MGA wins Bratz back from Mattel in appeal

Playthings Staff -- Gifts and Dec, July 23, 2010

VAN NUYS, Calif. - The Ninth Circuit Court of Appeals confirmed Thursday that MGA is the owner of Bratz, not Mattel.

Chief Judge Alex Kozinski, speaking on behalf of a unanimous panel, endorsed all of the arguments that MGA has been advancing throughout the litigation, and found that "it is not equitable to transfer this billion dollar brand - the value of which is overwhelmingly the result of MGA's legitimate efforts -" to Mattel.

In handing MGA a sweeping victory with its 24-page opinion, the Court upheld the rule of law, finding that "because several of the errors we have identified appeared in the jury instructions, it's likely that a significant portion - if not all - of the jury verdict and damage award should be vacated."

"Unlike the relatively demure Barbie, the urban, multi-ethnic and trendy Bratz dolls have attitude," Chief Judge Kozinski wrote. The Ninth Circuit concluded by noting that "America thrives on competition; Barbie, the all-American girl, will too."

MGA agrees with that sentiment.

"We look forward to bringing that competition with the re-launch of a stunning new line of Bratz products, along with Moxie Girlz, Moxie Teenz, Bitty Buttons and BFC, Ink to store shelves in August," said MGA President and CEO Isaac Larian.

"I would also like to add that I am grateful and thankful to all the employees of MGA and their families who stood by me and my family during this ordeal, as well as to our extraordinary team of lawyers from Orrick, Herrington & Sutcliffe and Skadden, Arps, Slate, Meagher & Flom, who fought so hard to restore belief in the American justice system and the priceless value of the American dream," continued Larian. "To that I must also add my gratitude to the retailers and all of our suppliers. I thank you all."

The popular hip dolls debuted in 2001 from MGA.

However, Mattel and MGA have been in legal battles over the brand, over copyrights to the doll line that sought to establish whether Bratz's creator, Carter Bryant, came up with the Bratz idea while still technically employed by Mattel.

Mattel filed a lawsuit against Bryant in 2004.

In summer 2008, 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.

A few months later, MGA was ordered to end its sales of Bratz dolls by February 2009, but was later granted rights to continue marketing the doll line through the end of the year. Another extension was granted after that.

In April 2009, the Bratz business was placed into a federal receivership, upholding that verdict against MGA over rights to the doll franchise.