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Bratz placed in court-ordered receivership

By Staff -- Gifts and Dec, 4/28/2009 8:22:00 AM

RIVERSIDE, Calif.—MGA Entertainment’s Bratz business has been placed into federal receivership following a court ruling late Monday upholding last year’s $100 million jury verdict against MGA over rights to the doll franchise.

The decision by U.S. District Judge Stephen Larson directs the government to dictate by whom and how Bratz dolls will be sold going forward. A hearing scheduled for May 18 will determine whether the receivership will be temporary or permanent.

MGA will appeal the ruling, according to the Associated Press.

Patrick A. Fraioli, a partner at the Beverly Hills, Calif.-based law firm of Ervin Cohen & Jessup who was appointed Temporary Receiver in the case, said: "I look forward to working with MGA and [MGA Entertainment CEO Isaac] Larian to accomplish the Court's objectives, which include preserving and maximizing the value of the assets of MGA for all of the companies' key constituencies, and avoiding, as much as possible, any disruption for those doing business with MGA."

The decision is the latest twist in a four-year legal drama over copyrights to the doll line that sought to establish whether Bratz’s creator, Carter Bryant, birthed the Bratz idea while still technically employed by Mattel. Last summer, a jury ruled Bryant was a Mattel employee when he created the Bratz concept and subsequently awarded the world’s largest toymaker $90 million for breach of contract and $10 for copyright infringement.

Late last year, Larson ordered MGA to end its sales of Bratz dolls by February of 2009, but later granted MGA rights to continue marketing the doll line through the end of the year.

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