A federal judge delivered a potentially fatal blow to the popular Bratz dolls and their manufacturer, MGA Entertainment Inc., ruling late Wednesday that archrival Mattel Inc. is the legal owner of the edgy toy line and has the right to recall all unsold Bratz.
The court order, which represents a major victory for toy giant Mattel, says MGA may no longer manufacture, sell, advertise or license its core lineup of Bratz dolls or any other product with the Bratz name.
Preteen girls, who took to the pouty-lipped Bratz almost from the time they debuted in 2001, will still be able to put them on their gift lists for this holiday season, however. The order by Judge Stephen Larson will not take effect until the warring toy companies meet in court Feb. 11, at the earliest.
Mattel Chief Executive Robert Eckert issued a statement Wednesday saying the company was pleased that the court "ordered MGA to stop selling Bratz products." The brief statement also said the ruling "underscores what Mattel has said all along -- that MGA should not be allowed to profit from its wrongdoing."
Issac Larian, chief executive and majority owner of MGA, said the company would appeal.
"I was just shocked" by the decision, Larian said. "It was unbelievable, but we will come out on top in the end."
Asked whether the decision, if upheld, could mark the end of his company, Larian said, "I don't want to even think about that right now."
The decision covered nearly all MGA products issued under the Bratz name. But MGA would have to use another moniker if it were to keep making them.
Van Nuys-based MGA employs more than 1,500 people. Other than Bratz, the company's products include a line of dolls called Rescue Pets.
If the order puts MGA out of business, Mattel would be rid of its primary fashion doll rival. The Bratz were seen as grabbing more and more sales from Mattel's signature Barbie line.
The court order stemmed from a July decision by a jury that found the Bratz creator was working at Mattel under an exclusive contract when he came up with the idea for the doll line.
The federal jury in Larson's Riverside courtroom awarded Mattel as much as $100 million for copyright infringement and breach of contract. It also granted Mattel the rights to key early drawings and a mock-up that designer Carter Bryant produced at Mattel before he went over to MGA.
The family-owned company based its toy empire on Bratz. Larson said in the decision that he took this into consideration.
