- MGA Triumphs over Mattel
MGA Entertainment won a huge appellate victory over Mattel Thursday, reclaiming the rights to the popular Bratz doll line.
Ninth U.S. Circuit Court of Appeals Judge Alex Kozinski overturned a lower court decision that essentially transferred rights in the Bratz line of dolls to Mattel, finding that “America thrives on competition; Barbie, the all-American girl, will too.”
Thomas J. Nolan of Skadden Arps, who represented MGA, said the decision is an important one for the creative community, as well as copyright law and contract interpretation. He also credited Isaac Larian, the CEO of MGA, for standing behind his company’s claim to the Bratz dolls.
“I’m doing very well today,” said Nolan, who tried the underlying case against John Quinn of Quinn Emanuel, who represented Mattel. “We believe the 9th Circuit got it right in finding that MGA took a risk on and stood behind the Bratz dolls, and that Mattel has no claim to those properties.”
Kozinski, in his ruling, agreed with that assessment, saying, “Even assuming that MGA took some ideas wrongfully, it added tremendous value by turning the ideas into products and, eventually, a popular and highly profitable brand. The value added by MGA’s hard work and creativity dwarfs the value of the original ideas [Carter Bryant, who conceived the dolls while working at Mattel] brought with him, even recognizing the significance of those ideas.”
Bratz are the wildly popular dolls that morph the 39-18-34 measurements of lovely Barbie, the doyenne of 1950s America, into a decidedly new millennium contraption with a bobblehead and oversized lips and facial features, but spindly anatomy.
They were the brainchild of Bryant, who worked at Mattel designing fashion and hair styles for high-end Barbies. In August 2000, he pitched his idea for the Bratz line to two MGA employees, with a follow-up meeting with Larian. Shortly after he met with Larian, he signed a consulting agreement with MGA and gave notice at Mattel.
When Mattel found out that Bryant had taken his idea to MGA, it sued, claiming ownership of the Bratz line.
While the lower court jury in Riverside found against Bryant and MGA, it awarded Mattel just $10 million of the $1 billion in copyright damages it sought.
However, Judge Stephen Larson also granted Mattel a wide-ranging constructive trust on the Bratz properties that essentially transferred the Bratz trademark portfolio to Mattel. He also enjoined MGA from producing or marketing virtually every Bratz female fashion doll.
In a potentially important elucidation of copyright law, Kozinski found that any copyright claim Mattel had to the sketches and a sculpt Bryant rendered while in its employ did not extend to the fundamental idea of a bratty doll.
“Otherwise, the first person to express any idea would have a monopoly over it. Degas can’t prohibit other artists from painting ballerinas, and Charlaine Harris can’t stop Stephanie Meyer from publishing Twilight just because Sookie came first. Similarly, MGA was free to look at Bryant’s sketches and say, “Good idea! We want to create bratty dolls too!”
Mattel has allegedly spent more than $200 million in legal fees pursuing its claims to the Bratz doll line, reopening the long running question of the company’s litigation tactics. To some, the case was reminiscent of Mattel v. Walking Mountain Productions, in which the global toy company sought to enjoin a Utah artist’s renderings of Barbie with kitchen appliances in 78 photos titled “Food Chain Barbie.” Mattel was sanctioned $1.6 million in that case.
Kozinski remanded the case to the trial court. Judge David Carter will oversee the next stage of the litigation.
Kozinski was joined in his decision by Judges Stephen Trott and Kim McLane Wardlaw.
Joshua Rosenkranz of Orrick also represented MGA on appeal. Daniel Collins of Munger Tolles joined Quinn in representing Mattel.
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| 10:22 AM Jul 23, 2010 | Email the Daily Dragon | Email this Article | Post Comments |
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