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The internet-famous TikTok account Sylvanian Drama is now at the center of a real-world legal battle, as its creator faces a lawsuit from the brand behind the toys. If youre unfamiliar, Sylvanian Drama features Sylvanian Family figurines (known as Calico Critters in the U.S.) acting out wild, often dark storylines involving kidnappings, drug abuse, and murder. One of its most viral videos, titled “My marriage is falling apart,” has amassed 22.1 million views. A top comment calls it Shakespearean. @sylvaniandrama #love #drama Mr. Brightside – The Killers Thea Von Engelbrechten, based in Kildare, Ireland, launched the account in 2021. She later dropped out of university as the account exploded in popularity (it now has 2.5 million followers) and has since collaborated with brands like Netflix, Burberry, and Sephora. But in April, the drama left TikTok and landed in court. Epoch Companythe parent brand of Sylvanian Familiesfiled a copyright lawsuit in the U.S. District Court for the Southern District of New York, as first reported by the Irish Independent. The company accuses Von Engelbrechten of copyright and trademark infringement, as well as unfair competition. According to the complaint, Defendant is working to build Sylvanian Dramas own brand image as an advertising and content creation service provider at the expense of Epochs goodwill it has built over decades, Vulture reports. Epoch states that TikTok had removed some videos following a Digital Millennium Copyright Act notice issued in October 2023. However, after failing to reach a lasting agreement with Von Engelbrechten, the company wrote that it had no choice but to file this lawsuit. The case underscores a broader issue: the legal risks creators face when centering content around trademarked brands. Epoch is seeking statutory damages of up to $150,000 per infringed work, in addition to profits generated by the Sylvanian Drama account. A pretrial conference is scheduled for August 14, during which both legal teams will explore settlement options or prepare for trial. Von Engelbrechten has not publicly addressed the lawsuit, and Sylvanian Drama has not posted on any platform since January. (Fast Company has reached out to her for comment.) Meanwhile, fans have flooded the accounts pinned videos with messages of support. Someone make her a GoFundMe, one commenter wrote. Creator Jeffrey Men, creator of the toy company Fancy Teddy, tells Fast Company: Self-expression should be celebrated, not suppressed. As a small, creator-led brand, I stand with anyone reimagining what toys can mean.
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E-Commerce
U.S. wireless carrier Verizon raised the lower end of its annual profit forecast, riding on strong demand for its premium plans and benefits from the Trump administration’s new tax law. Shares of the company rose 3.5% on Monday as it also surpassed Wall Street estimates for June-quarter sales and profit, thanks to a 2.2% rise in wireless service revenue. The telecom major has launched price-lock promotions and broadband-wireless bundles to retain users as competition intensifies from AT&T and T-Mobile, as well as broadband providers Comcast and Charter. Verizon is also benefiting from favorable U.S. tax reform that allows companies to immediately write off the full cost of certain new equipment, finance chief Tony Skiadas said. He estimated the legislation will boost free cash flow by $1.5 billion to $2 billion this year, prompting Verizon to raise its forecast for the metric to between $19.5 billion and $20.5 billion, up from $17.5 billion to $18.5 billion previously. The company now expects 2025 adjusted profit to grow between 1% and 3%, compared with 0% to 3% previously. Verizon pays the highest cash taxes among major U.S. telecoms, Wells Fargo analysts said earlier this month, adding the tax law will provide a big financial boost to the industry. Shares of AT&T and T-Mobile were both up 2.3%. However, Verizon posted a surprise drop of 9,000 monthly bill-paying wireless subscribers in the second quarter, reeling from user churn after price hikes in January. Analysts polled by FactSet were expecting an increase of 13,000 subscribers. To drive growth, Verizon and its rivals have been bulking up on fiber-optic assets that can tap growing consumer data use. Verizon in May won approval from the U.S. telecom regulator for its $20 billion acquisition of fiber-optic internet provider Frontier, after it agreed to end its diversity programs. The sharper focus on internet services helped it post 293,000 broadband net additions in the second quarter. Overall, Verizon reported revenue of $34.5 billion, beating estimates of $33.74 billion, according to data compiled by the London Stock Exchange Group (LSEG). Its adjusted earnings per share of $1.22 also beat estimates. By Harshita Mary Varghese, Reuters
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E-Commerce
A Mississippi law that requires social media users to verify their ages can go into effect, a federal court has ruled. A tech industry group has pledged to continue challenging the law, arguing it infringes on users rights to privacy and free expression. A three-judge panel of the 5th U.S. Circuit Court of Appeals overruled a decision by a federal district judge to block the 2024 law from going into effect. It’s the latest legal development as court challenges play out against similar laws in states across the country. Parentsand even some teens themselvesare growing increasingly concerned about the effects of social media use on young people. Supporters of the new laws have said they are needed to help curb the explosive use of social media among young people, and what researchers say is an associated increase in depression and anxiety. Mississippi Attorney General Lynn Fitch argued in a court filing defending the law that steps such as age verification for digital sites could mitigate harm caused by sex trafficking, sexual abuse, child pornography, targeted harassment, sextortion, incitement to suicide and self-harm, and other harmful and often illegal conduct against children. Attorneys for NetChoice, which brought the lawsuit, have pledged to continue their court challenge, arguing the law threatens privacy rights and unconstitutionally restricts the free expression of users of all ages. The industry group, which has filed similar lawsuits in Arkansas, Florida, Georgia, Ohio, and Utah, represents some of the country’s most high-profile technology companies, including Google, which owns YouTube; Snap Inc., the parent company of Snapchat; and Meta, the parent company of Facebook and Instagram. In a written statement, Paul Taske, co-director of the NetChoice Litigation Center, said the group is very disappointed in the decision to let Mississippi’s law go into effect and is considering all available options. NetChoice will continue to fight against this egregious infringement on access to fully protected speech online,” Taske said. “Parentsnot the governmentshould determine what is right for their families. By Kate Payne, Associated Press/Report for America
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E-Commerce
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