Laser Pegs has filed a legal complaint against Lite Brix.
The company is taking legal action against Lite Brix for alleged willful infringement of a patent, trade dress infringement and common law unfair competition.
The light-up construction toy brand Laser Pegs (pictured), which was formed three years ago, filed the lawsuit in October 2012.
Laser Pegs argues that during a toy expo in 2011, Jon Capriola, the creative mind behind the brand, was approached by Larry Rosen of Larose Industries LLC with an interest in investing in Laser Pegs.
According to Laser Pegs, after a few meetings to discuss the possible substantial investment, Rosen broke off ties with Capriola and later "secretly created and marketed Lite Brix".
However, Lite Brix says that it does not infringe on Capriola's patent on Laser Pegs.
Lawrence Rosen, Chairman of LaRose Industries and owner of Lite Brix light building systems and Cra-Z-Art brands, has pledged to "vigorously defend against these proceedings".
"Jon Capriola completely misrepresented his patent and his claims are without basis in law or fact," he said.
LaRose has filed two proceedings in the US challenging the validity of the patent-in-suit.
A statement added: "We will stand by and protect our customers throughout this litigation process, while continuing to develop and market creative, innovative and exciting products like the Lite Brix building system."
Goldfish & Bison distributes Laser Pegs in the UK, while Character Options supplies Lite Brix to the trade.
A statement from Character offers: "As UK distributors of Lite Brix, Character Options refers to the statement issued by Cra-Z-Art on January 28th, 2013, which refutes the claims made by Laser Pegs.