Both groups are suing ASX hopeful Redbubble, an online sales platform, for allegedly ripping off their respective intellectual property.

Japan's The Pokemon Company International has launched action in the Federal Court in Victoria against Redbubble alleging it has breached its intellectual property by selling products that have images that belong to Pokemon.

From Pikachu, to Bulbasaur, to Clefairy and Eevee, 29 of the hundreds of Pokemon characters have turned up on products available on Redbubble's website, Pokemon alleges. More characters also appear on the site, but Pokemon has limited its claim to make it easier for the court, according to its statement of claim.

It's seeking damages or orders that Redbubble provide it with an account of profits made from the sale of Pokemon-related products on its site.

'Flagrant infringement'

Pokemon alleges the names and the images of its characters, in whole or in part, are its copyright and Redbubble's actions have crimped its sales in Australia.

"Redbubble has infringed Pokemon's copyright ...The infringement was flagrant," according to Pokemon.

"Unless restrained by this Court, Redbubble threatens and intends and will continue its unlawful conduct."

According to its statement of claim, Pokemon contacted Redbubble about its alleged breach of copyright in January 2011 and again in 2015, but Redbubble "refused to give the undertakings sought or to pay damages".

Fairfax Media identified hundreds of Pokemon-related products including T-shirts and hooded jumpers available for sale on Redbubble this week.

Pokemon's writ is also littered with examples of the allegedly infringing T-shirts and hoodies.

Millions of visitors

Redbubble itself does not make the products, rather under its business model Redbubble allows 'artists' to upload their products to its website for sale. Redbubble then retains a proportion of the sale price of every Redbubble product sold through the website.

According to the company's prospectus it is "well on the way to being the largest such marketplace" with  more than 399,000 selling artists and 57 million unique visitors to the website in 2015.

Pokemon alleges Redbubble misled the public by using sponsored ads on Google to promote Pokemon products being sold by Redbubble, despite the product being counterfeit.

"A search of Google for 'Pikachu shirt' conducted on 3 February 2016 resulted in the identification of eight sponsored links. Six of those sponsored links were to products sold by Redbubble," Pokemon alleges.

Pokemon alleges searches of Pokemon products on Redbubble's platform turned up 43,528 search results, while a search for "Pikachu" delivered 11,564 products. Searches for products under the banner of other Pokemon characters found tens of thousands of results.

"Redbubble has, in trade and commerce, engaged in conduct which is misleading or deceptive," Pokemon alleges.

Defending claims

When contacted by Fairfax Media  by email, Martin Hosking, the man behind the internet sensation, said "my only comment is that we are defending all claims".

It's not the first time Redbubble has gotten into trouble for products loaded up to its site by artists.

In 2011, it hit the headlines for its range of clothing, including baby rompers, with images of Hitler and other tasteless products, including those featuring serial killers.

Redbubble's sale of Hitler images led to its adviser, Arnold Bloch Leibler, which has historical links to the Jewish community in Australia, severing its ties with Redbubble.

In 2014, the group was warned by the federal government for selling a range of  Anzac tribute T-shirts including "Anzac Kin", "Anzac Descendant" and "Thank you Anzacs. Lest we forget April 25".

The site still sells several T-shirts bearing the phrase "Lest We Forget" and also lines from the Ode of Remembrance, including a black shirt bearing "At the going down of the sun and in the morning we will remember them" on its front.

And as revealed by Fairfax Media last year, Redbubble is also being sued by the Hells Angels for breach of intellectual property. That matter was heard earlier this year and judgment has been reserved.

Listing hopeful 

The legal actions, outlined in Redbubble's supplementary prospectus, could cause issues in the future for the company which is in the process of raising $39.8 million to list on the ASX.

Redbubble plans to list on May 18, and if the raising is successful the company's market capitalisation will be $267.7 million.

Redbubble's updated supplementary prospectus provides more detail on the potential financial impact that could arise from unfavourable findings against it in the separate actions.

"While the company has attempted to set up all aspects of its business with the intention of complying with all relevant laws and is currently defending all claims made by Hells Angels, litigation is inherently uncertain and there is a risk that the case may result in an unfavourable judgment if Redbubble's defence of the claim is unsuccessful (in whole or in part)," the prospectus says.

Redbubble says the Pokemon action could also have "a material adverse impact on the company's business, financial performance and operations".

Any court  judgment would eat into Redbubble's already meagre bottom line.

While Redbubble forecasts its revenue will hit $114.5 million in 2016, the company points out in its prospectus it made a pre-tax loss in 2015 and is expecting to record pre-tax losses in 2016 and 2017.