The end of the road for Bratz? Options

[DeltaSeeker]

I know there are a couple members here that collect Bratz dolls, so I thought this article might be of interest.

For those not in the know, there's been a legal battle between Mattel and MGA over copyright violation and breach of contract over the Bratz dolls, originally developed by Carter Bryant while working at Mattel. Judgement has been made, and if left to stand, means that MGA has to stop making all Bratz products after the end of the year.

http://money.cnn.com/2008/12/04/news/compa...sion=2008120406

Barbie beats back Bratz
Federal judge bars MGA from making, selling Bratz dolls; Barbie sales down 15%.

LOS ANGELES (AP) -- The rowdy Bratz dolls have been evicted. Barbie has regained control of the dollhouse.

Toy giant Mattel Inc., after a four-year legal dispute with MGA Entertainment Inc., touted its win in the case Wednesday after a federal judge banned MGA from making and selling its pouty-lipped and hugely popular Bratz dolls.

"It's a pretty sweeping victory," Mattel attorney Michael Zeller said. "They have no right to use Bratz for any goods or services at all."

U.S. District Judge Stephen Larson rocked the toy industry with his order that MGA must immediately stop manufacturing Bratz. He allowed MGA to wait until the holiday season ends to remove the toys from store shelves.

The decision was a stunning defeat for MGA, which exploded onto the tween scene in 2001 with the edgy dolls and made hundreds of millions in profits, giving Mattel's more classic doll-diva Barbie a run for her money.

MGA planned to immediately appeal the judge's injunction, Chief Executive Isaac Larian said in a written statement late Wednesday.

Larian said the company also intended to ask that the order be stayed until the appeals process is over, so that "we can maintain the over 1,500 people that MGA employs, and continue to give our consumers a product they desire."

The ruling, issued in federal court in Riverside, followed a jury's finding that Bratz designer Carter Bryant developed the concept for the dolls while working for Mattel.

The same jury later awarded Mattel $10 million for copyright infringement and $90 million for breach of contract after a lengthy trial stemming from Mattel's 2004 lawsuit ended in August.

Mattel has fought to neutralize the Bratz line for years. The dolls -- with their huge lips, pug noses, almond-shaped eyes and coquettish figures -- were an instant hit with young girls. MGA had taken Bryant's original four dolls and spun out a line of more than 40 characters, complete with accessories and related toys such as Bratz Boyz, Bratz Petz and Baby Bratz.

El Segundo-based Mattel has seen sales of Barbie -- once a rite of passage for American girls -- slide since the doe-eyed Bratz dolls first came on the scene. Domestic sales of Barbie were down 15% in 2007.

Both sides had a lot riding on the judge's decision and had worried about the impact of any ruling during the holiday shopping season.

The judge's injunction named all 40 dolls in the Bratz line, including the four originals -- Yasmine, Chloe, Sasha and Jade. Larson also ordered MGA to reimburse its vendors and distributors for the cost of the dolls and all shipping charges for sending them back.

During trial, Mattel attorneys said MGA made nearly $778 million on the Bratz line since it was introduced seven years ago, and company Chief Executive Isaac Larian made $696 million through June -- but MGA insisted the profits were much less.

The post-trial dispute that prompted Wednesday's ruling centered on whether the jury found that only the first generation of four Bratz dolls infringed on Mattel's (MAT, Fortune 500) copyright or whether all the dolls in the line are in violation.

The jury verdict form only asked panelists to find whether there was infringement and assign a dollar reward, but did not ask them to specify which dolls among the dozens MGA made violated the law.

Los Angeles-based MGA, which no longer makes the first-generation dolls, argued that the later toys in the Bratz line don't violate the copyright and it could continue to sell them.

MGA attorney Raoul Kennedy argued that Larson had the discretion to determine which dolls violated Mattel's copyright. Mattel's attorneys disagreed, saying the court does not have the authority to interpret the jury's findings after the fact.

[MintBerryCrunch]

Thank god. I don't want my daughter to grow up thinking her nose is a facial deformity.

[Bass X0]

The end of the road for Bratz?

Oh well... never DID want Bratz to live forever!

I wish I could share their elation, believe that Bratz is truly over. In my heart of hearts, I know... IT NEVER ENDS!

This post has been edited by Bass X0: Dec 4 2008, 09:40 AM

[Galenraff]

With their vast, predatory eyes? (Did...did I use it right? That's the first time since finding out what that one was I've tried to make a joke about it. I hope it goes okay!)

I dunno about this. I mean, on the one hand, if they were developed by a Mattel guy at Mattel and on Mattel's clock, then that work belongs to Mattel. Computer programmers face the same sorts of issues. They know that if they have any side projects they might ever want to sell, unless specifically allowed in an employment contract, you only do that stuff while at home, on your own equipment, and do not use anything that could be construed as having been derivative of work you do for your employer.

But on the other hand, this is a pretty big, profitable market, this will affect a lot of licensees, promotions, and all that stuff. They couldn't have taken care of this in 2001? They waited until there was a big market and until after Barbie sales could be demonstrated to flag? It's also just another example of suing someone out of the way. Clearly little girls aren't as interested in Barbie anymore, and you're not going to force them to be, especially not like this. If children's tastes are different now, you have to adapt to them to keep selling strong. That's why Transformers changes so much every few years is to keep up wiith what's popular with little boys at that time. As the TRU reissue line showed (even on super-clearance after the price differences were largely washed away), kids today don't want 1984 TFs. They want today's TFs. You have to change and adapt, or your business model is dead anyway. So they were able to push this off, but what about the next thing where they don't have a legal claim? What if they lose on appeal? You can only get away with litigation for so long if your business model doesn't work anymore.

Culturally, yeah, these things are probably not so good, but I'd argue they're no worse than Barbie for creating/reinforcing image problems for little girls, just different. And either way, just because I don't like it doesn't mean I'm gonna crusade to get them off store shelves. They've a right to make them and others have a right to buy them. If it's not this, it's going to be something else. When Paris Hilton starts a doll line, we'll see how wholesome those will be, but I'm sure they'll be ridiculously popular.

[Diddy_Mao]

Personally the Bratz toys always creeped me out beyond comprehension so I'm not particularly sorry to see them go.

The question I have is whether or not Mattel has plans on continuing the line themselves or if they'd just rather keep Barbie as the big dog in the yard.

Because if this is the last generation of these toys I'm torn.

On one hand I like money, on the other hand I frequently curse toy scalpers when I can't find the figures I want anywhere but ebay for 3x retail.

[Anonymous X]

Culturally, yeah, these things are probably not so good, but I'd argue they're no worse than Barbie for creating/reinforcing image problems for little girls, just different.

I'll agree on that. But I'm still uneasy about Bratz. I have an eight year old sister who used to collect Bratz (and pretty much only due to peer pressure). I'm no prude but I've always been disgusted by how, well, inappropriate and slutty the toy designs are and what symbolic messages they give out. I don't think Bratz are novel or unique in that regard as I find a lot of toys aimed at girls very negative, but I'm still disturbed by how far Bratz has pushed the boundaries of what is considered decent for small children.

[Robogeek1973]

My 3 daughters LOVE Bratz and have absolutely no interest in Barbie, they'll be sad to see these go.

[Solarstorm]

With their vast, predatory eyes? (Did...did I use it right? That's the first time since finding out what that one was I've tried to make a joke about it. I hope it goes okay!)

I dunno about this. I mean, on the one hand, if they were developed by a Mattel guy at Mattel and on Mattel's clock, then that work belongs to Mattel. Computer programmers face the same sorts of issues. They know that if they have any side projects they might ever want to sell, unless specifically allowed in an employment contract, you only do that stuff while at home, on your own equipment, and do not use anything that could be construed as having been derivative of work you do for your employer.

Galenraff's right. My dad and a partner engineered a new type of machine for the factory he works at (he's a mechanic and engineer). It combined the typical poly/plastic bag printer with a converter, allowing for one person to effectively do the job of two. He also helped the Belgian company, AGFA in adapting their Dotrix digital printers to work on plastic (which his factory owns the exclusive rights to for 3 years). He's in the patent process for that one (along with his plant supervisor who gets to tag along and get his name on it too).

Both cases were designs or changes that could be profitable (mostly the 1st one, his design entirely--the second was more of a modification than a process). In neither case can he make 1 cent off of the designs. They were done on company time. Regardless of the fact that they were special jobs and not his usual duties.

His partner pushed the big-wigs about getting ownership of the plans and ended the bonuses they would receive when they did stuff like this. All of the bonuses for stuff like this added a couple thousand (once 10,000) a year to their normal earnings. Shortly after, his partner was laid off.

I've encouraged my dad to start a side business, like you mentioned with comp. programmers. The problem is that these machines cost 150-300 thousand to build. Than alone all of the tools and materials the design process would use (in development machines use more parts than a finished design, as there is some trial and error). Not to mention renting out a sufficient space for work.

[Wheelimus]

I am beyond shocked the two companies couldn't come up with a fair profit sharing plan.

I guess they forgot that you aren't supposed to kill the golden goose.

[Robogeek1973]

I see it as Mattel being pissed that Barbie isn't #1 anymore so they're going about ending the problem in a pure American way, lawsuit.

[Wheelimus]

Right, but that won't work. It isn't the Bratz brand-name that girls are drawn to, it's the fact that it isn't Barbie.

Kids just aren't as interested in the over-glossed princess crap that Barbie is still shoving down girls throats after all these years. Girls get over wanting to be princesses very young these days, and instead turn to wanting to be whore'd up wannabe celebrities.

Nothing will change for Mattel, Bratz will come off the market and something else will take it's place. The first company to reach saturation with little dolls all slutted up will have the market share. If MGA isn't already putting the final touches on a line I'll be shocked.

Nevermind that I think this gets appealed and drags on for a long time to come. I don't see how Mattel can claim that all 40+ of the stupid dolls infringe. Unless it's blatantly obvious that the guy had already worked out the Bratz name and "story" while at Mattel I'd imagine that, on appeal, only the first 4 or 5 dolls will be off limits.

Interesting story though.

[awa64]

AFAIK, the issue isn't whether he did it while he was at work. The issue is that he did the design work while on a 6-month hiatus from working at Mattel--not actively working for them, but still technically "employed."

I'd be shocked if Mattel didn't have a boilerplate NDA/Non-Compete that covered that pretty clearly, though.

I also remember hearing *somewhere* that he actually pitched Bratz to Mattel, and they turned it down. I can't find anything to confirm that, though.

[Smitty]

I'm so glad to thesis things go. Bratz never did much other that "Ho it up" Barbie at least had a few jobs.

[Autobus Prime]

Folks:

Hmm. I wonder what will happen now?

I can't see Bratz actually going away. It's too profitable. We'll see what happens in February.

(Bratz have no jobs? But I thought that was the oldest profession...(IMG:style_emoticons/default/icon-hotrod.gif) )

This post has been edited by Autobus Prime: Dec 4 2008, 01:47 PM

[Angelus]

I agree that Bratz are skanky, but you know what? Times are changing. What is acceptable now will be passe (no idea if I spelled that right) in a decade. Did collecting Transformers make any of you violent? No? Me either. Nor will collecting and playing with Bratz dolls loosen the morals of the next generation.
My daughter loves Brats, especially the four originals. In fact, I don't think she has any other characters. She will be sad to see them go, and I'll be sad in watching her.
As for morals, start parenting it up, people! You raise your kids, not their toys or TV.

[Mr.Blisterfists]

good.

I'm glad to see these ugly things gone. I'm glad the thief was punished, and I'm glad the competition was squashed.

now lets see the same thing happen to Barbie.

[Nyarlathotep]

*shrug* I always hated all dolls as a little girl.

But this is still kinda sad for little kids who won't see them again.

Kinda like when they stopped selling those awesome rock salt and vinegar chips around here.

*sniffle*

[X-BoB58]

I'm so glad to thesis things go. Bratz never did much other that "Ho it up" Barbie at least had a few jobs.

The only jobs Barbie is aloud to have are female jobs for females. She's not even aloud to be just a doctor, she's always a pediatrician, a vet, or an obstetrician. God forbid she ever get a highly paying, and highly educated job that doesn't revolve around motherhood.

[DeltaSeeker]

I'm so glad to thesis things go. Bratz never did much other that "Ho it up" Barbie at least had a few jobs.

The only jobs Barbie is aloud to have are female jobs for females. She's not even aloud to be just a doctor, she's always a pediatrician, a vet, or an obstetrician. God forbid she ever get a highly paying, and highly educated job that doesn't revolve around motherhood.

And to think at one time she got to be an astronaut. It'd be nice to see them revisit that sometime.

[MrBlud]

The only jobs Barbie is aloud to have are female jobs for females. She's not even aloud to be just a doctor, she's always a pediatrician, a vet, or an obstetrician. God forbid she ever get a highly paying, and highly educated job that doesn't revolve around motherhood.

...or you know start actually existing.