mattel inc. v. mga entertainment inc

CHENNAI3rd Floor, ‘Creative Enclave’,

148-150, Luz Church Road,Mylapore,

Chennai - 600 004.Tel: +91 - 44 - 2498 4821

BANGALORE Suite 920, Level 9,

Raheja Towers,26-27, M G Road,

Bangalore - 560 001.Tel: +91 - 80 - 6546 2400

COIMBATORE#1533, Trichy Road,

Coimbatore – 641018.Tel: +91 - 422 - 6552921

HYDERABADSuite 132 & 133,

Level 1, Midtown, Road No 1, Banjara Hills,

Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]

WEBSITEwww.altacit.com

Mattel inc

MGA entertainment inc. Vallabie. H. S

12th August, 2016



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


Barbie was the unrivaled queen of the fashion

doll market throughout the 20th Century. Barbie was produced by Mattel.

In 2001, Bratz dolls were introduced captioned “The girls with passion for fashion” because the Bratz dolls had a spunk of attitude unlike the urban, multi ethnic Barbie dolls. Bratz then became an overnight success.

It was found that the man behind the Bratz dolls was Bryant, a former employee of Mattel who worked in the Barbie collectables department who used to style high end Barbie hair.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


It was found that in August 2000, while Bryant was still in employment with Mattel, shared his idea of Bratz line of dolls to two of the employees of MGA Entertainment Inc (Mattels competitor)Being called by the CEO of MGA Entertainment Bryant brought with him some sketches and crude dummy constructed out of Barbie body and kens bootsBryants drawings included the Zoe, lyoe, hallidae and Jade dolls, which made to market as Cloe, Yasmin, Sasha and Jade. The first generation of Bratz dolls.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


Bryant signed a consulting agreement with MGA on Oct 4, 2000 dated Sept 18, 2000.

While still serving the two weeks serving period with Mattel.Bryant was secretly involved with the bratz dolls, which was eventually found out by Mattel.

Hence then, a flurry of lawsuits consolidated in the federal District Court.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


MATTELS CLAIMS” That Bryant violated his agreement by going to MGA

with his ideas and not revealing the same to Mattel. Mattel claimed the rightful ownership of Bratz and Jade

as it was their idea. The Judgment was passed in favor of Mattel and

awarded a compensation of $10 million to Mattel, in spite of their claim for $ 1 billion.

Further, the District Court entering an equitable relief with the judge, imposed a constructive trust over all trademarks transferring all Bratz and Bratz branded products from MGA to Mattel. Also prohibiting MGA to market any product with Bratz title.

As to Copyright, District court issued injunction prohibiting MGA from producing or marketing every Bratz female fashion dolls and its subsequent versions.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


- After the judgment in favor of Barbie, Bratz appeal - A constructive trust is an equitable remedy that compels the

transfer of wrongfully held property to its rightful owner. - Firstly it is to be determined about Bryant's action was inside or

outside the scope of his employment. His employment terms reads as follows

I agree to communicate to the Company as promptly and fully as practicable all inventions (as defined below) conceived or reduced to practice by me (alone or jointly by others) at any time during my employment by the Company. I hereby assign to the Company ․ all my right, title and interest in such inventions, and all my right, title and interest in any patents, copyrights, patent applications or copyright applications based thereon.” (Emphasis added.) The contract specifies that “the term ‘inventions' includes, but is not limited to, all discoveries, improvements, processes, developments, designs, know-how, data computer programs and formulae, whether patentable or unpatentable.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


Here what was to be determined was whether the work

outside office hours included within the scope of his due course of employment.

Another question was whether the further effort of MGA also be taken away on account of its initial infringement, that is, different versions and modifications were purely done by MGA with its sweat and time. It is established in the law of equity that, a drop of blood shouldn’t be removed while claiming the pound of flesh.

Mattel argued that MGA's Bratz dolls infringed its copyrights in the sketches and sculpt. To win its copyright claim, Mattel had to establish three things. First, Mattel had to prove that it owned copyrights in the sketches and sculpt. Second, it had to show that MGA had access to the sketches and sculpt .Third, it had to establish that MGA's dolls infringe the sketches and sculpt



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


Mattel's evidence does not establish the copying of original elements.

The features of the Bratz dolls were not similar to that of Barbie.

Secondly, Mattel claims that the Bratz fashion doll concept is a trade secret, to which Mattel claims ownership under the assignment clause of the Inventions Agreement. But to counter, MGA argues that, even assuming Bryant's Inventions Agreement assigned to Mattel some right, title, and interest in the idea for the Bratz fashion doll concept, Bryant's disclosure and MGA's acquisition and use of those doll names did not constitute misappropriation because a doll concept and doll names are not trade secrets.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


The judgment was given in favor of MGA after much a debate for the following reasons:

Mattel cannot establish that it suffered any concrete financial loss as a result of the deprivation of its use of the Bratz works.

Mattel’s arguments of unfair trade practice was not justified because, doll market was not something that was uncommon and that it affects the competition.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


However, the jury found that MGA and its CEO had intentionally interfered with Mattel's contractual relations with Mr. Bryant, and it awarded Mattel US$10,000.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


However, Mattel unhappy with the

Judgment tries to pursue the case.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]




Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400


Coimbatore – 641018.Tel: +91 - 422 - 6552921



Hyderabad - 500034. Tel: +91 - 40 - 6050 6009

[email protected]


DISCLAIMER

Any copyrighted material in this presentation is used in fair use for the purpose of study, review or critical analysis only, and will be removed at the request of the copyright owner(s).

mattel inc. v. mga entertainment inc

Law