Spin Master Achieves Court Victories Against Bunchems Copycats

TORONTO, May 2, 2017

Spin Master Ltd. (TSX: TOY), a leading global children's entertainment company and the manufacturer and distributor of the award-winning activity toy Bunchems®, announced today that it obtained a global settlement with the Dutch company High5 Products B.V. wherein High5 agreed that it would no longer manufacture or sell its Linkeez product, a copycat of Spin Master's Bunchems toy.

This global settlement arises as a result of two injunctions issued in favour of Spin Master. On January 12, 2017, in the first European court case involving the enforcement of the intellectual property rights protecting the Bunchems toy, the District Court of Amsterdam ordered a preliminary injunction against High5 prohibiting them from further sales of Linkeez. This was followed on January 31, 2017 by another preliminary injunction issued by the courts in Germany prohibiting further Linkeez sales by High5 in the German territory.

Following these injunction orders, Spin Master and High5 reached a settlement by which High5 accepted the following obligations:

• a worldwide injunction backed up by penalty payments;
• the provision of all relevant information about its suppliers and customers;
• compensation to Spin Master for damages suffered;
• an acknowledgment of the validity of Spin Master's European Design registration no. 2 614 669 - 0002 and Copyrights for Bunchems, and the fact that High5 has infringed upon that Design and the Copyrights by selling its Linkeez products and accessories.

Spin Master is also pleased to announce that a preliminary injunction has been issued by the Polish court under Spin Master's European Design registration no. 2 614 669 - 0002 against one of the largest Polish retailers concerning that retailer's further sales of the Clingabeez product which it has been marketing and selling in its stores throughout Poland. The decision is not final yet, however in granting the preliminary injunction the Polish court indicated that the Clingabeez product is almost identical to Spin Master's European Design registration.

"Bunchems was developed in-house and highlights Spin Master's extraordinarily talented team who consistently push the boundaries of innovation, creativity and fun in new and unexpected ways," said Ben Gadbois, COO and Global President. "Bunchems is an award-winning toy and it is critical we protect our importers and distributors, and ensure the integrity and quality of our products for our consumers."

The company has been particularly successful in China where most of the copycat products are being produced. Working closely with the China Market Supervision Administration, Administration for Industry and Commerce and local Intellectual Property Office staff, Spin Master has successfully shut down 14 manufacturers and seized over 50,000 infringing copies of Bunchems products. These efforts in China are in addition to the actions being taken in Europe where Spin Master has worked with European Customs to seize over 180,000 infringing copies.