Mattel gets $100 mln in Bratz case, wanted billions

By Syantani Chatterjee

RIVERSIDE, Calif (Reuters) - A California jury on Tuesday awarded Mattel Inc $100 million in damages in the copyright infringement case it brought against MGA Entertainment Inc over the Bratz doll franchise, which has steadily taken market share from Mattel's iconic Barbie doll.

News of the award, which fell far short of the more than $2 billion in damages that Mattel had asked the jury to award, sent the toy maker's shares down 3.7 percent in after-hours trade.

The issue of whether MGA can continue to sell its flagship product will be decided at a later hearing by U.S. District Judge Stephen Larson, who presided over the three-month trial.

The trial has been closely watched because a different outcome could have put MGA into dire financial straits and handed control of its $1 billion-plus Bratz franchise to Mattel.

In its lawsuit, Mattel contended it owned rights to the drawings and models upon which the big-headed, pouty-lipped Bratz dolls were based because former Barbie designer Carter Bryant made them while he was under contract to Mattel.

Bryant settled claims against him for undisclosed terms before the trial began in late May.

In the first phase of the trial, the jury awarded all but four of the dozens of drawings and models Bryant made of the four Bratz prototypes to Mattel. In the damages phase, jurors were tasked with deciding whether Bratz dolls and accessories infringed on those drawings and models.

The panel found that while MGA Chief Executive Isaac Larian and his company were liable for copyright infringement, the infringement was not willful, and the jury awarded no punitive damages.

Mattel Chairman and Chief Executive Robert Eckert said in a statement the company was "pleased that the jury agreed with Mattel that what MGA did was wrong and that damages were awarded."

MGA attorneys said they would argue that the jury meant the damages to total just $40 million when it awarded $30 million against Larian and MGA on each of three counts of interfering in Bryant's contract with Mattel, plus $10 million for copyright infringement.

Larson will determine the total damages award at a later hearing, and will also decide whether MGA must pay Mattel a royalty to continue making and selling Bratz.

Larian told Reuters outside the courtroom that MGA "(has) been selling (Bratz) and is going to continue selling it."

"We are going to go 200 percent toward positive things like creativity and marketing instead of negative things like sitting in front of lawyers ... and being called a thief," Larian said.

He also said MGA would appeal the case.

Shares of Mattel were down 1.4 percent at $19.95 in after-hours trade on Tuesday.

(Editing by Phil Berlowitz)