Statement from Isaac Larian, CEO of MGA Entertainment

LOS ANGELES--(BUSINESS WIRE)--MGA Entertainment, Inc., in response to media and other inquiries, released the following statement today clarifying certain issues in its trial with Mattel over the Bratz dolls:

Isaac Larian did not know who Carter Bryant was until September 1, 2000.

Isaac Larian told Carter Bryant to leave Mattel on October 4, 2000 (the date he signed the contract with MGA) and start working full time at MGA.

Until Mattel filed its lawsuit against Carter Bryant in April 2004, Isaac Larian and MGA believed that Carter Bryant had left Mattel on October 4, 2000, as instructed by Mr. Larian. Mr. Larian and MGA were not aware that Mr. Bryant was working at Mattel and for MGA from October 4 to October 19, 2000, and getting paid from both companies for those two weeks.

The salary Mr. Bryant received from Mattel during those two weeks was about $2000; the salary Mr. Bryant received from MGA for those two weeks was about $2,250. Despite this fact, Mattel is asking the jury to award them damages (from Isaac Larian) over $700 million for these two weeks (October 4-19, 2000)!

Mattel, on the eve of trial, fully settled with Carter Bryant for what they termed all of his “sins.”

Appeals court rejects halt to Mattel-MGA Bratz case

LOS ANGELES (Reuters) - A U.S. appeals court on Tuesday declined to intervene to stop Mattel Inc's trial against Bratz doll maker MGA Entertainment Inc over ownership of the popular doll franchise after a juror made ethnic slurs against MGA's chief executive and founder.

The Ninth U.S. Circuit Court of Appeals ruled in a two-page opinion that privately held MGA had "not demonstrated that this case warrants the intervention of this court" in its petition for an emergency stay.

The jury awarded Mattel ownership of dozens of concept drawings and models in the first phase of the trial before the juror's comments came to light and she was excused by the judge. The same panel is hearing testimony in a damages phase that is expected to conclude on Friday.

MGA attorneys had argued in an emergency petition filed on Thursday that deliberations in the first phase of the trial had been tainted by the juror's remarks and that the family-owned company faced ruin if Mattel won the $1 billion-plus in damages it is seeking.

Mattel and its attorneys were not available for comment. An attorney for MGA could not immediately be reached for comment.

In a two-page decision released Tuesday, the appellate court said that MGA has “not demonstrated that this case warrants the intervention of this court.” However, the panel is still considering the broader appeal.

This whole trial process has been one mess to me and truly frightening in the larger way the whole judicial process has completely failed. A judge that literally makes things up, skews stories in ways they did not occur to fit his agenda and a jury (minus only one person) that was fine with a racist continuing with them- and now this is the jury deciding this case. A total failure of everything. My predicyion is if the jury now does the right thing and gives Mattel nothing that Mattel will go crazy saying "Oh this jury felt bad for their mess-up now they are over compensating out of pity!" This whole mess should have been a mistrial and started again.

Still don't know what Mattel thinks it won since Carter's very first drawings of the Bratz were NOT awarded to Mattel. His first drawings would have marked when he created the Bratz, and he was NOT at Mattel then, so they were NOT created on Mattel's time so what is the point of this trial now?

This bad joke of a trial plods on and frankly means nothing as far as fair and this judge has been nasty since the start.

I have to say I am not surprised. Sadly. The judge has been making nasty remarks against MGA and Carter Bryant from the start of this trial so the next step is eventually appeal. If the first four drawings Carter did were NOT made while at Mattel then how can Mattel own anything? This jury did not give Mattel ownership of the first four drawings he did- and wouldn't that be when the Bratz were created?

This trial is a sad joke really. Not a funny one.
:P
sfb


Judge rejects mistrial motion in Bratz trial
By GILLIAN FLACCUS Associated Press Writer
Article Launched: 08/04/2008 02:22:39 PM PDT

RIVERSIDE, Calif.—A federal judge has rejected a mistrial motion in a copyright infringement case pitting Mattel Inc. against the maker of the popular Bratz dolls.

In his ruling Monday, U.S. District Judge Stephen G. Larson discounts arguments made by MGA Entertainment Inc. after a juror was dismissed on July 25 for allegedly using racial slurs during previous deliberations.

MGA claims the remarks targeting CEO chief executive Isaac Larian tainted the panel's verdict in the first phase of the case.

The jury ruled on July 17 that Carter Bryant, the designer of the pouty-lipped Bratz dolls, came up with the concept while working for rival Mattel.

That verdict set up the current damages portion of the trial.



Bratz vs. Barbie case is denied mistrial motion
MGA Entertainment sought a mistrial because of a juror's alleged ethnic slur. But a judge says the remarks were made near the end of deliberations.
http://www.latimes.com/business/la-fi-bratz5-2008aug05,1,2578808.story
By David Colker, Los Angeles Times Staff Writer
August 5, 2008
The Barbie vs. Bratz fight in federal court will go on.

U.S. District Judge Stephen Larson in Riverside today denied a motion to declare a mistrial sought by the maker of the lucrative Bratz doll, MGA Entertainment Inc., because of a juror's reported ethnic slur.

The jury already had found that MGA and its chief executive, Iranian-born Isaac Larian, had improperly aided a Mattel Inc. Barbie designer who created the concept in violation of his Mattel contract.

The trial, which began May 27, was in its damages phase.

But on July 25, eight days after the initial verdict, a juror told the judge that a fellow juror had said during deliberations that her husband described Iranians as "stubborn, rude" and as "thieves" who have "stolen other person's ideas," according to a court document. The juror who was accused of making the remarks was dismissed that same day.

Today, Larson let stand his initial ruling. He said in a court order after the remarks were revealed that the trial could go on because the slurs came near the end of deliberations, after the jurors had already decided on all key points. (And it means nothing to this judge that only one person came forward? He now has a jury in phase two that were FINE with going on with a racist and were not going to say anything how is this fair? This is now a jury of people only minus one that were okay with having a racist with them, it's a complete joke now.)

In a 30-page statement submitted to the judge, MGA had argued that although the juror's "tainted views were not disclosed until after deliberations were nearly complete, the other jurors plainly could have been impacted by her views and thoughts before she disclosed her bias."

MGA also had pointed out that prospective jurors had been told before the trial began that one of the key figures in the case had immigrated from the "Middle East," yet the juror who later reportedly made the slur said in court, "I can be a fair and impartial juror."

In its written argument, Mattel said it "condemns the remark was made" but went on to say, "as the Supreme Court has repeatedly explained, having preconceived notions -- even abhorrent ones -- is very different from being 'biased' in the legal sense relevant here."

The verdict on July 17 provided a much-needed Wall Street boost for Mattel. Its shares shot up 13% the next day, based on the court news and a better than expected earnings report.

But things continued to look bad for its signature Barbie line, whose sales were down 21% in the United States in the second quarter compared with the same period last year.

MGA and Larian, who seldom missed an opportunity to take digs at Mattel, have been a thorn in Mattel's side. And industry analysts had said that the success of Bratz -- estimated to boost MGA's yearly revenue to $2 billion from $500 million -- had seriously cut into Barbie sales.

Statement from Isaac Larian, CEO of MGA Entertainment

LOS ANGELES--(BUSINESS WIRE)--

The following is a statement from Isaac Larian, CEO of MGA Entertainment:

America has always meant a great deal to me and my family. In this great nation of growing diversity, we pride ourselves in having personal freedoms, liberty and justice for all. I came to this country to avoid religious and ethnic persecution. Yet, I am saddened that in today's day and age, in 2008, when an African American is running for President for the first time, there's still racism in this country.

It was disheartening to hear that a juror in our trial against Mattel had made ethnic and racial slurs against me and my family. I am grateful that another juror had the courage to come forward and acknowledge this act of racism. The situation left me wondering how a fair verdict in this trial could have been reached. The juror's valiant act of taking this matter to the court by telling presiding US District Judge Stephen Larson what had transpired behind closed doors is what makes me proud of our legal justice system and of being an American.

Every person involved in a lawsuit is entitled to a fair and untainted verdict regardless of their status in life or ethnicity.

I was moved last week when I saw highlights on television from Senator Barack Obama’s speech in Berlin in front of 200,000 Germans, where he called for the walls of racism around the world to come down. It made me proud to be an American. There is no place for hatred based upon race, ethnicity or nationality in this great country of ours.

Sorry but this judge too needs to be tossed off this whole case if he can't grasp how harmful having a racist during deliberations is - he is crazy. That juror was a part of the whole process influencing things all along, people discuss and give opinions and come to conclusions all listening to each other who knows who was swayed by her along the way, by many factors. One of those factors was a racist women who discussed the case out side with her racist lawyer husband. I also feel disgusted that the jury minus ONLY ONE was seemingly fine with going ON with phase two with a RACIST in their midst! How is this in any way fair?
If this isn't a mistrial this judge should be investigated because why is this not simple.

MGA’s Isaac Larian: The Verdict Was Based on Racism
Posted by Dan Slater
Late Friday, we noted the news out of California that one of the jurors in the Barbie-Bratz trial, in which Mattel won the first phase — was removed for making slurs about the ethnicity of Isaac Larian, the Jewish, Iranian-born CEO of MGA, maker of Bratz.

A few more details emerged over the weekend: According to the LA Times, a court order said the juror remarks characterized Iranians as “stubborn, rude” and as “thieves” who have “stolen other person’s ideas.” The remarks were made during deliberations in the first phase of the trial that found Larian had aided a Mattel Barbie designer, Carter Bryant, who created the Bratz concept in violation of his Mattel contract.

After interviewing other members of the jury in private, District Judge Stephen Larson determined that the remarks were made near the end of deliberations, after the jury had already come to unanimous agreement on key issues. “Although the remarks offended and upset several of the jurors,” Larson said in the court order, “the remarks did not, in any way, affect or influence the decision made by the jury.” (OMG WTF!! get a NEW JUDGE!)

But, reports the LAT, Larian, who was in the courtroom Friday for the proceedings, bitterly disagreed. “The verdict that was put against us was only based on racism,” he said. “I am saddened that today, in this day and age when for the first time in the history of America an African American is running for president, that there is still racism in this country.”

In a statement, Mattel said that it “finds this development to be very unfortunate. This trial, however, has been, and will continue to be, about Mr. Larian’s and MGA’s wrongful behavior.”

MGA asked that the court declare a mistrial, wiping out Mattel’s victory. The motion will be heard when court reconvenes Aug. 4. News here

His is an all-American toy story
Stefano Paltera / For The Times

HUMBLE BEGINNINGS: Isaac Larian, chief executive of Van Nuys-based MGA Entertainment, came to the States in 1971 at the age of 17. “The first great meal I had in the U.S. was liver and onions at Spires,” he says of the Lawndale eatery he had worked for.

Isaac Larian, who emigrated from Iran as a youth, built Bratz doll maker MGA Entertainment into a major force in the toy industry.
By David Colker, Los Angeles Times Staff Writer
July 27, 2008
Less than a couple of hours after a resounding defeat in federal court, Isaac Larian -- the blustery chief executive of MGA Entertainment Inc. -- sounded like a man getting into the ring, not one who had just gotten a legal beating.

"They are so dishonest," he said of archrival Mattel Inc., which had just won a jury victory in a long-fought copyright infringement lawsuit that could cost MGA more than $1 billion.

Playing for keeps
"Their lawyers are dishonest," said Larian, who sees the case as a vendetta by Mattel against him.

It wasn't an unexpected reaction from the feisty Larian, 54, who built his Van Nuys-based company into one of the major forces in the toy industry from a humble enterprise so shaky that it filed for bankruptcy protection in 1997.

That success was mostly built on one product -- the Bratz dolls that MGA debuted in 2001. Beloved by preteen girls, the hip dolls with tight outfits and bare midriffs that exuded street smarts (uncomfortably close to street walker, according to some angered parents) soon made MGA anywhere from $500 million to $2 billion a year, depending on which analyst was doing the estimating.

But July 17, after six weeks of testimony, the jury found that the Bratz dolls were created by a designer who had been working at Mattel under an exclusivity contract. The jury also found that MGA and Larian aided the breaking of that contract.

The battle, and courtroom fireworks the trial generated, are far from over. On Friday, during the damages phase of the trial, it was revealed that one of the jurors had made slurs about the ethnicity of Larian, who was born in Iran. The juror was removed and MGA asked for a mistrial to be declared. The matter will be taken up in court Aug. 4.

A mistrial would wipe out Mattel's victory, justifying Larian's refusal to enter settlement talks with Mattel.

"I need to sleep good at night," he said. "I can't be in bed with them."

Strolling confidently through the courthouse hallways during breaks, Larian was always nattily dressed in well-tailored suits, and always willing to give a comment to reporters.

During noon breaks, he was often seen carrying a Trader Joe's bag that didn't go with the suits. As he entered the private sanctuary of his lawyers' workroom one day he explained, "It's my lunch. My wife is very good to me."

In a recent interview, he traced his feistiness and devotion to family to his childhood.

"It goes back to my upbringing," he said. "I grew up in Iran, being Jewish."

His family was close and he learned the value of work from his parents, who owned a retail fabric store. "My parents were not wealthy," he said, "and I had to work after school at the shop."

Larian came to the U.S. in 1971 at the age of 17. He said he had only $750 and got a job as a dishwasher at Spires coffee shop in Lawndale.

"The first great meal I had in the U.S. was liver and onions at Spires," he said.

He worked the night shift, eventually getting promoted to busboy and going to school during the day at Cal State Los Angeles as an engineering major. He planned on returning to Iran after graduating.

"The goal was to go back and get engineering work on the infrastructure," Larian said.

But by the time he made it back to Iran in 1979, the revolution had created an Islamic republic.

"Being Jewish, I didn't see that as a place where I could live," Larian said. He headed back to the U.S. and with his brother, Farhad, began an import business called Surprise Gift Wagon. He never worked as an engineer.

"My kids ask about that," Larian said. "I tell them, 'In engineering they teach you how to solve problems and in business you have to solve problems every day.' "

They imported brass giftware and other items. In 1987 they formed a division called Micro Games of America (later MGA) to distribute a Nintendo hand-held game machine called the Game & Watch. It couldn't hold more than one game at a time, and after an initial surge in sales, the U.S. venture faltered.

"I had so much inventory and nobody wanted to buy," Larian said. "It was a disaster for me that taught me a big lesson. In the toy business, kids are always looking for fresh, new products."

Nintendo debuted the legendary Game Boy in 1989, but the Larians didn't get a piece of that. The brothers were also feuding over the operation of the business, and in 2000 Farhad sold his portion to Isaac for about $9 million.

Farhad later sued his brother, claiming that Isaac had hidden a $3-billion distribution deal from him that greatly enhanced the value of their company. The suit eventually was withdrawn.

Larian said the relationship between him and his brother is civil but not healed. To explain, he Americanized a Persian proverb: "They say if you drop and break an expensive vase, you can Crazy Glue it back together. But there is always a mark there."

The court battle with Mattel is the biggest challenge yet to his business. But even in the midst of this trial, it's clear that he enjoys looking back on what he sees as his all-American story.

"A few years ago I took my kids back to the coffee shop where I worked," Larian said. "We sat down and ate."

As far as he could tell, none of the people who had been there in his dishwashing and busboy days was still at the restaurant. But there was a reminder of those times.

"Liver and onions," he said. "It was still on the menu."
Source!

From the court order
Juror No. 8 made grossly inappropriate remarks concerning defendant Isaac Larian
based on his ethnicity during jury deliberations. Specifically, Juror No. 8 indicated that her husband, an attorney, has told her about client or clients who are Iranian and who are stubborn, rude, stingy, are thieves, and have stolen other person’s ideas.
Although Juror No. 8 minimized her remarks and insisted that she did not mean to do anything wrong, the relative consistency and degree of detail of the other jurors who heard her make the remarks, combined with other factors that lend credibility to the other jurors’ account of the remarks and not to Juror No. 8, leads the Court to conclude that Juror No. 8 made the remarks, or something close to the remarks, set forth above.


Bratz juror dismissed, MGA seeks mistrial
Friday July 25
By Gina Keating

LOS ANGELES (Reuters) - A juror in the copyright infringement trial over Bratz dolls was dismissed on Friday for making an ethnic slur against MGA Entertainment Inc Chief Executive Isaac Larian, causing MGA to seek a mistrial and casting doubt on the outcome of the case brought by Mattel Inc (NYSE:MAT - News).

Mattel had prevailed in the first phase of trial, winning the rights to dozens of original Bratz drawings and sculpts, and was seeking damages of more than $1 billion.

U.S. District Judge Stephen Larson dismissed the female juror from the federal case in Riverside, California after another panelist complained about remarks she had made during deliberations over the drawings about Larian, an Iranian Jew who immigrated to the United States as a teenager.

Larson suspended the proceedings and set an August 4 hearing to determine whether the case should continue or end in a mistrial.

MGA attorney Thomas Nolan said the female juror told the rest of the 10-member panel during deliberations over which company owns the drawings that her husband, an attorney, had "a number of Iranian clients and they are stubborn and are known to be thieves."

Larian, who has attended nearly every day of the two-month trial, broke down after hearing about the comment, Nolan said.

"I moved today for a mistrial arguing that Mr Larian and MGA are entitled in the federal system to a unanimous verdict of all jurors and that all jurors must be impartial and not have hidden prejudices," Nolan said.

Mattel said in a statement that it found "this development to be very unfortunate."

"This trial, however, has been and will continue to be about Mr Larian's and MGA's wrongful behavior. Nothing changes that," the statement said.

Mattel won a near total victory over MGA in the first phase of the trial when the jury last week validated its claims to most of the concept drawings and models upon which the designs for the first four Bratz dolls were based.

The jury found that Bratz creator Carter Bryant made most of the drawings and models at issue while he was under contract to Mattel as a Barbie designer, and that MGA obtained them illegally.

This week, the panel was hearing evidence about whether the Bratz dolls and accessories made and sold by MGA since 2001 violate Mattel's copyright on the drawings and sculpts.

Mattel was seeking more than $1 billion in damages in connection with the alleged infringement.

Shares of Mattel fell 3.9 percent, or 81 cents, on Friday to $20.00 in after-hours trade.

(Reporting by Gina Keating, editing by Leslie Gevirtz)

This would be seriously amusing except that people's lives are being affected. Yeah let's bring in artists to answer questions for Mattel to say a pink square is a purple diamond- who are these artists? Nervous Mattel employees? They'll say what they are told this is hardly fair.

"Nolan plans to call artists to the witness stand to detail the similarities and differences between the dolls Bryant thought up in 2000 and those that MGA eventually produced. He acknowledges that the evaluation is subjective and that jurors will also be making their own decisions independent of expert testimony."

Back to the Drawing Board in Barbie-Bratz Damages Phase

Posted by Ben Hallman

How closely do the drawings of a former Mattel designer resemble the Bratz dolls MGA Entertainment Inc. started selling in 2001? That's the question a jury will attempt to answer in the damages phase of the Barbie-Bratz smackdown that began yesterday in a Riverside, Calif., courtroom.

Read all the story here

Even if they do it just proves nasty bullies get ahead in the world,
they are the last people to speak of "morals" when speaking of
their legal dealings.

Still nothing to worry about yet, Mattel owns some of Carter's
drawings and early prototype items derived from them, so what does
that mean? Well that's what this is about. Quotes:

"The panel, which could not decide which company owns four original
drawings of the Bratz characters, must now determine whether Mattel's
drawings are "substantially similar" to dolls developed by MGA, and if
so, how much of the estimated $3 billion in profits MGA should have to
give to Mattel."

""The question is whether a consumer says these are substantially
similar," he told the jury.

But MGA attorney Thomas Nolan rejoined that the company's doll
designers had changed Bratz substantially from the concept drawings,
which "don't say nearly enough about how to make dolls that sell."
MGA went on to create more than 30 different characters and play
themes, fashions and accessories that had nothing to do with Carter
Bryant or other Mattel employees, Nolan said."

Full article below.
:)
sfb

Mattel, MGA argue in damages phase of Bratz trial
Thu Jul 24
By Syantani Chatterjee

RIVERSIDE, Calif (Reuters) - Mattel Inc (MAT.N: Quote, Profile,
Research) and MGA Entertainment Inc on Wednesday laid out widely
diverging valuations of the Bratz doll franchise in the damages phase
of a U.S. copyright infringement trial that could have major
implication for both toymakers.

The jury in Riverside, California, last week found that former Mattel
designer Carter Bryant made scores of concept drawings and sculpts for
Bratz while he was employed by Mattel. The jury awarded rights to
those works to Mattel.

The panel, which could not decide which company owns four original
drawings of the Bratz characters, must now determine whether Mattel's
drawings are "substantially similar" to dolls developed by MGA, and if
so, how much of the estimated $3 billion in profits MGA should have to
give to Mattel.

While Mattel's attorneys tried to convince the 10-member jury that the
giant toymaker deserved all profits from Bratz and related
accessories, company Chairman and Chief Executive Bob Eckert appeared
to try to manage expectations.

"Regardless of the amount of damages award against MGA and its CEO in
this phase of the trial, this has been a moral victory for Mattel
employees worldwide," Eckert said in a statement handed out to
reporters at the trial.

A big damages award could compensate for sagging sales of Mattel's
iconic Barbie doll, whose U.S. sales slipped 21 percent last quarter
in the face of competition from Bratz, and could also prove a
crippling blow to family-owned MGA.

NOT JUST A DOLL

Mattel attorney Bill Price advised the jury during his opening
statement to consider basic features -- such as the dolls' stance,
clothing, eyes and other facial features -- rather than colors or
accessories in finding whether the dolls infringe on the original
drawings that Mattel owns.

"The question is whether a consumer says these are substantially
similar," he told the jury.

But MGA attorney Thomas Nolan rejoined that the company's doll
designers had changed Bratz substantially from the concept drawings,
which "don't say nearly enough about how to make dolls that sell."

MGA went on to create more than 30 different characters and play
themes, fashions and accessories that had nothing to do with Carter
Bryant or other Mattel employees, Nolan said.

The dolls might look similar to Carter Bryant's drawings "on a blink
test" but MGA built not just a doll but a successful brand, Nolan said.

Price said MGA should turn over to Mattel all profits it made from the
dolls since 2001 -- an estimated $987 million -- and should also pay
punitive damages based on the estimated $1.9 billion net worth of MGA
Chief Executive Isaac Larian.

MGA believes that no damages are appropriate, and if it is forced to
give Bratz profits to Mattel, the amount should be limited to its
first-year profits of $4.3 million, Nolan said.

In a worst-case scenario, MGA should pay no more than $422.2 million,
which subtracts the value-added products and branding devised solely
by MGA, Nolan said.

Testimony in the damages phase was expected to last two weeks.

(Writing by Gina Keating; Editing by Gary Hill)
Read the story here

Mattel did NOT win, so don't worry yet about this but of course the same ignorance the news has shown in their bashing they are of course showing now. Just because they get their stuff published in the "news" doesn't mean they know what they are doing obviously. This is not over at all and there is still a long way to go and yes MGA is going to fight this to the end and take all the legal routes offered by the same legal system Mattel loves to abuse.
:P
sfb

This quote is the best:
*******
Not so fast, says Isaac Larian, the Iranian-born entrepreneur who is the majority owner of MGA (BusinessWeek.com, 6/10/08), which is also based in suburban Los Angeles. Larian says he'll have an opportunity to reveal new evidence the jury was barred from seeing in the first phase of the trial. In the second phase, which is to begin on July 23 and last about three weeks, the same jurors will be asked to determine damages. Larian has also vowed to appeal. "It's not over yet," Larian told BusinessWeek. "We own the name Bratz. There's no way they are ever going to get it."
***********


Could Mattel End Up With Bratz?
In winning its copyright case against MGA, Mattel could grab hundreds of millions in back royalties—and maybe even ownership of the superhot Bratz dolls

by Christopher Palmeri

It was the Battle of the Dolls, and Barbie has won. A U.S. District Court jury in Riverside, Calif., found toymaker MGA Entertainment guilty of contract interference and copyright infringement when it hired doll designer Carter Bryant away from Mattel (MAT) in 2000. The verdict could bring the world's largest toymaker hundreds of millions of dollars in back royalties or outright ownership of the wildly successful Bratz line of dolls launched by MGA in 2001.

The July 17 decision represents a rare shot of good news for Mattel, which has suffered a major loss of market share for its flagship Barbie brand since the Bratz launch. Mattel has also been involved in a spate of toy recalls over the past year. "This is a victory for all the hard-working people at Mattel who come together to create many of the most beloved toys for children," said Chairman and Chief Executive Officer Robert Eckert in a statement. "It is also a victory for all those who believe in fair play."

Not so fast, says Isaac Larian, the Iranian-born entrepreneur who is the majority owner of MGA (BusinessWeek.com, 6/10/08), which is also based in suburban Los Angeles. Larian says he'll have an opportunity to reveal new evidence the jury was barred from seeing in the first phase of the trial. In the second phase, which is to begin on July 23 and last about three weeks, the same jurors will be asked to determine damages. Larian has also vowed to appeal. "It's not over yet," Larian told BusinessWeek. "We own the name Bratz. There's no way they are ever going to get it."

On July 18, Mattel, based in El Segundo, Calif., reported that its earnings fell by nearly half, to $11.8 million, or 3 cents per share, in the second quarter. Barbie sales worldwide fell 6%. Still, the results beat analysts' already pessimistic expectations. Linda Bolton Weiser, an analyst with Caris Research, estimates that Bratz generates $1.1 billion a year in sales and could add as much as $115 million a year in earnings to Mattel if the company was awarded all rights to Bratz sales and profits. Buoyed in part by the Bratz verdict, Mattel shares surged 12%, to $20 per share.
The Bratz Conception

The case focused on Bryant, 39, who worked at Mattel but claimed he conceived the idea (BusinessWeek.com, 6/13/08) for the pouty-lipped Bratz dolls during an eight-month hiatus from the company in 1998. At the trial, Bryant testified that he used Mattel doll parts and fellow employees' time, and he sketched many Bratz drawings after returning to Mattel in 1999. As is customary in the industry, Bryant signed an agreement giving Mattel rights to anything he designed while employed by the company.

Bryant earned more than $30 million in royalties from MGA. He settled a copyright infringement suit brought against him by Mattel just before the MGA case began in May.

Larian admits the work Bryant did on the dolls while at Mattel did not make him a sympathetic witness for MGA. "There's no question he did not have good judgment," Larian says. "But we didn't know about that. Why punish MGA?"

Larian says that in the second phase of the trial and for the appeal he'll point out that Mattel uses much the same legal review for hiring new toy designers as MGA did. He claims Mattel was well aware of the Bratz dolls and was even offered a chance to distribute them in 2001. He says further evidence will show Mattel's strategy has been to "litigate MGA to death." Larian has his own countersuit claiming Mattel copied Bratz designs for its own doll lines. That case could go to trial in the fall.

Scott Landsbaum, a Los Angeles attorney with several toy industry clients, says he always tells them to work with inventors who work independently and not for rival toy companies. "All these creative people dream of having their own lines," he says. "If you've got an employee from another company approaching you with an idea, you ought to think long and hard about buying it."

Palmeri is a senior correspondent in BusinessWeek's Los Angeles bureau.

For Immediate Release
MGA Responds to Jury Verdict in First Phase of Trial Involving BratzTM
Riverside, CA – July 17, 2008 – For the past six weeks, MGA has battled a toy
goliath in Mattel in a trial regarding when the BratzTM idea and drawings were
created by Carter Bryant, a former Mattel employee. As Tom Nolan, MGA’s
lawyer told the jury during his closing argument, “Mattel wants to take ideas and
drawings that they did not conceive of, that they did not draw and that they did
not make.”

Today the jury returned a verdict in what is only Phase 1(A) of the trial. There
are significant issues that remain to be tried in Phase 1(B) of the trial, including
whether Mattel owns any copyrights in Bryant’s drawings. If so, the jury will
decide whether MGA’s BratzTM dolls are infringed by any Mattel copyrights, and
what the damages are (if any).

“Most importantly, the verdict issued today does NOT entitle Mattel to any rights
whatsoever of Bratz,” said Nolan, lead trial lawyer for MGA. “The verdict merely
determined that certain drawings by Carter Bryant were created while he worked
at Mattel.”

As the scope of Phase 1(A) was narrowly limited, MGA will now be given an
opportunity in Phase 1(B) to present to the same jury all of its defenses to
Mattel’s allegations. The issue in Phase 1(B) is to determine whether MGA’s
BratzTM dolls infringe any copyrights Mattel may own of Carter Bryant’s drawings.

“We at MGA remain confident that we will ultimately be successful at the
conclusion of the 1(B) trial and/or before the Ninth Circuit Court of Appeal. This
is because it is undisputed that MGA – not Carter Bryant – independently created
the Bratz dolls,” said Isaac Larian, CEO of MGA Entertainment. “Carter Bryant
did not have anything to do with the many Bratz-related products we created,
such as Bratz Babyz, Lil’ Bratz and Bratz Kidz to name a few,” Larian added.

MGA points out that Mattel is only suing MGA regarding the “first generation” of
BratzTM dolls that were issued in 2001. “Under no circumstance will Mattel be
able to assert ownership of the Bratz franchise – which will always belong to
MGA,” Larian said. “Our customers, retailers, vendors, and suppliers can take
comfort in knowing that there will be no disruption in MGA’s manufacturing and
sales of Bratz dolls or any other products,” Larian said.

MGA contends that Mattel is trying to hijack what the family-owned company
created from scratch over the past seven years of hard work. They believe that
Mattel waited from 2001, when the BratzTM line of dolls was introduced into the
marketplace, until July 2007 to come after them in court – years after it admitted
in internal marketing documents that it was “out thought and out executed” by
MGA. MGA further contends that Mattel has used litigation as a “business
strategy” against MGA. MGA believes Mattel, having failed to compete in the
marketplace, has resorted to litigation as a business strategy – with the intention
to “litigate MGA to death” as one former Mattel executive testified.

Nolan further stated: “Please wait for ‘part 1b of this Phase of the trial to be
completed in a few weeks-- we are confident that the jury or court will vindicate
MGA and Isaac Larian of all of Mattel’s claims, when they hear the ‘rest of the
story’,” .

MGA has received a great amount of support throughout the duration of this trial.
“I am thankful to all of MGA’s employees, vendors, and customers for their
incredible daily support while we fight Mattel for what’s rightfully ours,” said
Larian.

Mattel may have won some things but big surprise, bad people get ahead in this world all the time it's proven over and over again.

but... Not Lost yet! :) :)
Quotes:
http://groups.yahoo.com/group/BratzWorld/message/85813

Even if Mattel ends up owning every drawing at issue in the case,
> hefty damages are still not a given -- it has to convince the jury in
> a separate damages phase of trial that it also has rights to MGA doll
> designs that differ from Bryant's drawings.


MGA attorneys say they will argue that federal copyright law requires
> Mattel to show that each of the drawings it wins is "virtually
> identical" to a particular Bratz doll.


> MGA believes that since it has changed the Bratz face and clothing
> designs every year since the franchise's debut, Mattel could claim
> damages only from 2001 -- a year the doll line earned just $26
> million, MGA said.


Still a long way to go so stay hopeful Bratz Fanz!!!
:)
sfb
Stay cool!!

Statement from Isaac Larian, CEO, MGA Entertainment

LOS ANGELES--(BUSINESS WIRE)--The following is a statement from Isaac Larian, CEO of MGA Entertainment:

"MGA Entertainment is the owner and creator of the Bratz(TM) dolls, a world-wide phenomenon. We have been an innovative company since our inception. Throughout the company's history our team of designers and experts have been among the most innovative and advanced toymakers in the industry creating such icons as Me and My Shadow(TM), My Dream Baby(TM), Commando-Bot(TM), Color FX Handheld Games, VR3D Games, One Man Jam(TM), DJ Mixer (and much, much more) prior to Bratz(TM). We have been known as an innovative industry leader in Baby Dolls/Innovative Special Feature Dolls for years. In 1997, MGA won the Family Fun Toy of the Year Award for its 'Singing Bouncy Baby Doll.'

"We are now locked in a battle with Mattel, the Goliath of the toy industry, over the future of the Bratz(TM) brand that MGA developed. In a front-page story in The Wall Street Journal that ran on May 23, 2008, the lead paragraph stated 'Four years ago, Mattel Inc., exhorted its executives to help save Barbie(R) from a new doll clique called Bratz.'

"The story goes on: 'The House is on Fire!' said an internal presentation on the decline of its iconic Barbie(R) doll franchise. Market share was dropping at a 'chilling rate,' the presentation said. The story adds 'Barbie needed to be more aggressive, revolutionary, and ruthless.'

"This my friends, is what we at MGA are up against. We are David fighting a mighty Goliath. But we are fighters. I came to this wonderful country as an immigrant with no more than $750 in my pocket, with nothing more than a dream. I will not let Mattel destroy that dream, which has brought joy to the millions of girls and small children who love our Bratz(TM) dolls. We remain confident that once the jury hears our side and examines the evidence, the jury will find in MGA's favor."

Hate Mattel and how they bully the Bratz around? Check these cool videos out, by Furjay and Alcy from Bratz World:

LOVE IT! Send it to your fellow Bratz fanz :)

If they don't launch go to the direct page:
Watch their great video here And the other great video here!! :)

Bad quality clip sorry! but basically the root of this case. Mattel just can't stand someone doing better than they are and taking money away that they believe should have been in their pockets. Be careful walking past Mattel property or speaking to employees you might get sued for thinking..

Here is where we stand now.

Wall Street Journal has a lot of the ugly details and it brings you up to date also provides interesting pix and graphics. I also hate the title of it and Carter Bryant could have bought the cure to cancer and they would only mention "thongs" etc to be sensational so I am not too happy about the slant of some of the comments but at least it shows a glimpse into the twisted minds of Mattel's lawyers:

BARBIE'S REVENGE
Brawl Over Doll Is Heading to Trial

http://online.wsj.com/public/article/SB120345433842377837-W_BllfKNQmaVzfF_UWlXmZ9rmPM_20080621.html?mod=tff_main_tff_top

Cut and paste if the link does not work.
http://online.wsj.com/public/article/SB120345433842377837-W_BllfKNQmaVzfF_UWlXmZ9rmPM_20080621.html?mod=tff_main_tff_top

Yes Bratz World is the online Bratz fan club they mention. What that involves is an artist, at the time MGA's only cartoon artist, wrote us a nice letter about a day in his life.. he talked of his art and his work there and brought up Carter in passing. The artist did nothing wrong to speak of his day and his work as far as I see it, but of course Mattel warps everything so you can't SAY anything without them looking for a way to jump you.. (oh btw did you know they think they own the word "Say" not a joke.. read this thread on Bratz World and what they are doing to a special education company that used the word "Say" in their special education speech books!). He was being honest unlike many people nowadays, and did not want to take full credit for the Bratz since we were telling him his art was great, he gave credit where credit is due. Simple as that. He was a nice guy unlike Mattel's goons who pretty much don't care what they claim they just want that Bratz money.

What it will come down to is WHEN were the drawings done. Then go from there because you know they will try every nasty trick they can. I am so ashamed for Mattel, they spy and videotape people's children? The way they conduct themselves is truly low and I feel sorry for anyone that has to say they work for Mattel. I know they have families to support and the artists mean well by being creative but we have heard from other former Mattel people, they just keep watering down the designs, try to control everything and now you see the way they let their legal teams act. It's sad.

edit:
wsj condenses the article:
http://blogs.wsj.com/law/2008/05/23/barbie-battles-bratz-as-toy-makers-head-to-trial/#comment-211018

Or maybe he is being paid a ton to not go and get a job at MGA or anywhere else for 2 years and spill valuable "secrets" -what the heck would they want him to suggest as a consultant? ... either way being an "incomplete success" worked well for this guy. This guy took loans they renamed rebates and bonuses so they would not get sued. Its very weird and makes you wonder what the real story is behind this.
:P

************************
Mattel to Pay Former Executive $5.43 Mln in Severance
Bloomberg

Mattel Inc. agreed to pay the former head of the Barbie business $5.43 million to leave the company after sales for the doll fell sharply during his tenure.
Matthew Bousquette, who ran the Barbie and Hot Wheels lines, is receiving three times his annual salary and a $750,000-a-year job as a consultant to Mattel, the company said in a regulatory filing today.

Barbie sales dropped for two straight years under Bousquette as the brand struggled to compete with more popular dolls such as Bratz. In October, Mattel, the world’s largest toymaker, folded Bousquette’s division into its Fisher-Price unit.
Bousquette, who had been with Mattel for 17 years, will also receive health-care benefits for another two years or until he finds another job, the El Segundo, California-based company said in a filing with the U.S. Securities and Exchange Commission. He also held options on about 2 million Mattel shares as of Dec. 15, which may be exercised through March, according to the filing.
Shares of Mattel rose 1 cent to $16.01 at 12:17 p.m. in New York Stock Exchange composite trading. They are headed for their first annual decline in six years and have fallen 18 percent in 2005.

Mattel spokeswoman Lisa Marie Bongiovanni didn’t immediately return a call requesting comment.

Bratz Dolls
Mattel’s third-quarter profit dropped 12 percent after sales of Barbie, introduced in 1959, plunged 18 percent as girls seek multicultural Bratz dolls that wear edgier fashions and have names such as Jade and Yasmin.
Chief Executive Officer Robert Eckert hasn’t been able to reverse the decline with fantasy-themed Fairytopia dolls for younger girls and an animated movie on DVD featuring the voice of actress Lindsay Lohan as part of its My Scene line for teens.
Profit has fallen in four of the past seven quarters, and Mattel reported a second-period loss. Fourth-quarter and annual net income is expected to drop, according to analysts surveyed by Thomson Financial.

Sales of Bratz dolls and related licensed merchandise this holiday season picked up relative to Barbie sales, based on discussions with 40 Wal-Mart Stores Inc. toy department managers and industry sources, JPMorgan Chase & Co. analyst Dean Gianoukos wrote in a Dec. 20 report. Gianoukos, who is based in New York, rates Mattel "neutral."

Overall U.S. toy sales are likely headed for their third consecutive annual drop as children put aside action figures and board games in favor of video games and other electronic gadgets. Toy sales will likely fall at least two per cent this year, Piper Jaffray & Co. analyst Anthony Gikas wrote in a Dec. 8 report. Gikas, based in Minneapolis, rates Mattel "market perform."
©  2005