A judge has ruled that MGA Entertainment Inc. — which owns toy rotational molder Little Tikes Co. — has to stop making its landmark Bratz dolls, in the legal battle pitting MGA with Mattel Inc. and its rival Barbie.
Judge Stephen Larson of U.S. District Court in Riverside had issued an injunction in December barring MGA from making Bratz. MGA CEO Isaac Larian appealed that ruling.
But on April 27, Larson lifted a stay on his previous ruling barring MGA from making Bratz dolls. The judge said Bratz is Mattel's property, according to news reports. The judge also upheld a jury verdict for $100 million against MGA, based in Van Nuys, Calif.
Press reports said Larson appointed a temporary receiver to run the Bratz business.
Larian told the Associated Press he will appeal the ruling.
MGA and Mattel could not be reached for comment for this story.
In a three-month trial that ended in August, a jury found that Bratz dolls were designed by a former Mattel employee who secretly shared the concept with MGA. Bratz dolls, with their huge eyes, pouting lips and funky clothing, have hurt sales of Barbie dolls since MGA introduced Bratz in 2001.
If MGA Entertainment can no longer make Bratz dolls, what is the future of MGA, and Little Tikes, the toymaker in Hudson, Ohio? MGA bought the Hudson, Ohio-based toymaker from Newell Rubbermaid Inc. three years ago.
Tom Richmond, general manager for Little Tikes and executive vice president at MGA, did not return a telephone call seeking comment on April 28.
For the last several years, Tikes executives have talked with government officials for help, to remain in Hudson. The toymaker's sprawling complex, covering a 1.25 million square feet of manufacturing and 75,000-square-feet of office buildings, is way too big for current operations, they said.
Jody Roberts, communications manager for the city of Hudson, said the Bratz ruling “concerns us.” Tikes, which employs about 350 people, is an important company in Hudson, she said.
“We are still working very hard with the folks at Little Tikes and MGA. The state of Ohio and the city, we are still working to do all we can to help ensure that they stay in Hudson,” Roberts said. |
