MARKET BRIEFS 1994-11-28

Catalina, APT Settle Patent Suit

Petersburg, Fla., and Advanced Promotion Technologies, Pompano Beach, Fla., have jointly announced a settlement of their 15-month old patent dispute over electronic coupon technology.

The accord ends legal wrangling which began with Catalina's August 1993 lawsuit charging APT's Vision Value Network with infringing three Catalina patents on apparatus and methods for purchase-triggered electronic coupons delivered at point of sale.

The companies said they have agreed to work cooperatively to further the reach of electronic marketing by cross-licensing their patents, enabling Catalina and APT to achieve cross-distribution of their respective systems. APT formally acknowledged the validity of three Catalina patents. No up-front payments were required from either party.

In a joint statement, George Off, Catalina president and chief executive officer, said the company will reinvest its legal expense fund to advance electronic marketing. H. Robert Wientzen, APT president and chief executive officer, added that he is encouraged by this "mutually beneficial opportunity" which will provide the two companies with "the prospect of working together with our retail and manufacturer customers."

Scarlett O'Hara Dolls Licensed

EL SEGUNDO, Calif. -- Mattel here was granted the right to create a line of three Scarlett O'Hara Barbie dolls from Turner Home Entertainment Licensing & Merchandising, Los Angeles. The dolls, based on the character portrayed by Vivien Leigh in "Gone With the Wind," are the first editions to Mattel's new Hollywood Legends Collection of Barbie dolls. One Scarlett doll is available at retail. That doll and two others wearing different costumes from the movie are available only through a 30-minute info-mercial airing nationally on various network and cable channels. Turner will offer a free copy of the video "Hollywood Remembers Vivien Leigh: Scarlett and Beyond" with each purchase of a doll.

Kellogg, MCA Plan TV Series

BATTLE CREEK, Mich. -- Kellogg USA here and MCA Home Entertainment, Universal City, Calif., are jointly launching a new children's television and video series, "The Adventures of Timmy the Tooth." Kellogg's Rice Krispies brand cereal has been designated national sponsor of the MCA/Universal Home Video children's program. A 90-second commercial for the cereal will appear on all videos, marking the first time Kellogg has advertised on a home video. The video will be featured on side panels of the cereal from January through April. Character trading cards will be carried on the back panel of the box. With two proofs of purchase of the cereal, consumers can receive a free video that will not be available at retail. The offer will be promoted on cereal boxes from May through August or while supplies last.

2 New Board Members at APT

POMPANO BEACH, Fla. -- Advanced Promotion Technologies here has elected two new members to its board of directors. Marsh H. Blackburn recently retired from his position as chairman of Sales Force Cos., a food brokerage in Schiller Park, Ill. Ira C. Herbert, former executive vice president of The Coca Cola Co., is currently chairman of the board of directors of Coca-Cola Beverages, Toronto. He also serves as a board member of National Data Corp., Atlanta. Both will serve on the APT board through the 1995 annual meeting; at that time, they may be re-elected.

Video, Cereal Promotion Planned

WHITE PLAINS, N.Y. -- Kraft General Foods here and Republic Pictures Home Video, Los Angeles, will launch an extensive cross-promotion of Nabisco Shredded Wheat cereal and Republic's first fitness video, "Joan Lunden: Workout America," in January. A freestanding insert will drop Jan. 8 in 60 markets offering consumers a cents-off coupon and a $3 rebate with proof of purchase of the video and two boxes of the cereal. The coupon also will be distributed through video package inserts and a national handout in 5,000 supermarkets. The video's packaging will carry pictures of the cereal box to alert consumers to the rebate offer. A 30-second cereal commercial will precede the start of the video. KGF distributes Nabisco Shredded Wheat cereal under license from Nabisco Inc.