MGA Ordered by Court to Cease Bratz Line

Last week, MGA Entertainment lost its bid to reduce the $100 million in intellectual property damages it owed to Mattel Inc. per a previous court order and U.S. District Judge Stephen Larson appointed a temporary receiver over MGA’s Bratz assets. MGA said it is seeking an expedited appeal of this decision.

According to The Wall Street Journal, Judge Larson also lifted a stay on a previous order blocking MGA from producing Bratz dolls or using the brand name, meaning the company must immediately stop manufacturing and licensing the property (although retailers who had previously purchased the dolls may continue selling it through the end of the year). However, MGA has issued a statement noting it intends to move forward with its preparations to show and sell Spring ’10 products to customers.

Temporary receiver Patrick A. Fraioli, a partner at Beverly Hills, Calif.-based law firm Ervin Cohen & Jessup, said the plan is to preserve MGA’s assets and avoid disruption for those doing regular business with the company and its other brands, which include Little Tikes, Rescue Pets and 4-Ever Kidz. Visit www.mgae.com.

In This Issue: Earnshaw’s annual report on the growth of the industry Understanding the grandparent demographic An update on the state of e-commerce Plus: Infant and toddler fashion Coming Next Month: Preschool properties that translate into consumer products success Retailers reveal the power of accessories The sports licensing report Plus: Character-based apparel