Bratz lesson
Wednesday, May 6th, 2009Bratz dolls are the brain child of toy designer Carter Bryant and are made by MGA Entertainment. A big hit with the pre-teen set, in some parts of the world their popularity has eclipsed Mattel’s Barbie doll as the number one selling fashionista doll. The business rivalry might have ended there except for the fact that Carter Bryant was once employed by Mattel.
Bratz Doll Funk and Glow Cloe
In the lawsuit that followed, Mattel claimed Mr. Bryant’s Bratz design work began while he was still employed at Mattel. The company further claimed that under the terms of his employment agreement, all doll designs made by Bryant during his employment at Mattel, including the Bratz designs, belonged to Mattel. A jury agreed and awarded Mattel $100 million in damages. The court also granted a permanent injunction that was later modified to allow MGA to sell through its inventory until the end of 2009. More recently, the parties have begun settlement discussions.
The Bratz lesson here: the value of enforcable contract rights. Without a contract spelling out what kind of inventions, creations, or designs belonged to the company it would have been much harder for Mattel to achieve such a decisive victory or to put itself in such a favorable bargaining position. Their legal literacy gave them legal leverage.
