Barbie vs Bratz: Take 2?
Mattel and MGA could be set for another trial as a federal appeals court has ruled Mattel was wrongly awarded ownership of the Bratz brand.
US news agency Reuters reported yesterday that the 9th U.S. Circuit Court of Appeals in San Francisco has thrown out the injunction barring MGA selling the dolls, and said original trial judge Stephen Larson made a mistake in awarding Mattel ownership of the Bratz doll franchise. The injunction preventing MGA selling the dolls was suspended last December, pending MGA's appeal.
Chief Judge Alex Kozinski, representing a unanimous three judge panel said the case may need a new trial. Mattel was awraded ownership of the dolls and $100 million in 2008.
Kozinski commented "It is not equitable to transfer this billion dollar brand -- the value of which is overwhelmingly the result of MGA's legitimate efforts -- because it may have started with two misappropriated names," Kozinski wrote, referring to the 'Bratz' and 'Jade' names.
In his judgement Kozinski went on to say: "It's likely that a significant portion - if not all - of the jury verdict and damage award should be vacated, and the entire case will probably need to be retried," because the jury instructions contained several errors identified by the appeals court. "The district court didn't properly analyse whether Mattel owns Bryant's ideas under his contract, so it's premature to try to determine whether MGA's acquisition of them was wrongful."
MGA claimed the ruling as a "sweeping victory", with founder Isaac Larian commenting: "I am grateful and thankful to all the employees of MGA and their families who stood by me and my family during this ordeal, as well as to our extraordinary team of lawyers who fought so hard to restore belief in the American justice system and the priceless value of the American dream. To that I must also add my gratitude to the retailers and all of our suppliers. I thank you all.”
Mattel commented: "The Ninth Circuit Court of Appeals has decided that some aspects of the first phase of Mattel's case against MGA will need to be the subject of further proceedings in the trial court, including a retrial on certain issues previously resolved in Mattel's favor. We look forward to a full trial on all of Mattel’s claims against MGA. We believe that such a trial will present a comprehensive and even more compelling case for Mattel than was possible with a divided trial. We have great confidence in the judicial system and the ability of a jury to right the wrongs that Mattel has suffered."
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