Federal appeals court rules MGA can keep selling Bratz dolls, reversing lower court

Appeals court: MGA can keep Bratz brand of dolls

SAN FRANCISCO — A federal appeals court has overturned a lower court ruling that gave Mattel Inc. ownership rights to the popular Bratz doll brand, which competed with the toy company’s iconic Barbie dolls.

The 9th U.S. Circuit Court of Appeals on Thursday reversed a lower court’s mandate that MGA Entertainment Inc. stop selling Bratz products.

In 2008, Mattel won a lawsuit claiming MGA had infringed its copyright and breached a contract because the Bratz dolls’ designer was still under contract to Mattel when he developed the Bratz concept for MGA.

In April 2009, a federal judge upheld the $100 million jury verdict that gave Mattel ownership of the Bratz brand.

But the appeals court suspended that order in December and reversed it Thursday.