Jury rules for Mattel in Bratz doll case (International Herald Tribune)

RIVERSIDE, California: Mattel won a nearly complete victory Thursday in its federal copyright infringement case against a rival, MGA Entertainment, over which toy maker owns the original drawings for the $1 billion-plus Bratz fashion doll franchise.

The decision could have far-reaching implications for both companies as well as the toy industry if Mattel wins the large damages award it is seeking as well as an injunction to stop MGA from selling Bratz dolls, the main rival to its Barbie doll franchise.

The federal jury found that Carter Bryant, the creator of the multi-ethnic, big-headed dolls, had created their characters and the name while he was under contract as a Barbie designer at Mattel.

Shares in Mattel, which has blamed competition from the Bratz line for declining sales of Barbie, gained 4.4 percent in after-hours trade following the verdict.

Mattel's chief executive, Robert Eckert, who testified at the trial, said the company had pursued the case "as a matter of principle," and that the verdict was "a victory not only for Mattel but for all those who believe in fair play."

Mattel had alleged that Bryant took the designs to a competitor, MGA, which began producing the Bratz line in 2001 and turned it into a product with more than $1 billion in annual sales and licensing fees.

The verdict was returned after a seven-week trial in United States District Court for the Central District of California in Riverside. The jury is scheduled to return Wednesday to begin the damages phase of the trial.

The jury also found that MGA's chief executive, Isaac Larian, had interfered with Mattel's contractual relationship with Bryant and that he and MGA had converted Mattel property for their own use. Bryant settled with Mattel for undisclosed terms before the trial began.

MGA, which is based in Van Nuys, California, and is privately held, had no immediate comment.