NEW YORK -- Bratz dolls will remain in legal limbo for a while longer after a court on Thursday overturned a ruling shifting ownership of the pouty-lipped posers from MGA Entertainment to Mattel in a copyright case that has lasted for years.
The 9th U.S. Circuit Court of Appeals in San Francisco ruled that a district court was wrong to give ownership of the full Bratz trademark portfolio to Mattel Inc. in a 2008 decision that has been on hold since December. Judge Alex Kozinski said the entire case might have to be retried in district court.
"America thrives on competition; Barbie, the all-American girl, will too," he wrote in Thursday's ruling.
The legal wrangling began in 2006, when Mattel alleged Bratz designer Carter Bryant developed the concept for Bratz while still working for Mattel, the largest U.S. toy maker. Mattel sued MGA for copyright infringement and breach of contract.
In 2008, a federal jury awarded Mattel $100 million and the court ordered MGA to recall Bratz toys that were on the market and turn over the brand to Mattel.
In April 2009, U.S. District Court Judge Stephen Larson upheld the $100 million jury verdict, but the appellate court stayed the order in December until it could rule on MGA's appeal.
Kozinski said the district court was wrong to characterize Bryant's employment agreement as unambiguously covering works created outside the scope of his employment at Mattel. And he said it was wrong to transfer the entire Bratz trademark portfolio to Mattel because MGA's development efforts significantly increased its value.
The Sun News Terms & Conditions and Commenting Policies can be reviewed here.