Hasbro must pay millions to Super Soaker inventor

The nuclear engineer who created the toys claimed the company violated an agreement to pay him royalties.

By InvestorPlace Nov 8, 2013 2:30PM

Credit: © John Bazemore/AP

Caption: Toy inventor Lonnie Johnson poses with his creation ‘The Super Soaker’By Christopher Freeburn


Hasbro (HAS) will have to pay a Georgia company millions of dollars after underpaying royalties for a popular line of toy guns.


An arbitrator has awarded Johnson Research and Development and founder Lonnie Johnson (pictured) $73 million in unpaid royalties. The company and its founder claimed that Hasbro failed to pay all royalties due on certain Nerf toys between 2007 and 2012, The Atlanta Journal-Constitution reported.


An attorney representing Johnson Research expressed satisfaction with the decision, noting that “we got everything we asked for."


Johnson had agreements with Hasbro covering the Nerf N-Strike and Dart Tag brands, as well as an earlier agreement under which he was to receive royalties linked to the Super Soaker line of water guns.

The latter agreement was the subject of a U.S. District Court lawsuit for breach of contract, filed in February.


The Super Soaker -- created by Johnson in 1982 -- was one of the most popular toys of the 1990s, including being America's best-selling toy from 1991-1992.


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26Comments
Nov 8, 2013 4:28PM
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Guess Hasbro got soaked on this one huh !
Nov 8, 2013 4:09PM
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Good for him.  I just don't understand why a large company would fail to honor it's contractual agreements.  Nothing good can come of under payment of failure to pay.
Nov 8, 2013 4:46PM
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WTH?? Hasbro is ripping people off now? Honestly like they have nothing better to do with their time or money than to pay for high cost lawyers that lose cases just to save a buck? The idiots should have noticed they were not paying their dues to this man in accounting and brought it up to their managers. Seriously is this where our world is heading? Disgusting if you ask me. Good for Johnson to win. He deserves it.
Nov 8, 2013 4:35PM
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Greedy Ba$tards!!! Never ceases to amaze me!!!
Nov 8, 2013 4:45PM
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A lady I know worked in "Accounts receivable" in a medium size corporation, and said the worst accounts to get to pay were, you guessed it, large corporations!
Nov 8, 2013 5:32PM
Nov 8, 2013 6:09PM
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Great news .To bad they have to pay the lawyers
Nov 8, 2013 8:33PM
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I've had a ton of super soakers over the years... my brother and I actually had the two guns pictured the mighty CPS-2000 and its little brother the CPS-1000.

Not a fan of how Hasbro "nerfed" them, the new ones look really weak. Glad the inventor of the original technology got his just reward

Nov 8, 2013 5:57PM
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Gee.  Figure it out.  Hasbro made numero mega bucks in interest money on this by holding onto the funds and not honoring their contract.  No one cares about honor anymore.  It isn't like this generation isn't going to purchase their products.
Nov 9, 2013 12:13PM
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I see one person tried to turn it into racial inequality...That's not what it's about, it was big money taking advantage of the "little guy.".....It is happening everyday and as we speak...

 

I don't think Hasbro dreamed up; "Yeah, lets get that Black guy.." ??

Nov 8, 2013 4:58PM
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Corporations are people too my friends.

 

 Yes they are Mr. Romney and because they are so good and pure they would never, ever think to stomp on the little guy or their employees.

Nov 16, 2013 6:47AM
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As long as the dividend is not affected I am not selling.
Nov 16, 2013 6:46AM
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"Touch me" Elmo will make up for it at Christmas. Lol. This weeks South Park was legendary. 
Nov 8, 2013 11:29PM
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This has been going on for years and is not the only person they so to speak under wrote.

 

 

Nov 8, 2013 5:41PM
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"WTH?? Hasbro is ripping people off now?" Not now they always have been only THE HUB as apart  of hasbro has not ripped people off and I don't thin they will. Just talk to a Brony like me.
Nov 8, 2013 10:16PM
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Hasbro thought they can take advantage of an african american inventor. Hasbro really put their foot up their asses on this one! Now your stocks are in the red!...lol!!!
Nov 8, 2013 11:11PM
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All guns are to be used on Repukelicans, Neo-Nazi-Cons, Looneytarians and Teabaggers only. It's the law of the land.

God bless America!

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