Trial wraps up in spat over Bratz copyright

[April 08, 2011]  SANTA ANA, Calif. (AP) -- The question of who owns the popular, multi-billion dollar Bratz doll line will soon be in the hands of a jury after a years-long, exhaustive legal fight that has shaken the sandbox for both Barbie-maker Mattel and its upstart rival MGA Entertainment.

Closing arguments in the second round of the copyright infringement case begin Friday, more than six years after the dispute first erupted about who owns the rights to the hip hop-inspired, pouty-lipped Bratz dolls.

The dolls have been a goldmine for the previously obscure MGA, but Mattel believes that Los Angeles-based company conspired with Bratz designer Carter Bryant to steal the idea while Bryant still worked for Mattel.

A jury awarded Mattel $100 million in 2008 and found that Bryant had developed the dolls' concept while with Mattel, but the verdict was overturned and the case sent back for retrial.

MGA denies the allegations and has countersued Mattel, alleging the El Segundo-based company engaged in unfair business practices and sent gumshoes to spy on MGA at toy fairs after realizing Bratz was stealing sales from its flagship doll, Barbie. The toy giant only sued when it realized it could no longer compete, MGA attorneys allege.

Both toymakers have a lot on the line in the three-month trial.

MGA's CEO Isaac Larian said his company has spent $150 million on legal fees and been forced to lay off 300 employees as a result of the litigation, while a Mattel attorney said in opening statements that the Bratz brand has cut Barbie profits by $393 million.

Since Bratz dolls first hit shelves in 2001, MGA has sold an estimated $3.3 billion in related products, with $292 million in profits, Mattel attorney John Quinn said.

Mattel first sued Bryant in 2004. Mattel settled with Bryant on the eve of the first trial for $2 million, but continued to pursue its case against MGA.

The first trial was limited to copyright issues, but this time jurors are being asked to determine the scope of the invention agreement signed by Bryant at Mattel before he went to work for MGA and to decide on MGA's counterclaims that Mattel engaged in unfair business practices. In those counter-allegations, MGA accuses Mattel of using fake IDs to spy on MGA at trade shows and threatening retailers and distributors who did business with MGA.

The trial has at times turned nasty and included plenty of drama.

In February, Mattel asked U.S. District Judge David O. Carter for a mistrial after Larian took the stand and told jurors that Mattel caused the stress that led to his father's death, destroyed his family and caused Bryant to have a stroke.

Bryant, who now lives in Missouri, had a medical crisis at the airport while returning home after his testimony. He was taken to the hospital by ambulance but recovered.

It wasn't clear what caused the collapse and Mattel said Larian's statements were untrue.

[Associated Press; By GILLIAN FLACCUS]

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