The
company MGA has been involved in a legal battle with Mattel, the
company who created and owns the rights to Barbie. It all revolved
around someone named Carter Bryant, who was employed at Mattel during
the time he created the Bratz dolls. It seems so cut and dry. If this
guy was working at Mattel during the time he created the dolls, then
he must have stole information, ideas, and other things while
creating them, right? Money should go to Mattel. Not so fast. Bryant
claims that it was all his idea, and that he owns the rights to the
“gig eyes, pouty lips” look of the dolls. As quoted from an
article by Tasmin McMahon from Maclean's
(http://www2.macleans.ca/2012/03/14/at-long-last-a-doll-detente/)
“With their Angelina Jolie lips, bedroom eyes and killer wardrobes,
Bratz dolls have shaken up the toy industry, capturing about 35 per
cent of the fashion doll market since their debut in 2001. Barbie’s
share, meanwhile, has fallen from a virtual monopoly to just over
half.” Losing market share is a quick way for a company to go
under. Also, Mattel is very strict about licensing their name, and
stolen intellectual property. Plus, they were probably just pissed
off about the fact that one of their employees “turned” on them,
and instead of going through Mattel to promote his new product, he
branched out on his own in an attempt to make more money.
After
the initial trial, Mattel was awarded money. But MGA had the case
overturned and counter-sued. They won, and were awarded $309 million,
including $137 million in legal fees. Adding in Mattel's legal fees
it paid to fight MGA, the total was nearly $700 million. Naturally,
Mattel was not going to take that kind of loss lying down. A Los
Angeles Daily News article by Muhammed
El-Hasan
(http://www.dailynews.com/business/20130124/bratz-mattel-both-claim-legal-wins)
states, “Mattel won a partial victory Thursday when a federal
appeals court tossed out $172 million in damages the toy giant had
been ordered to pay to the maker of Bratz dolls.
The
9th Circuit U.S. Court of Appeals vacated an April 2011 jury verdict
that favored MGA Entertainment in a counter-suit claiming that El
Segundo-based Mattel Inc. stole trade secrets."
Thursday's
appeals court decision was based on a technicality, that Van
Nuys-based MGA's trade-secrets counter-suit should not have been
tried by the jury because it was not sufficiently relevant to
Mattel's suit.” So both parties have pretty much lost out, because
neither one has really even won anything, right? Well, according to
an article on Tech Dirt by Tim Cushing
(http://www.techdirt.com/articles/20121019/17344420768/its-finally-over-8-years-mattel-vs-bratz-no-ones-getting-paid-lawyers.shtml
) “But
MGA gets the last laugh. The Ninth Circuit left untouched $137
million in attorney fees and costs awarded to MGA for defending
against Mattel's copyright claims.”