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Judge orders Mattel, MGA CEOs to talk about Bratz

LOS ANGELES
Tue Sep 9, 2008 9:58pm EDT
Isaac Larian, Chief Executive Officer of MGA Entertainment, shows a sample of their new toy called the ''Muichiz'' at the Reuters Retail Summit in New York June 21, 2006. REUTERS/Meredith Davenport

LOS ANGELES (Reuters) - A federal judge in California has ordered the chiefs of Mattel Inc MAT.N and MGA Entertainment Inc into talks aimed at settling a copyright dispute over MGA's Bratz doll franchise.

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In a September 2 order, U.S. District Judge Stephen Larson stayed the case until September 19 so the rival toymakers can try to work out how much in damages MGA owes Mattel and which company has rights to the $1 billion-plus doll franchise.

A jury in Riverside, California gave Mattel all but four of the original drawings upon which the first Bratz dolls were based, and up to $100 million in damages and lost profits.

Because the damages relating to MGA's infringement on the drawings was just $10 million and the jury asked if it could find that only the first generation of dolls infringed, MGA says it can still sell the dolls. MGA also contends the damages amount should be reduced.

Mattel said in a court filing, however, that the court clerk received an email from a juror who confirmed that the panel "intended to award Mattel total damages of more than $100 million."

The judge ordered MGA CEO Isaac Larian and Mattel Chairman and CEO Bob Eckert "to make themselves available, at a mutually agreement time," to meet with their legal teams and a mediator "to discuss a global resolution of the matter."

Mattel sued former Barbie designer and Bratz creator Carter Bryant in 2004 -- following the success of Bratz -- claiming he had illegally sold Bratz concept drawings to MGA while still under contract to Mattel.

Mattel accused MGA in the same lawsuit of interfering in its contract with Bryant by secretly buying the drawings, and of infringing on those drawings by making Bratz dolls.

At trial, Mattel had asked the jury to award it more than $2 billion in damages and lost profits, plus punitive damages.

The judge set a November 10 hearing in the case.

Verdicts, and damage awards, are not considered legally final until approved by a judge. (Reporting by Gina Keating; editing by Carol Bishopric)



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