Mattel prevails in Bratz copyright trial

By Gina Keating

RIVERSIDE, California (Reuters) - Mattel Inc MAT.N won a nearly complete victory on Thursday in its federal copyright infringement case against rival MGA Entertainment Inc over which toymaker owns the original drawings for the $1 billion-plus Bratz fashion doll franchise.

The decision by a California jury could have far-reaching implications for both companies as well as the toy industry if Mattel wins the large damages award it is seeking as well as an injunction to stop MGA from selling Bratz dolls, the main rival to its Barbie doll franchise.

The federal jury found the creator of the multi-ethnic, big-headed dolls, Carter Bryant, created their characters and the name while he was under contract as a Barbie designer at Mattel.

Mattel shares gained 4.4 percent in after-hours trade following the verdict.

Mattel Chairman and Chief Executive Bob Eckert, who testified at the trial, said it had pursued the case "as a matter of principle" and that the verdict was "a victory not only for Mattel but for all those who believe in fair play."

"While the case has been very complicated, the underlying principle has been a simple one: you shouldn't take what isn't yours," Eckert said in a statement.

The decision put Mattel in commanding position going into the damages phase of the trial, in which the jury will determine if the Bratz doll infringes on the drawings Mattel now owns and whether MGA owes Mattel damages as a result. That phase begins July 23.

Other than the four drawings which Bryant testified that he made in a notebook while on an eight-month hiatus from Mattel in 1998, privately held MGA lost the rights to all drawings and "sculpts" of the Bratz.