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

Appeals court: MGA can keep selling Bratz dolls

SAN FRANCISCO — Toy maker MGA Entertainment Inc. on Thursday won back ownership rights to the popular Bratz doll brand, overturning Mattel Inc.’s claim that Bratz were a copy of its iconic Barbie dolls.

The 9th U.S. Circuit Court of Appeals reversed a court order that forced MGA to stop selling Bratz products last year.

“America thrives on competition; Barbie, the all-American girl, will too,” Judge Alex Kozinski wrote in Thursday’s ruling.

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

In April 2009, U.S. District Court Judge Stephen Larson upheld the $100 million jury verdict that gave Mattel ownership of the Bratz brand.

But the appeals court suspended that order in December pending its ruling on MGA’s appeal.

MGA began selling Bratz dolls in 2001 after hiring Carter Bryant, who was working in Mattel’s “Barbie Collectibles” department when he pitched the idea for a new line of dolls to MGA CEO Isaac Larian.

Bratz, which MGA called “The Girls With a Passion for Fashion,” quickly gained popularity with young girls and competed directly with Barbie, which had ruled the fashion-doll market for decades.