December 9, 2008

Mattel Inc. Legal Victory over Bratz Dolls

Steve Masur

As the holiday season approaches, a recent federal court judgment has (somewhat) simplified the difficult task of purchasing gifts for pre-teen girls. Mattel Inc. won a huge legal victory on December 3, 2008, when a

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federal judge issued an order permanently barring rival MGA Entertainment Inc. from making and selling its Bratz dolls.

MGA's Bratz dolls have consistently hurt Mattel by undercutting sales of Mattel's Barbie line. In July, a federal Jury in Riverside, California ruled that the Bratz dolls were conceived while their designer was employed at Mattel, and subject to an exclusive employment agreement. This past week, the federal judge Stephen G. Larson ruled that MGA would be permanently enjoined from making, producing or licensing the dolls. The judge further ordered MGA to transfer all dolls and associated products to a location of Mattel’s choosing. The judge’s ruling covered a broad variety of dolls linked to designs claimed by Mattel, including the Bratz line’s main characters. WSJ