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ARTICLE · 18 AUGUST 2015

Kimble v. Marvel Changes How Patent Licenses Should Be Drafted And Also Diligenced In Transactions

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In 1990, Stephen Kimble obtained a patent for a toy that allowed children and adults to shoot "webs" from the palms of their hands.

United StatesIntellectual Property

In 1990, Stephen Kimble obtained a patent for a toy that allowed children and adults to shoot "webs" from the palms of their hands. Kimble met with the president of Marvel Enterprises, Marvel Entertainment's predecessor, to discuss his toy and patent. Marvel, at that time, created and marketed products that featured Spider-Man. Marvel proceeded to market the "Web Blaster," a toy with functionality similar to Kimble's. Kimble, who was not compensated by Marvel, sued Marvel in 1997 alleging patent infringement. The parties agreed to a settlement pursuant to which Marvel would purchase Kimble's patent for a lump sum of about $500,000 and a 3 percent royalty on future sales of the "Web Blaster" and similar products. The agreement did not set an end date for Kimble's royalty payments.

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