ONTD

slut got owned



RIVERSIDE, Calif. (Reuters) — Mattel (MAT) won a court case against MGA Entertainment on Thursday over which toymaker owns the $1 billion-plus Bratz fashion doll franchise.

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

The decision put Mattel in commanding position going into the damages phase of the trial, which begins July 23.

Other than the four drawings that Bryant testified that he made in a notebook while on an eight-month hiatus from Mattel in 1998, privately held MGA lost the rights to all drawings and "sculpts" of the Bratz.

While the verdict is a blow for MGA, it can say in the damages phase that Mattel has no rights to the dolls themselves because they are different from the drawings and were made by MGA designers.

The jury also found that MGA Chief Executive Isaac Larian had interfered with Mattel's contractual relationship with Bryant and that both he and his company were liable for "conversion," the term used for industrial theft.

Mattel had no immediate comment.

Larian also had made no comment, but shook his head after the verdict form had been read in its entirety.

another article, no direct page source but it has authors in the article

Mattel prevails in Bratz copyright trial
Thu Jul 17, 2008 7:44pm EDT

By Gina Keating

RIVERSIDE, California (Reuters) - Mattel Inc (MAT.N: Quote, Profile, Research, Stock Buzz) won a nearly complete victory on Thursday in its federal copyright infringement case against rival MGA Entertainment Inc over which toymaker owns the original drawings for the $1 billion-plus Bratz fashion doll franchise.

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

Mattel shares gained 4.4 percent in after-hours trade following the verdict.

Mattel Chairman and Chief Executive Bob Eckert, who testified at the trial, said it 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."

"While the case has been very complicated, the underlying principle has been a simple one: you shouldn't take what isn't yours," Eckert said in a statement.

The decision put Mattel in commanding position going into the damages phase of the trial, in which the jury will determine if the Bratz doll infringes on the drawings Mattel now owns and whether MGA owes Mattel damages as a result. That phase begins July 23.

Other than the four drawings which Bryant testified that he made in a notebook while on an eight-month hiatus from Mattel in 1998, privately held MGA lost the rights to all drawings and "sculpts" of the Bratz.

"DISAPPOINTED"

While the verdict is a blow for MGA, it can claim in the damages phase that Mattel has no rights to the dolls themselves because they are different from the drawings and were made by MGA designers.

"The real issues will be fleshed out in (the damages phase)," MGA attorney Thomas Nolan said outside the courtroom. "We have always taken the strong position that Bratz dolls do not infringe on Carter Bryant's drawings ... that substantial changes were made to the dolls to make them marketable."

The jury also found that MGA Chief Executive Isaac Larian had interfered with Mattel's contractual relationship with Bryant and that both he and his company were liable for "conversion," the term used for industrial theft.

Larian, who attended court every day of the seven-week trial, said outside court that he was confident his company "will prevail in the end," and added that he was considering appealing the jury's verdict.

"Frankly, I was disappointed because I think Mattel's lawyers did everything they could to confuse this jury," Larian said.

Mattel's attorney John Quinn said on a conference call with reporters that the damages for copyright infringement would be based on MGA's profits from Bratz and any related products, which some estimates pegged at $500 million a year.

"We assume the evidence is going to be that the damages here are very, very substantial," Quinn said. "It's no secret that Bratz has been a very successful product."

Quinn would not comment on whether MGA and Mattel are engaged in settlement talks.

The verdict could be the start of a reversal of fortune for MGA, which grew Bratz from the drawings to a multibillion-dollar franchise in seven years as Mattel watched market share for its venerable Barbie line melt away.

Barbie's sales troubles have extended into the first quarter of 2008 -- domestic sales fell 12 percent, while worldwide sales were flat with the earlier year.

The pouty-lipped Bratz, on the other hand, have been such a hit that MGA is launching a new Bratz line in August, which Larian expected to rake in retail sales of up to $200 million by the end of the year.

"The value of the (Bratz) brand and the value of Mattel's ownership stake have to be assessed," said Chris Byrne, an independent toy industry analyst. "I think it is going to have an effect on MGA, moving forward, and on what they do."

(With additional reporting by Aarthi Sivaraman in New York)

(Writing by Mary Milliken; Editing by Andre Grenon, Phil Berlowitz)


what the makers of bratz say

For Immediate Release

MGA Responds to Jury Verdict in First Phase of Trial Involving Bratz�

Riverside, CA � July 17, 2008 � For the past six weeks, MGA has battled a toy

goliath in Mattel in a trial regarding when the Bratz� idea and drawings were

created by Carter Bryant, a former Mattel employee. As Tom Nolan, MGA's

lawyer told the jury during his closing argument, "Mattel wants to take ideas and

drawings that they did not conceive of, that they did not draw and that they did

not make."

Today the jury returned a verdict in what is only Phase 1(A) of the trial. There

are significant issues that remain to be tried in Phase 1(B) of the trial, including

whether Mattel owns any copyrights in Bryant's drawings. If so, the jury will

decide whether MGA's Bratz� dolls are infringed by any Mattel copyrights, and

what the damages are (if any).

"Most importantly, the verdict issued today does NOT entitle Mattel to any rights

whatsoever of Bratz," said Nolan, lead trial lawyer for MGA. "The verdict merely

determined that certain drawings by Carter Bryant were created while he worked

at Mattel."

As the scope of Phase 1(A) was narrowly limited, MGA will now be given an

opportunity in Phase 1(B) to present to the same jury all of its defenses to

Mattel's allegations. The issue in Phase 1(B) is to determine whether MGA's

Bratz� dolls infringe any copyrights Mattel may own of Carter Bryant's drawings.

"We at MGA remain confident that we will ultimately be successful at the

conclusion of the 1(B) trial and/or before the Ninth Circuit Court of Appeal. This

is because it is undisputed that MGA � not Carter Bryant � independently created

the Bratz dolls," said Isaac Larian, CEO of MGA Entertainment. "Carter Bryant

did not have anything to do with the many Bratz-related products we created,

such as Bratz Babyz, Lil' Bratz and Bratz Kidz to name a few," Larian added.

MGA points out that Mattel is only suing MGA regarding the "first generation" of

Bratz� dolls that were issued in 2001. "Under no circumstance will Mattel be

able to assert ownership of the Bratz franchise � which will always belong to

MGA," Larian said. "Our customers, retailers, vendors, and suppliers can take

comfort in knowing that there will be no disruption in MGA's manufacturing and

sales of Bratz dolls or any other products," Larian said.

MGA contends that Mattel is trying to hijack what the family-owned company

created from scratch over the past seven years of hard work. They believe that

Mattel waited from 2001, when the Bratz� line of dolls was introduced into the

marketplace, until July 2007 to come after them in court � years after it admitted

in internal marketing documents that it was "out thought and out executed" by

MGA. MGA further contends that Mattel has used litigation as a "business

strategy" against MGA. MGA believes Mattel, having failed to compete in the

marketplace, has resorted to litigation as a business strategy � with the intention

to "litigate MGA to death" as one former Mattel executive testified.

Nolan further stated: "Please wait for `part 1b of this Phase of the trial to be

completed in a few weeks-- we are confident that the jury or court will vindicate

MGA and Isaac Larian of all of Mattel's claims, when they hear the `rest of the

story'," .

MGA has received a great amount of support throughout the duration of this trial.

"I am thankful to all of MGA's employees, vendors, and customers for their

incredible daily support while we fight Mattel for what's rightfully ours," said

Larian.

Media Contact:

David Silver

213-488-6161

info@...


i think we all know who wins...
JEM!




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