Competition from Bratz dolls




In June 2001, MGA Entertainment launched the Bratz series of dolls, a move that gave Barbie her first serious competition in the fashion doll market. In 2004, sales figures showed that Bratz dolls were outselling Barbie dolls in the United Kingdom, although Mattel maintained that in terms of the number of dolls, clothes, and accessories sold, Barbie remained the leading brand. In 2005, figures showed that sales of Barbie dolls had fallen by 30% in the United States, and by 18% worldwide, with much of the drop being attributed to the popularity of Bratz dolls.

In December 2006, Mattel sued MGA Entertainment for $500 million, alleging that Bratz creator Carter Bryant was working for Mattel when he developed the idea for Bratz. On July 17, 2008, a federal jury agreed that the Bratz line was created by Carter Bryant while he was working for Mattel and that MGA and its Chief Executive Officer Isaac Larian were liable for converting Mattel property for their own use and intentionally interfering with the contractual duties owed by Bryant to Mattel. On August 26, the jury found that Mattel would have to be paid $100 million in damages. On December 3, 2008, U.S. District Judge Stephen Larson banned MGA from selling Bratz. He allowed the company to continue selling the dolls until the winter holiday season ended. On appeal, a stay was granted by the U.S. Court of Appeals for the Ninth Circuit; the Court also overturned the District Court's original ruling for Mattel, where MGA Entertainment was ordered to forfeit the entire Bratz brand.

Mattel Inc. and MGA Entertainment Inc. returned to court on January 18, 2011 to renew their battle over who owns Bratz, which this time includes accusations from both companies that the other side stole trade secrets. On April 21, 2011, a federal jury returned a verdict supporting MGA. On August 5, 2011, Mattel was also ordered to pay MGA $310 million for attorney fees, stealing trade secrets, and false claims rather than the $88.5 million issued in April.

In August 2009, MGA introduced a range of dolls called Moxie Girlz, intended as a replacement for Bratz dolls.

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