Mattel's Bratz Lawsuit Rejected by Federal Jury

EL SEGUNDO, Calif. ( TheStreet) -- Mattel ( MAT) is losing the battle against privately-held MGA Entertainment over the rights to the popular Bratz dolls.

Mattel alleged copyright infringement claims against privately-held MGA Entertainment over the Bratz Dolls -- which debuted in 2001, and have sold at least $3.3 billion worth of products, generating more than $292 million in profits -- but a federal court jury rejected Mattel's allegations.

The jury awarded Mattel no damages, finding that it did not successfully prove that it owned the idea, nor any of the sketches that led to the development of the Bratz line of dolls.

MGA also did not steal trade secrets, the jury found.

In a Santa Ana, Calif., court Thursday, MGA CEO Isaac Larian "openly cried," according to reports, as the 28-page verdict was read.

The claims alleged that Bratz designer Carter Bryant conceived of the Bratz doll idea while working at Mattel, and later implemented it when working for MGA.

A federal jury awarded Mattel $100 million two years ago, finding that Bryant did develop the Bratz idea while working for Mattel, but the verdict was overturned and the case sent back for a retrial.

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