Toy Company Awarded $309M in Doll Dispute

Santa Ana - Toy company MGA Entertainment is entitled to more than $309 million in attorneys' fees and damages as a result of its victory over Mattel in the years-long legal struggle over rights to the Bratz dolls, a federal judge in Orange County ruled today.

U.S. District Judge David O. Carter ruled that MGA should get $107.8 million in attorneys' fees and more than $32 million in other costs battling Mattel in court over who owned the rights to the Bratz concept. Carter also ruled that the jury in April made a slight error in calculating compensatory damages, so he whittled it down from $88.5 million to $85 million, and then doubled the award with another $85 million in exemplary damages, for a total of $170 million in damages.

MGA deserved the attorneys' fees because their case "furthers the purposes of the Copyright Act," Carter said in his ruling.

"Mattel asserted a copyright claim that was stunning in scope and unreasonable in the relief it requested," Carter said in the ruling. "The claim imperiled free expression, competition, and the only serious competitor Mattel had faced in the fashion doll market in nearly 50 years. MGA's successful defense ensured that well-resourced plaintiffs cannot bend the law to suit their pecuniary interests."

MGA Chief Executive Officer Isaac Larian told reporters in May during hearings to consider attorneys' fees and damages in the case that his company was seeking $440 million.

"It was a long, long fight, and let's face it, Mattel threw everything at us," said MGA attorney Jennifer Keller.

Keller said she has heard that Mattel spent more than $400 million in legal fees, but she could not confirm the figure.

Mattel issued this statement:

"We are disappointed with the recent rulings on the post-trial motions. Mattel strongly believes that the outcome at the trial level is not supported by the evidence or the law. We will review the court's rulings and evaluate our next steps. Additionally, we remain committed to finding a reasonable resolution to the litigation, and are focused on our primary goal -- to make and sell great toys."

Keller praised Carter's rulings.

"I think it's a very just award," Keller said. "And everybody at MGA certainly feels vindicated. ...We had a great jury, a great judge and, finally, after all this time, justice was done."

Carter also denied Mattel's motion for a new trial today.

After a three-month trial and eight days of deliberations, jurors on April 21 found that MGA did not steal any secrets from Mattel and that Mattel did not own the idea for the Bratz dolls.

Bratz doll designer Carter Bryant worked for MGA after giving Mattel two weeks notice of his intent to quit his job, triggering claims from Mattel that MGA stole its trademark secrets. The jury, though, found against Mattel because of evidence that the toy giant engaged in corporate espionage. MGA also claimed Mattel bullied retailers to not carry the Bratz dolls.

It was a reversal from August 2008 when a federal jury in Riverside ruled in favor of Mattel in its civil suit alleging MGA had committed copyright infringement and conspired to breach Bryant's contract with Mattel. The evidence of the corporate espionage surfaced just before this year's trial, MGA's attorneys said.

The $100 million award to Mattel was overturned by the U.S. 9th Circuit Court of Appeals last year, leading to the Santa Ana retrial.