Barbie Beats Bratz Dolls In Legal Battle

Mattel Wins Lawsuit Over Rival, Decision Rocks The Toy Industry; Mattel Stock Shoots Up

(AP)  The rowdy Bratz dolls have been evicted. Barbie has regained control of the dollhouse, and shares of toy giant Mattel shot up Thursday.

After a four-year legal dispute with MGA Entertainment Inc., Mattel Inc. touted its win in the case Wednesday after a federal judge banned MGA from making and selling its pouty-lipped and hugely popular Bratz dolls.

"It's a pretty sweeping victory," Mattel attorney Michael Zeller said. "They have no right to use Bratz for any goods or services at all."

Shares of Mattel rose 60 cents or more than 4 percent to $13.80 in early trading Thursday. MGA is privately owned.

U.S. District Judge Stephen Larson rocked the toy industry with his order that MGA must immediately stop manufacturing Bratz. He allowed MGA to wait until the holiday season ends to remove the toys from store shelves.

The decision was a stunning defeat for MGA, which exploded onto the tween scene in 2001 with the edgy dolls and made hundreds of millions in profits, giving Mattel's more classic doll-diva Barbie a run for her money.

MGA planned to immediately appeal the judge's injunction, Chief Executive Isaac Larian said in a written statement late Wednesday.

Larian said the company also intended to ask that the order be stayed until the appeals process is over, so that "we can maintain the over 1,500 people that MGA employs, and continue to give our consumers a product they desire."

The ruling, issued in federal court in Riverside, followed a jury's finding that Bratz designer Carter Bryant developed the concept for the dolls while working for Mattel.

The same jury later awarded Mattel $10 million for copyright infringement and $90 million for breach of contract after a lengthy trial stemming from Mattel's 2004 lawsuit ended in August.

Mattel has fought to neutralize the Bratz line for years. The dolls - with their huge lips, pug noses, almond-shaped eyes and coquettish figures - were an instant hit with young girls. MGA had taken Bryant's original four dolls and spun out a line of more than 40 characters, complete with accessories and related toys such as Bratz Boyz, Bratz Petz and Baby Bratz.

El Segundo-based Mattel has seen sales of Barbie - once a rite of passage for American girls - slide since the doe-eyed Bratz dolls first came on the scene. Domestic sales of Barbie were down 15 percent in 2007.

Both sides had a lot riding on the judge's decision and had worried about the impact of any ruling during the holiday shopping season.

The judge's injunction named all 40 dolls in the Bratz line, including the four originals - Yasmine, Chloe, Sasha and Jade. Larson also ordered MGA to reimburse its vendors and distributors for the cost of the dolls and all shipping charges for sending them back.

During trial, Mattel attorneys said MGA made nearly $778 million on the Bratz line since it was introduced seven years ago, and company Chief Executive Isaac Larian made $696 million through June - but MGA insisted the profits were much less.

The post-trial dispute that prompted Wednesday's ruling centered on whether the jury found that only the first generation of four Bratz dolls infringed on Mattel's copyright or whether all the dolls in the line are in violation.

The jury verdict form only asked panelists to find whether there was infringement and assign a dollar reward, but did not ask them to specify which dolls among the dozens MGA made violated the law.

Los Angeles-based MGA, which no longer makes the first-generation dolls, argued that the later toys in the Bratz line don't violate the copyright and it could continue to sell them.

MGA attorney Raoul Kennedy argued that Larson had the discretion to determine which dolls violated Mattel's copyright. Mattel's attorneys disagreed, saying the court does not have the authority to interpret the jury's findings after the fact.

[emilymhanson]

Quote: "What scares me about this ruling is that the judge ruled that the corporations owned the mind of their employee and the idea that came from it(the mind) after the fact of employment. How does this ruling keep us a free country if a man made entity owns the thoughts of a supposed individual."

If you go to work at a company these days, most likely they will make you sign paperwork and in those forms they tell you that any ideas you have there are not your own. You go into the job knowing that. If that former employee signed such a paper, they knew that full well (or should have known it). If you disagree, don''t work for a company that makes you sign such documents. Some of us have to pay the rent and have little choice.

[indianaman13]

What scares me about this ruling is that the judge ruled that the corporations owned the mind of their employee and the idea that came from it(the mind) after the fact of employment. How does this ruling keep us a free country if a man made entity owns the thoughts of a supposed individual.

[pixiekfrog]

My 9 yr old adores BRATZ & detests the old fashioned style of Barbie. She had a couple Barbies but they rarely saw daylight. They were thrown out in yesterday''s trash,because she resents Mattel for "killiing" the dolls/characters she loves so much. I think MGA should be allowed to sell charaters/dolls that were created after the originals & they should be allowed to create/sell new dolls under the Bratz name. Shame on Mattel for being petty,jealous & childish. They cannot handle the competetion so they sue. I truly hope they don''t think little girls are goning to trade Bratz sassy style for old, tired Barbie. (yawn)

[barbaram99]

I never owned a Bratz doll as they don''t look right. I think Ken needs hair and his legs don''t bend? I thot they did. I have not owned a Ken doll. Even tho the Bratz bolls look awful I am surprised in this nation a judge ordered them stopped. It is like giving it 1 toy maker. I wish they change Babbie Doll''s name to a different one. Next they will tell us named Barbara we can''t use Barbie. Sorry Dad does and will.

[eggy1620]

Just wait until a case identical to this results in life saving medications to be pulled from the market.

[rrozsa-2009]

I never saw the appeal in the Bratz dolls. Huge feet and huge heads.... Although Barbie always did have a giraffe-like neck.... One thing that always bothered me about Barbie and Ken, though: Why doesn''t Ken have bendable legs? Do you have any idea how dumb he looks sitting next to Barbie on the couch with his legs stuck straight out? And he doesn''t wear socks, for goodness sakes!

[barbaram99]

I bever owned a Barbie doll until I became an adult. I have one somesome in my room. To the Christian poster I do not like the half bare skin of the doll so I bought an outfif that covered her swin suit. I do blame the parents for the why the kids dress. I thinh the dolls send the wrong message to girls.
What is wrong with Ameica is she is sue happy. It is worse today.

[nybras]

Mattel dropped the ball and did not run with a good idea. Another company outsells them with the idea they wanted nothing to do with....what to do?
Lawsuit the American way and answer for everything.

[clathrate]

Here we go again with another government enforced monopoly. Screw you Mattel, in capitalism, people are allowed to innovate.

Intellectual property law is going to end innovation in the US, and allow China and Russia to blast past us. Every dollar a lawyer makes off of this nonsense comes directly out of any consumer surplus.

Free markets NOW!

[volleymom3]

My girls have given up their dolls. When my daughters were playing dolls they preferred Bratz. They did not like Barbie. Barbies clothes were just as trashy over the years as Bratz. If you want to blame out kids for dressing a certain way, blame the parents who buy the clothes!

[barbaram99]

Barbie Doll has been with us since I was 4 years old. Dad called me Barbie way before that Barbie Doll hit the markets. I love Mattle to chahge that doll''s name. Barbie is not fitting for it. Nor is the Bratz ones.

[beader59]

And so why wasn''t Barbie the doll pictured in this article??

[mtminds]

And beside making Barbie more christian like, Mattel must make a Breast Cancer Barbie with a double mastectomy. This will help with breast cancer awareness and remove those grossly over stuffed breasts from its dolls. Barbie''s breasts are causing teenage girls to ask their parents for breast implants for Christmas, and causing self esteem issues.

[corkscr3w]

they should be called "***"

No wonder kids are lookin like hoes these days. Look at their dollies!

[drivelphobe]

This is the right conclusion. We all know the kind of people who cheat, lie and infringe on others to make a buck. MGA represents the worst of the bunch. I hope they all go belly up.

[easeup-2009]

I''m sure GI Joe has tapped them all at one time or another....

[pugster]

Looks like Mattel has a patent on making ''big lipped'' dolls.

[matrixrx2003]

Thats Sucks I wanted the Bratz Girls to put the Smack Down on Barbie and see a big girl fight !

Bratz are better then Barbie !