Following a four-year legal-dispute MGA Entertainment has been ordered to remove its entire range of Bratz dolls from stores by early next year. The jury ruled that the creator of Bratz had developed the idea for the dolls while he was still working for Mattel.
The ruling gives Mattel rights to the Bratz franchise, which is worth more than £1bn in annual sales. Mattel has been awarded $10m for copyright infringement and $90m for breach of contract.
Dave Croston, patent attorney at Withers & Rogers LLP, said: ‘Mattel has been fortunate that the jury's ruling found that Bratz designer, Carter Bryant, developed the concept for the dolls while working for Mattel. The company's failure to identify and hold onto its knowledge at an early stage has resulted in costly court proceedings and a significant loss of market share for Barbie.'
MGA Entertainment will be required to destroy all moulds and plates used to make the dolls and will have to compensate retailers for the costs of removing the dolls.
The Bratz line was launched in 2001, and impacted heavily on Barbie sales. Since the ruling was announced, Mattel has seen its shares rise by more than 7%.
This, however, may not spell the end of the Bratz brand.
Croston said: ‘Bratz has grown into a popular and profitable brand and awareness of the Bratz brand amongst its young market should help MGA Entertainment reinvent itself and ride out the storm.'
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