The United States Court of Appeals for the Sixth Circuit recently renewed the ability of French entertainment and brand-management company Moonscoop SAS to bring a claim for damages and specific performance against American Greetings Corp. regarding the sale to Moonscoop of American Greetings' rights to cartoon characters the Care Bears and Strawberry Shortcake (those rights, the "assets").[1] The holding reverses, in part, the district court's ruling that American Greetings was entitled to summary judgment that the terms of the sale are expired.

Background

The 2008 Letter Agreement Between American Greetings and Cookie Jar

In 2001, American Greetings entered into a costly long-term license agreement with DIC Entertainment Corporation, which allowed DIC to act as licensing agent for American Greetings’s intellectual property rights in Strawberry Shortcake. DIC subsequently transferred its rights under the license to The Cookie Jar Company, an entertainment and animation company. Pursuant to a 2008 letter agreement between American Greetings and Cookie Jar, Cookie Jar agreed to buy the assets for $195 million, subject to certain conditions. If Cookie Jar failed to do so by Sept. 30, 2008, then American Greetings could, for a period of six months thereafter, seek other purchasers for the assets. Cookie Jar was entitled under the 2008 letter agreement to match any such offers.

View the full story, Takeaways From Moonscoop V. American Greetings, at law360.com.