Verdicts & Settlements

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Mattel wins $100 million copyright verdict


Published: September 8, 2008

A federal jury in California has awarded $100 million to the Mattel toy company in a copyright infringement suit against MGA Entertainment Inc., maker of the popular Bratz dolls.

The jury concluded that the original drawings for the Bratz dolls were developed by designer Carter Byrant before he moved from Mattel to MGA.

Mattel asked the jury to award $1.8 billion for lost profits and breach of contract, but the jury went with the much lower figure suggested by MGA, agreeing that the company contributed a great deal to the profits through marketing and design modifications.

The verdict found for Mattel on three separate causes of action – intentional interference with contractual relations, aiding and abetting breach of fiduciary duty, and aiding and abetting breach of the duty of loyalty. It awarded $30 million for each offense plus an additional $10 million for copyright infringement.

MGA has indicated it intends to appeal and has also asked the judge to reduce the verdict to $40 million, arguing that the three $30 million awards are duplicative. The company also believes the verdict does not affect its right to continue to produce the dolls.

After their introduction in 2001, the Bratz dolls, with their popular pouty look, exploded in popularity among the pre-teen market. The highly stylized fashion dolls have oversized feet, heads and hands, curling lashes and huge almond-shaped eyes daubed with exotic-colored eyeshadow.

In the past seven years, MGA has built the popular brand to include more than 40 characters and expanded it with spin-offs such as Bratz Babyz, Bratz Petz, Bratz Boyz and items such as helmets, backpacks and bedsheets.

Sales of Mattel's Barbie dolls – a near rite-of-passage in American girlhood – have slid since Bratz came on the scene. Domestic sales of Barbie were down 15 percent in 2007 and 12 percent in the first quarter of 2008.

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