Mattel awarded $100M US in damages in Bratz doll case
Last Updated: Tuesday, August 26, 2008 | 6:18 PM ET
The Associated Press
A saucy doll from the popular Bratz series from MGA Entertainment photographed at the 2006 Canadian Toy and Hobby Fair in Toronto. (Robin Rowland/CBC)A jury in California awarded Mattel Inc. $100 million US in damages on Tuesday in a federal copyright lawsuit that pitted the house of Barbie against MGA Entertainment Inc., the maker of the saucy Bratz dolls.
Damages were awarded for contract interference and copyright infringement. No punitive damages were ordered against MGA.
The same jury that decided the damages phase concluded last month that Bratz designer Carter Bryant came up with the Bratz concept while working at Mattel.
In his closing arguments, Mattel attorney John Quinn said MGA owed Mattel at least $1 billion in Bratz profits and interest while MGA chief executive Isaac Larian aided in the breach of contract and owed nearly $800 million for his complicity.
MGA attorneys countered that the jury should award Mattel as little as $30 million because the company had built the doll line's value with smart additions, branding and packaging.
MGA hailed Tuesday's decision as vindication in the long-running case.
The amount of damages turned on the question of whether jurors believed MGA should only be held responsible for profits derived from the first four Bratz dolls — which came from Bryant's drawings — or from all the subsequent Bratz dolls and related products.
The four original dolls made just $4 million in profit their first year and comprised only 2.5 per cent of MGA's entire Bratz revenue, said Raoul Kennedy, one of MGA's attorneys.
In the past seven years, MGA has built the popular brand to include more than 40 characters and expanded it with spinoffs such as Bratz Babyz, Bratz Petz, Bratz Boyz and items like helmets, backpacks and bedsheets.
After their introduction in 2001, the Bratz line exploded in popularity among "tweens" — girls aged seven to 12. The highly stylized fashion dolls have oversized feet, heads and hands, curling lashes and huge, almond-shaped eyes daubed with exotic-colored eyeshadow.
Sales of Barbie — a near right-of-passage in American girlhood — have slid since Bratz's Yasmin, Cloe, Jade and Sasha came on the scene. Domestic sales of Barbie were down 15 per cent in 2007 and 12 per cent in the first quarter of 2008, while international sales increased six per cent in 2008 as opposed to 12 per cent the previous year.
Bryant, the Bratz designer, settled with Mattel on the eve of trial. The terms of that settlement have not been made public.
Corrections and Clarifications
- Mattel Inc. was awarded $100 million US in damages in its copyright lawsuit against MGA Entertainment Inc., not $40 million US as initially reported. Aug. 26, 2008|7:49 p.m. ET
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