Mensa(ns) in the News

Posted in Mensa In The News on July 2, 2004

Thanks to M-Morsels and AMLNewsFlash for these tidbits:

• A Louisville, Kentucky Courier-Journal article on volunteering features a long-time Mensa member [Update: broken link removed].
• American Mensa has settled its suit with Carlton Books over the use of the Mensa name and logo on publications. Click ‘Read More’ below for all the details.

From Jean K. Becker, American Mensa Chair (June 27, 2004)

American Mensa Ltd and Carlton Books Ltd have entered into an agreement settling a lawsuit AML filed in December 2003 over the use of the Mensa name and logo on publications sold in the United States.

Under the terms of the agreement, Carlton paid AML $130,000 to reimburse in part for legal expenses of the suit and has agreed to pay reasonable royalties in the future and to obey restrictions regarding the future use of the Mensa name and logo in this country. AML and Carlton have agreed on a list of previously published titles that may continue to be reprinted. As part of the agreement Carlton will submit all titles to be published in the U.S. to AML for a quality review prior to publishing.

The publisher may not introduce new products into the market or sell titles other than those currently approved. Carlton also agreed to a nine-month “sell-off period,” during which they and their subsidiaries and distributors in this country may sell any Carlton items remaining in their stock. After that period has expired, Carlton will destroy or remove from the U.S. any stock other than the approved titles. Then Carlton will begin a ten-year contract period during which it may sell the approved products in the U.S. All future royalties will be sent to Mensa International Ltd. Under a separate previous agreement among AML, British Mensa Ltd and MIL, royalties on all publications sold bearing the Mensa name and logo are divided among MIL and the national Mensas in the countries where the products are sold.

Q1: Why did we sue Carlton?

We had tried for several years to resolve the issue of these books without resorting to legal action, but we were unsuccessful in those attempts.

Q2: How did this all start?

In several contracts between 1992 and 1995, British Mensa gave Carlton the right to use the Mensa name and logo on puzzle books in all countries. The contracts were improper because BML didn’t own the U.S. rights. A subsequent 1996 contract between AML and BML was supposed to limit Carlton’s U.S. activity. That contract expired in 2000 and Carlton continued to expand its U.S. use of the Mensa name and logo despite AML protests and threats of litigation.

Q3: What was wrong with the books that we wanted to stop Carlton from selling in the U.S.?

There were problems with the quality of some of the materials, including books, cards and puzzles that we had been unable to resolve with Carlton. These books also caused AML’s current contract with Sterling Publishing to be less valuable.

Q4: What will AML do with the money from this lawsuit?

We didn’t enter into this lawsuit for monetary gain. Carlton’s agreed $130,000 payment to AML will mostly be used to cover our legal expenses in reaching this solution to the issue.

Q5: How much has AML earned in royalties from these publications and will that amount be less because of this suit?

Starting last year, royalties on publications bearing the Mensa name and logo are divided among MIL and the national Mensas in the countries where the products are sold. MIL will continue to receive royalties on the approved titles for the duration of our current agreement with Carlton, i.e., 10 years. In the past, British Mensa paid AML a portion of its royalties, based on U.S. sales. The payments were sporadic but, based on information supplied, complied with contract terms. It is reasonable to assume that, since there will be fewer Carlton products being sold in this country, our royalties may be somewhat lower; but the quality of the publications has always been the issue - not the amount of royalties received. AML now has direct control over the quality of all books Carlton will be allowed to distribute in this country.

Q6: I heard Carlton is going to sue British Mensa and Mensa International to get back the money we’re costing them. Why are we doing this if we’re going to hurt other Mensas?

British Mensa publications have said they have to reimburse Carlton for part of the AML settlement. While we are aware that this was said, we have no details about it. We have urged British Mensa to work with us in resolving the issue with Carlton. They declined to do so and, in fact, we believe they consulted continuously with Carlton throughout the process and they argued against any sanctions against Carlton, contending that any AML actions would result in a devastating Carlton lawsuit against BML. Part of the agreement between Carlton and AML is that Carlton specifically said they will not sue AML, BML or MIL as a result of anything in this suit.

Q7: How many products are affected by this suit, i.e., how many were being sold before and how many will be sold now?

It’s not possible to determine the actual number of units that may be sold in the future, and there is disagreement about how many Carlton books were being sold prior to this agreement because some were repackaged versions of the same publications. Carlton may sell up to 30 for the duration of the current 10-year agreement.

Q8: What are the other “Mensa” books I see?

MIL, BML and AML have entered into a renewable five-year agreement with Sterling Publishing, a subsidiary of Barnes & Noble, giving them exclusive worldwide rights to use the Mensa name and logo on a minimum of 12 books per year books in the English language. This contract excludes the books previously published by Carlton. This contract is estimated to be worth over $90,000 in royalties over five years.

Q9: Who gets the royalties from these new books?

The royalties are divided with 55% going to the country in which the products are sold, and 15% each to MIL, BML and AML for administration of the license.