LEGO Research Paper: Part 4

I milked the essay for all that it was worth. I present to you the final chapter of the series as well as my sources. The book Brick by Brick, one of the books used for research, is a good read. I highly suggest you pick it up.

How Globalization has Affected LEGO

            The globalization of the LEGO brand lead to many issues for the company. They have to fight the increased production of LEGO-like products in China. The introduction of the LEGO brick to other countries introduced it to a new audience. These audiences are located around the globe, and many have different economic situations. Generally, many are greatly impressed by the quality and the durability of the products, while others are put off by the higher prices of the LEGO products. Because people clamored for cheaper LEGO products, some got the idea to produce similar products with lower prices, but without a license. The creation of LEGO knock-offs is greatly affected by the Chinese economy as well. There are lower production costs for manufacturing in China and, because of the lower prices, almost all companies have parts manufactured in China. One look at the back of a Mega Construx product will show a label that reads, “Manufactured in China.” Even LEGO has built a factory in China. The spread of the LEGO product lines all over the planet has not hurt LEGO; it has increased their profits. But globalization has also increased their awareness of the clone products and that they need to protect their intellectual property.

            The LEGO Group began as a small Danish company that produced wooden toys. They grew into the plastic-bricks giant known today. The company became a powerhouse, and it was obvious that a profit could be made from copying the iconic bricks. The company globalized and many were introduced to the bricks. When the patent expired, a plethora of companies sprung up producing their own copies of the LEGO brick. The LEGO Group would attempt to protect the design of their products with varying degrees of success. The exact design of the brick is no longer protected as the patent of the brick expired, so any company can create their own bricks. The dispersion of the LEGO brick across the globe has proven to be a good move for The LEGO Group. However, it has created a market where many companies neglect intellectual property laws and sell unlicensed copies. The LEGO Group has been spending a great amount of time and money this over the past twenty years to protect their intellectual property. LEGO’s protectiveness has paid off. It has created competitors that want to create their own ideas and products. This leads to a diverse range of products for consumers and creates a world where children can build with any toy they want, from their favorite video games to their favorite movies, because there are many companies with many products, prices and ideals. 

Works Cited

Austen, Ian. “Building a Legal Case, Block by Block.” The New York Times, 2 Feb, 2005. www.nytimes.com/2005/02/02/business/worldbusiness/building-a-legal-case-block-by-block.html?_r=0. Accessed 18 May, 2017.

Bhattacharya, Ananya. “LEGO opens its first toy brick plant in China.” Quartz, 28 Nov, 2016.  qz.com/846984/lego-opens-first-toy-brick-plant-in-china/. Accessed 22 May, 2017.

Joffe-Walt, Chana. “Why Legos Are So Expensive — And So Popular.” NPR, 13 Dec, 2012. www.npr.org/sections/money/2012/12/13/167055503/why-legos-are-so-expensive-and-so-popular. Acessed 22 May, 2017

Lipkowitz, Daniel. The LEGO Book. 2009. Dorling Kindersley, 2012.

Hagar, Erin. The Inventors of LEGO Toys. Duo Press, 2016.

Kirkbi AG v. Ritvik Holdings Inc. 3 S.C.R. 302. Supreme Court of Canada. 2005. Supreme Court of Canada. www.canlii.org/en/ca/scc/doc/2005/2005scc65/2005scc65.html. Accessed 14 May, 2017.

“LEGO loses Trademark Battle in Canada.” Smart & Biggar/Fetherstonhaugh. 18 Nov, 2005. www.smart-biggar.ca/en/articles_detail.cfm?news_id=157.   Accessed 18 May, 2017.

Robertson, David C. Brick By Brick. Crown Buisness, 2013.

Seay, Gregory. “Lego locked in domestic copyright fight.” Hartford Business, 30 Jan. 2012.  www.hartfordbusiness.com/article/20120130/PRINTEDITION/301309998/lego-locked-in-domestic-copyright-fight. Accessed 15 May, 2015.

Sprigman, Christopher, and Raustiala, Kal. The Knockoff Economy. Oxford University Press, 2012.

Stim, Richard. Patent, Copyright & Trademark. 10^th Ed., Nolo, 2009.

Vaidhyanathan, Siva. Copyrights and Copywrongs. New York University Press, 2001.

W, Christian. “Fierce copyright battle mars LEGO’s push in China.” The Copenhagen Post, 1 Dec, 2015. cphpost.dk/news/business/fierce-copyright-battle-mars-legos-push-in-china.html. Accessed 17 May, 2015.

Wolff-Mann, Ethan.  “Lego Sets Have Been a Better Investment than Gold Since 2000.” Time Money, 28 Dec. 2015 time.com/money/4162059/lego-investment-compare-gold-return/. Accessed 19 May, 2017.