International brand management firm DIC Entertainment has filed a US$20 million federal lawsuit against Denmark-based Troll Company in the US.

The suit, filed in federal court in L.A. on Wednesday, alleges that the Troll Company committed fraud and wilfully misrepresented its original IP in connection with two brands that DIC licensed from TC, the original 1950s doll – the Good Luck Troll – and the updated Trollz, created by DIC in 2003.

DIC says it successfully created, developed and marketed Trollz, while trying to relaunch the Good Luck Troll. Before taking on the license, DIC says it expressed concern about the appearance of knock-off Trolls on the market that would undermine the brand. But according to DIC, TC repeatedly assured DIC that it had stamped out any counterfeits, even warranting that it was not aware of any infringement of the Good Luck Trolls at the time it entered into the license with DIC.

DIC further alleges that TC knew that the Good Luck Troll was the subject of widespread infringement, with unauthorized sales of counterfeit trolls persisting on a global scale and contends it spent years and close to US$20 million developing and promoting the Good Luck Troll and Trollz on the basis of its assurances from TC.

DIC is seeking US$20 million in damages plus court costs and any punitive damages. TC has yet to respond to the claims.