The Battle Over the Sea Monkey Fortune
nytimes.com
nytimes.com
The branded humbug is specifically designed to make the mundane seem more interesting, even to the point where someone would actually buy brine shrimp as pets.
As a business, breeding brine shrimp for the toy market alone is worthless. You also have to package the reason for someone to buy them, which is the story that makes them a catalyst for the imagination.
It's why you can take two copies of the same doll, dress one up as Mr. Milquetoast, forensic accountant, and the other as Muscles McUltrahero, beloved comic book character, and see such a dramatic difference in sales.
Obviously, Big Time Toys saw no value in the product itself, as they changed suppliers. The entire value of the box is in the brand, which they stopped paying for.
As much as I enjoy the schadenfreude that I feel when I see con artists cheat each other, I have to come down of the side of the underdog with the moxie to sell people fluff and nonsense and still make them love it. Big Time isn't selling Amazing Live Sea-Monkeys (TM) any more. They're selling cheap Chinese brine shrimp.
Rather than $5-$10 million a year in brine shrimp sales.
Because your mark does another con on your behalf to get the money, which works because they have absolutely no idea that they are just a catspaw in your own con.
The company that owns the Sea-Monkeys trademark, Transcience, contracted with another company, Big Time Toys, to handle the 'fishbowl' kits, marketing, and distribution. Transcience continued to provide the brine shrimp, which the company says are specially bred to handle the rigors of postal transport better than other brine shrimp.
Big Time Toys had the option to buy out Transcience completely for $10 million, with $5 million as a lump sum and the rest paid as a percentage of yearly profit.
In 2013, Big Time Toys stopped paying towards the $10 million, stopped buying the brine shrimp from Transcience (they switched to Chinese suppliers), and kept using the Sea-Monkeys name for their products.
Big Time Toys claims that the money they've paid Transcience for brine shrimp counts for the buyout, and that they now own Transcience (and its trademarks).
They enter into an agreement for a buyout and then after a series of say 3 or 4 payments simply declare they own the company now and start using the trademarks and logo and effectively push out the original company.
If I owned a small company and was engaged in some form of agreement like this I'd be petrified something similar would happen.
Either that or you go into it just hoping to get all of the money, but you make sure that the up-front money is enough to keep you floating down the river.