Federal Court Stays Bratz Ruling

A federal appeals court in Pasadena has suspended a ruling that ordered MGA Entertainment to stop selling Bratz products this year, recall remaining toys, and give ownership of the brand to Mattel. The U.S. 9th Circuit appellate panel stayed the order until it can rule on MGA’s appeal to the $100 million lawsuit it lost to Mattel last year.

The suit by Mattel claimed copyright infringement and breach of contract against MGA, and a U.S. court ruled in favor, agreeing that doll’s designer had been working for Mattel when he designed the doll, which gave Mattel the design rights. MGA was ordered to transfer its ownership of the Bratz line to Mattel by 2010. According to the BBC, Bratz dolls are estimated to make MGA a profit of $500m a year.

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