The toy giant that won a global legal war against Lego
In short: In the late 20th century, a Canadian company dared to challenge the world's most dominant construction toy brand. Despite facing international lawsuits over brick designs, they survived by identifying a gap in the market: jumbo-sized bricks for toddlers that were too big for traditional sets.
Founded in 1967 as Ritvik Holdings by Victor and Rita Bertrand, the company initially functioned as a distributor before becoming vertically integrated. By the early 1980s, they led the Canadian plastic injection molded toy market. Seeking growth, Victor Bertrand launched Mega Bloks in 1984. He intentionally targeted toddlers with jumbo-sized bricks, believing his manufacturing expertise would provide a price advantage over established competitors like Lego.
The strategy was an immediate success. By 1985, the brand was available across North America, including a $1 million sale to Toys "R" Us. However, this success triggered a decade of legal warfare. When Ritvik released its 'Micro' line in 1991—which was compatible with Lego bricks—Lego Canada sued for unfair competition. Because Lego's brick shape patents had expired in 1988, the courts eventually ruled that the interlocking design was a functional matter of patent rather than trademark law. Mega Brands ultimately won 14 such cases globally.
The company navigated extreme volatility, including a massive $458 million loss in 2008 and a subsequent recapitalization with Fairfax Financial. In 2014, Mattel acquired the company for approximately $450 million. Today, as a subsidiary of Mattel, Mega Brands manages a diverse portfolio of licenses, ranging from Barbie and Hot Wheels to heavy hitters like Call of Duty and The Witcher, while maintaining its legacy in construction sets under various sub-brands.
The brand's history highlights a key principle in intellectual property: functional designs that serve a technical purpose are often ineligible for trademark protection. This legal reality allowed Mega Brands to coexist with Lego, eventually securing a market share where their Bloks accounted for 11% of worldwide construction toy sales in 2016.
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Sources
- Summary by Intellect · source: Mega Brands
- Also: find-and-update.company-information.service.gov.uk — MEGA BRANDS LIMITED overview - Find and update company information - GOV.UK
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