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Judge Stephen Larson, the United States District Court Judge presiding over ongoing intellectual property litigation between Mattel and MGA Entertainment, Inc., granted Mattel's motion for a permanent injunction barring MGA from manufacturing, distributing or selling Bratz fashion dolls, or using the "Bratz" name for any goods or services. He ordered MGA to transfer all trademark rights in the "Bratz" name to Mattel. The Court also held that MGA and its CEO, Isaac Larian, had engaged in unfair competition against Mattel. "We' extremely pleased that the Court granted Mattel's motions for an injunction and ordered MGA to stop selling Bratz products," said Robert A. Eckert, chairman and chief executive officer of Mattel, Inc. "The Court's rulings underscore what Mattel has said all along -- that MGA should not be allowed to profit from its wrongdoing." Judge Larson confirmed yesterday that "Mattel owns all right, title and interest, including any and all copyrights, in and to the Bratz-related works ..." The Court further ruled that "hundreds of the MGA parties' products -- including all the currently available core female fashion dolls Mattel was able to locate in the marketplace -- infringe [Mattel's] rights." As part of the permanent injunction, the Court also ordered MGA to recall all infringing Bratz products from store shelves and to reimburse retailers for the recall. Mattel's request for a permanent injunction came on the heels of a $100 million jury verdict this past summer in Mattel's favor and against MGA, its Hong Kong subsidiary and Larian. At trial, the jury found that Carter Bryant, a Mattel doll designer, had created Bratz doll designs and the Bratz name while he was working at Mattel. The jury further found MGA, MGA Hong Kong and Larian had infringed Mattel's copyrights in Bratz and had acted unlawfully in aiding and abetting Bryant's wrongdoing. The Court noted in its ruling yesterday that the jury had found that "the MGA parties wrongfully acquired the idea for the name 'Bratz'...." As a result, the Court stated, "California law requires, in this instance, that a constructive trust be imposed as to [the Bratz trademarks]. Mattel is the beneficiary of the constructive trust and MGA's trademarks in 'Bratz' ... inure to Mattel's benefit." As a result, the Court ordered that all trademark registrations for 'Bratz' be transferred to Mattel. The Court's Orders will not take full effect until the Court rules on the parties' post-trial motions, which are currently scheduled to be heard in February. |
