Will the Bratz case have a chilling effect on creativity?

The basis for Mattel’s court case with MGA over the rights to Bratz was their claim that Carter Bryant, the creator, was an employee of Mattel when he came up with the idea. Under Mattel’s employment contract, any product idea that an employee came up with while in the employ of Mattel belonged to Mattel. The jury agreed and found that Bryant came up with the concept and actually did the initial sketch while employed by Mattel.

Employment contracts of this nature are not unusual. What is unusual is that it came to a trail whose outcome may very well destroy a company. This could have a chilling effect on companies and individuals. If you are a toy company who has been approached with a new product idea by a former employee of another toy company are you opening yourself to a lawsuit if the product becomes successful? If you are an employee of a company and have a great idea for a new product, are you going to stifle that idea out of fear that your employer will sue you?

Toy Nation thrives on the creative energy of individuals. Anything that threatens that creativity is a threat to all of our livelihoods. So, the Mattel verdict, though very good news for Mattel, is sobering news for everyone else.