MGA Sued for Allegedly Copying Innovation First’s Hexbug Nano

A lawsuit asserting claims for common law misappropriation and unjust enrichment was filed last week by Innovation First against MGA Entertainment, Inc. in the 354th Judicial District Court for Hunt County, Tex. The lawsuit accuses MGA of manufacturing, advertising, promoting, distributing, and/or selling products that were derived from innovative components of the Hexbug Nano micro robotic toy, created by Innovation First.

According to the lawsuit, MGA copied the Hexbug Nano’s motor assembly, components, housing, and legs, and is using them in the company’s Legend of Nara Battling Bug, in competition with Innovation First. The lawsuit seeks to recover any profits MGA has made or will make from the similar toy.

MGA Owns Bratz Brand, Says Appeals Court

The Ninth Circuit Court of Appeals has ruled that MGA Entertainment is the owner of the Bratz brand, not Mattel. In a unanimous decision, Chief Judge Alex Kozinski spoke on behalf of the panel saying that “it is not equitable to transfer this billion dollar brand­­­––the value of which is overwhelmingly the results of MGA’s legitimate efforts” to Mattel. The 24-page opinion stated: “it’s likely that a significant portion––if not all––of the jury verdict and damage award should be vacated.”

MGA founder Isaac Larian said the company will re-launch a new line of Bratz products, as well as release new Moxie Girlz, Moxie Teenz, Bitty Buttons, and BFC, Ink products, this August.

MGA Entertainment Expands Moxie Girlz Line for Fall

MGA Entertainment has announced plans to expand its Moxie Girlz doll brand with the introduction of Moxie Teenz, 14-inch dolls that feature realistic eyes, interchangeable wigs, and 15 points of articulation. The line features four dolls— Melrose, Arizona, Tristen, and Bijou—who do everything from attend college to perform on Broadway. A full line of Moxie Teenz products, including dolls and wig, fashion, and accessory packs, will be available in the fall.

MGA will also partner with Burger King from August 23 to September 12 for a series of branded premiums for girls that will include Moxie Girlz Wrist Bags, Moxie Girlz Light-Up Pendants, and Moxie Girlz Bracelets.

Additionally, MGA will release Moxie Girlz Magic Snow, featuring previously introduced dolls in the line sporting snow outfits, a winter purse and fashion goggles, a sled, and snow powder.

MGA Entertainment Launches Bitty Buttons Dolls

MGA Entertainment is launching Bitty Buttons, a line of eight different 13-inch rag dolls that each come with its own story and personality based on the different fabrics, from old clothes to blankets, that are used to make them. The dolls are designed to promote ideas of individuality, diversity, and second chances.

Each doll is given a significant date as its birthday, ranging from Dictionary Day for Bea Spells-a-Lot to National Cookie Day for Crumbs Sugar Cookie. Each doll also comes with her own specific pet.

MGA Considers IPO

Bloomberg is reporting that MGA Entertainment Inc., will consider selling shares in an initial public offering, according to CEO Isaac Larian. Larian, who controls more than 80 percent of MGA Entertainment, ruled out a share sale this year. The toymaker didn’t proceed with IPO plans in the past because of litigation with rival toymaker Mattel Inc., he said.

Larian unveiled a distribution agreement for MGA’s Moxie Girlz fashion doll with Giochi Preziosi SpA, which CEO Dario Berte said may hold an IPO this fall. Giochi Preziosi will distribute the doll in Italy, France, Greece and Turkey.

TOY BOOK EXCLUSIVE: MGA Launches Specialty Toy Division

MGA Entertainment has announced plans to enter the world of specialty toy products with the launch of its own specialty division, MGA Entertainment Specialty. The company is currently hiring sales representation groups across the U.S. that will service specialty retailers at store level. MGA Entertainment Specialty will offer a vast assortment of unique toys and gifts derived from its portfolio of brands, including Little Tikes, Moxie Girlz, Zapf, Rescue Pets, and more.

[Read more...]