 the company added offices in Hong Kong, China and the United Kingdom to better serve the global marketplace. This network was expanded to Canada in 2010 with the addition of an office, warehouse and distribution center located in Toronto. With an advanced in-house metal fabrication plant, distribution center and corporate office located together in a 13-acre complex in Greenville, Texas, the company is poised to continue on a rapid growth path. Please visit www.innovationfirst.com for additional information.

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Greenville, Texas – October 5, 2010 – A lawsuit asserting claims for common law misappropriation and unjust enrichment was filed last week against MGA Entertainment, Inc. in the 354th Judicial District Court for Hunt County, Texas. The lawsuit accuses MGA of manufacturing, advertising, promoting, distributing and/or selling products that were derived from innovative components of the HEXBUG® Nano™ micro robotic toy, created by Innovation First. The HEXBUG® Nano™—a toy that moves with quick, random insect-like motion, and rights itself if flipped on its back—is offered by leading retailers in the U.S. including Walmart, Target, Toys“R”Us, Kmart, RadioShack, Walgreens and Brookstone. Most recently, the HEXBUG® Nano™ was featured in The Toy Insider’s HOT 20 TOYS for the 2010 holiday season and has received numerous other influential industry awards.

This lawsuit is in keeping with Innovation First’s history of protecting its brands and products from competitors’ wrongful actions. The company has filed, and continues to file, for domestic and international intellectual property protection for virtually every aspect of the robotic creatures, from their utility and function to their packaging, trade dress and associated accessories and materials. “Innovation First has spent extensive resources to engineer, develop, and perfect the HEXBUG® Nano™, and we won’t hesitate to sue companies throughout the supply chain that attempt to take a free ride off our hard-earned efforts by producing, distributing or selling copycat products,” said Tony Norman, President and Chief Executive Officer of Innovation First International, Inc.

In accordance with the Texas common law of misappropriation, the lawsuit alleges that MGA has copied the HEXBUG® Nano™ motor assembly, components, housing and legs and is using them in the Legend of Nara Battling Bugs toy in competition with Innovation First. Moreover, the lawsuit contends, MGA even copied non-functional portions of the Innovation First design, making the misappropriation even more blatant and obvious. The lawsuit contends that MGA has gained an unfair advantage in competition with Innovation First because it is burdened with little or none of the development expenses or development time that were incurred in developing the misappropriated aspects of the HEXBUG® Nano™. The lawsuit also alleges that MGA has taken undue advantage of the time, labor, skill, money and other resources expended to create the HEXBUG® Nano™. The lawsuit seeks to recover any profits MGA has made, or may make, from the sale of the Legend of Nara Battling Bugs products that incorporate these misappropriated elements of the HEXBUG® Nano™ and may also seek to prevent MGA and those acting in concert with MGA from selling such products.

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About HEXBUG and Innovation First:
HEXBUG® is a product line developed by Innovation First Inc., and distributed and marketed by Innovation First Labs, Inc., both wholly owned subsidiaries of privately held Innovation First International, Inc. The company was founded on the belief that innovation very early in the design process is necessary to produce simple and elegant product designs. Innovation First began developing electronics for unmanned mobile ground robots and is now an industry leader in research and development for the hobby, competition, education and toy markets.

Innovation First International’s three main subsidiaries, VEX Robotics, Inc., Innovation First Labs, Inc. (makers of HEXBUG® Micro Robotic Creatures), and RackSolutions, Inc. span the education, consumer and business-to-business markets. The VEX® Robotics Design System is the leading platform for middle school and high school education and competitive robotics. Leveraging the company’s core competency in electrical and mechanical engineering, the RackSolutions® division works closely with all major computer OEMs to provide custom mounting solutions and industry-wide rack compatibility for data installations of all sizes.

In the 2009 the company added offices in Hong Kong, China and the United Kingdom to better serve the global marketplace. This network was expanded to Canada in 2010 with the addition of an office, warehouse and distribution center located in Toronto. With an advanced in-house metal fabrication plant, distribution center and corporate office located together in a 13-acre complex in Greenville, Texas, the company is poised to continue on a rapid growth path. Please visit www.innovationfirst.com for additional information.

Download this press release here. (PDF)