May 22, 2008 7:27 PM

Barbie and Bratz Head to Trial

Posted by Drew Combs

An upcoming trial next week in Riverside, California, pits Mattel Inc., the world's largest toy company, against the makers of the wildly popular Bratz doll line. But the matter is anything but child's play.

Mattel is seeking hundreds of millions of dollars in damages in the copyright infringement suit; opening arguments are scheduled for May 27.

The case, filed in 2004, alleges that sketches by toy designer Carter Bryant were developed while Bryant was under contract with Mattel. The sketches eventually made their way to MGA Entertainment and developed by MGA into the Bratz doll line. In court papers, Mattel asserts that its employment agreement with Bryant grants it ownership of any drawings made while Bryant was employed by Mattel.

The case had been billed as a clash of three West Coast legal titans--John Quinn, of Quinn Emanuel, representing Mattel; Tom Nolan, at Skadden, Arps, Slate, Meagher & Flom, representing MGA Entertainment Inc., the makers of Bratz; and John Keker, of Keker & Van Nest, representing the former Mattel toy designer at the center of the dispute. But on Monday, Mattel and Bryant reached a settlement, leaving Quinn and Nolan to battle it out.

Details of the settlement negotiated by Pierre-Richard Prosper, a former ambassador-at-large for war crimes issues in the Bush administration, have not been released. Prosper was brought into the case last fall by U.S. District Court Judge Stephen Larson to oversee settlement negotiations between all three parties.

"The judge and the parties thought my international experience mediating and negotiating armed conflicts would translate here," says Prosper, counsel in the Los Angeles office of Arent Fox.

Bryant had worked at Mattel on two separate stints, then left the toy company for good in October 2000 and signed on with MGA. In June, 2001, MGA launched Bratz, a line of dolls similar to Mattel’s Barbie line, but with a more urban look: oversized heads, pouty lips, almond-shaped eyes, and hip-hop clothes.

In recent years the dolls have better connected with young girls, dethroning Barbie as the top selling fashion doll in several countries. Dolls sales have resulted in boatloads of revenues and profits for MGA Entertainment, which is privately held. More than 150 million dolls have been sold worldwide, generating $2.5 billion in sales.

Bryant has said he was not employed by Mattel when he developed the Bratz idea. MGA has asserted that it designed and brought the Bratz doll line into the market. By filing the lawsuit, MGA says, Mattel is seeking to replace revenue from its lost market share.

According to Prosper, even as the two sides prepare for trial attempts to settle the matter continue. "While they’re in trial I will stay engaged. It is a long trial with different phases," he says.  "As I said in court on Tuesday, I believe there is a settlement out there."

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