>> The guy who originally made them didn't copyright or patent and the guy with the knock offs got a patent then.... sued the original maker.
Someone's council needs to be disbarred if that's the "whole story". And regardless, the original manufacturer can still have the patent overturned.
Look up "prior art". A patent can't be had where there's prior art.
In this case, it's not patent protection, it's trademark and copyright. And we don't even know who the "original" was, I suspect, so there's really no way to be calling this unless someone here has had prior art searches done.