IP Starter

'STIKING' To An IP Strategy
Case Studies - Learning from Local Companies

STIKFAS
“The very backbone of our business is Intellectual Property (IP). At STIKFAS®,
when we create a new product, we first put our money into protecting the IP before anything else, including manufacturing or marketing,” said Mr Ban Yinh Jeow, founder and Chairman of STIKFAS®, a home-grown toy company.

Even though the company is just 5 years old, it has already made a global impact on the toy industry, selling its products in various regions and countries including Africa, Australia, Canada, Europe, Hong Kong, Japan, Korea, the U.K., the U.S. and of course, Singapore. The company has built up a loyal fan base, ranging from teens to adult toy collectors. STIKFAS® has developed over 70 action figure products and sold over 1 million units to date.

STIKFAS® IP Portfolio

STIKFAS® has built up an impressive IP portfolio, which encompasses patents, trade marks, registered designs and copyright. The company was one of the first few to apply for a registered design in Singapore. In addition, STIKFAS® has been awarded a US patent for its proprietary ball-and-socket invention, which is a fundamental component in its action toy figures. Whilst this is indeed a highly useful patent for STIKFAS® to possess, the company believes that the major IP asset responsible for bringing the company forward would be its trade marks.

“Trade marks are the face of the brand. We have registered trade marks for the STIKFAS® name, the logo and for certain products’ names, such as the KootiKooti™ wrestling stiks and Cuboyds™, a 3 inch pre-assembled figure. We have also trade marked specific words, such as our slogan ‘It’s Simply Fun’,” explained Mr Ban.

While STIKFAS® relies on IP lawyers for advice, the company has become IP-savvy through years of experience and is also able to handle certain IP matters on its own. For example, when a new action figure design was developed, this was
automatically protected by copyright law. STIKFAS® accumulates all design sketches, photocopies 2 sets and sends them via registered mail back to the
company. This is a common practice that could possibly contribute as evidence
of authorship. Note however, it is by no means a foolproof method. In the event of a dispute, it is left to the Court to decide if there is indeed sufficient evidence of originality. STIKFAS® is also aware that once these designs have been selected to be manufactured into action figures; there will no longer be copyright protection for the selected designs as the company will have to formally register the design with IPOS for protection under registered designs.

IP Infringement

STIKFAS’® in-depth IP knowledge is due partly to its experience in IP infringement cases. These cases include a company from Hong Kong that infringed STIKFAS® ball-and-socket patent, a small US company that tried to leverage upon the brand
and tap into the company’s fan group, and a China-based company that copied the entire packaging for its similar action toy figure. Whatever the level of infringement, STIKFAS® is always proactive in enforcing its rights as an IP owner. Letters are duly served to the infringing parties and further legal action has been pursued in some cases.

“When dealing in IP infringement, it is important not to get too caught up in the matter, and take your eye off your own business. Intellectual property management works hand-in-hand with our business strategies. So it is not always a headlong charge into litigation. We’d consider all aspects of the infringements, the party in question and the nature of their business and we’d consider our options and strategies to enforcing our rights.

There is no single approach that works for all cases, but as a matter of due diligence to reserve our rights, we would always begin by informing them that they have infringed our IP and that they should ‘cease and desist’. Their responses would
determine the next steps we take in our legal action,” said Mr Ban.

Marketing its Products

This focused strategy has allowed STIKFAS® to concentrate its resources in getting its products out to the world. The company has leveraged upon the expertise of some of the leading toy companies, through licensing and distributorship deals. From 2002 to 2004, STIKFAS® licensed its core products exclusively to Hasbro, which launched the toy in international markets. While the licensing for the original STIKFAS® brand has since been withdrawn, the STIKFAS® ball and socket concept is still licensed to Hasbro for another codeveloped brand called Xevoz. In 2003, STIKFAS® entered Japan, under a distribution deal with TOMY Direct Co. Licensing of the STIKFAS® IP not only applies to plastic products, but also to media. In 2006, STIKFAS® together with MediaCorp (Singapore) TV12 KidsCentral developed a short animated content based on STIKFAS®, called “The Amazing Adventures of Super AL and Friends”. To date, three pilot clips have been aired on KidsCentral while a full length series is in the works. This collaboration is a mutually beneficial move that leverages on the success of a product based IP to create original media
content.

The Force behind its Brands & Business

“80% of STIKFAS® assets go home every night – it is the people. They dictate the future health of the business.” said Mr Ban. “In terms of motivating ataff to be innovative and develop new products, it all boils down to finding the right people, with the creativity and right culture that will fit into the company.”

Materialising ideas into products, STIKFAS® recognises the importance of human creativity as its driving force and incorporates a corporate culture where creativity is valued. To protect its intellectual assets, STIKFAS® employees are required
to sign Non-disclosure Agreements (NDAs).

Moving forward, Mr Ban comments “We have become a force in a small way and everyone knows we are from Singapore. STIKFAS® has carved a page in the history of toys, where we have taken toys back to their roots, focusing on fun and playability.” STIKFAS® certainly looks set to pave the way for future creative potentials in Singapore to expand into the global arena.