Rivals in toyland

NEW YORK -- When Manley Toy Quest came out in May 2000 with a $39 silver robotic dog called Tekno, the company expected a sure hit. And it was -- until a slew of knockoffs retailing for half the price started nipping at Tekno's heels just two months later.

"We definitely got hurt," said Brian Dubinsky, the company's president, noting that Tekno's sales dropped 25 percent when retailers started selling less expensive copies. That experience has forced Dubinsky to be more aggressive about getting new versions of his products into stores.

"If there is anyone who is going to copy us, it will be us," said Dubinsky.

It's getting harder to have an exclusive in Toyland, and that's why Manley Toy Quest and other manufacturers are doing whatever they can to protect themselves.

The toy industry is seeing a proliferation of knockoffs reaching stores faster as better technology allows toy companies to copy rivals' designs more quickly. The trend was very evident at this year's International Toy Fair, which offered numerous versions of brand-new toy trends -- bubbles that take longer to burst, spinning tops and a new generation of radio-controlled vehicles.

"People are running out of ideas. The toy industry is stuck," said Ronnie Goldfinger, chief executive officer at Distributoys Inc., a Highland, Ill.-based supplier to toy manufacturers.

The trend is forcing toymakers to be aggressive in marketing.

Hasbro Inc., which has an agreement to sell tops called Beyblades in the United States, is hoping a national TV campaign and demonstrations at skate parks nationwide will give it an edge over rivals like Jakks-Pacific, Playmates, and Bandai, which are coming out with their own versions.

Razor USA, whose scooters and Airpogo sticks have been copied by other manufacturers, decided to keep its latest product under wraps at Toy Fair, showing it only to a select group of retailers. It hasn't shown the product to the press, and asked its package design suppliers to sign a confidentiality agreement, according to Katherine Mahoney, vice president of marketing.

"For young consumers, the whole authenticity in their minds is whether you are perceived as being first -- whether you have a patent or not," she said.