Super Spy Barbie? Bratz Maker MGA Accuses Mattel of Toy Espionage

MGA Entertainment, maker of the popular line of Bratz dolls, threw another punch at Mattel (MAT) this week in their long-running fight, alleging the owner of Barbie has engaged in a long-standing practice of falsifying credentials to spy on competitors at toy fairs around the world, The Wall Street Journal reports.

The allegations mark just the latest round in the knockdown, drag-out copyright infringement lawsuit the companies have been embroiled in over the past six years. At issue: Who has ownership rights to the Bratz dolls, which have developed a strong following among tween girls.

MGA's spying allegations were part of its court filings late Monday, as the parties prepare to head back to federal court for a new trial on Jan. 11. Last month, a federal appeals court overturned a lower court's ruling in MGA's favor, finding that it's "not equitable to transfer this billion dollar [Bratz] brand -- the value of which is overwhelmingly the result of MGA's legitimate efforts --" to Mattel.

Previously, a lower court ruled in favor of Mattel, which alleged the initial Bratz designs were created by a Barbie clothing designer while he was under contract, before he was hired away by MGA. The lower court judge agreed, and ruled that the Bratz line therefore belonged to Mattel.

After the lower court's ruling, MGA was forced to pull its line of Bratz dolls from store shelves. But girls appear to have gotten a second life, albeit more subdued, as Moxie Girls.

Intelligence Gathering Was Allegedly No Game


MGA now claims Mattel's market intelligence group doctored up credentials at toy fairs to gain access to private showrooms. Once inside, MGA alleges that Mattel employees would secretly photograph new products and gather information on pricing and marketing strategies shared with retailers and distributors, according to The Wall Street Journal.

After allegedly gleaning the information, MGA claims Mattel would assemble intelligence reports to be shared throughout the company, and house the information at its corporate headquarters in a ninth-floor library.

MGA, in court documents cited by The Wall Street Journal, surmised Mattel engaged in this alleged behavior to:
maintain its unlawful competitive advantage in the toy industry, its vigorously promoted reputation as an ethical company, and most importantly of all from MGA's perspective, its ability to deceive a federal judge into believing that Mattel was good and MGA was evil.
Ironically, that debate is also played out in households across America, where young adolescent girls clamor for the Bratz dolls and parents are left with a decision whether to indulge them by buying the scantily dressed dolls. In some circles, parents shun Bratz and forbid their daughters from playing with them even when visiting other children's homes.

Big money is at stake for MGA and Mattel. Since its debut in 2001, the Bratz line has cut heavily into Barbie's market share among tweens, outselling the comparatively wholesome-looking icon in Britain in 2004, according to a report in the British newspaper The Telegraph.

Increase your money and finance knowledge from home

Reading a Stock Quote

Learn to read the ingredients of a stock.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum

3 Comments

Filter by:
VICTORIA_!_JENNY

WHY does Mattel think it has to spy on the 'Bratz' dolls, of all toys! Bratz dolls heads are far too big for their bodies, Barbie & her friends are more realistic looking! The very word "Bratz", (or 'brats'), means spoilt rotten -- something NO parent wants their children to be! (Barbie -- despite all the fantasy -- really wants to be a down-to-earth veterinarian, for goodness sakes!) Do the Bratz dolls have boyfriends? (I just know their name, Bratz....haven't looked into anything else on Barbie's rivals). I think one of the WORST things Mattel ever did was to take Ken out of Barbie's life...in this age of single-motherhood-by-choice, little girls NEED at least ONE traditional family-togetherness model toy to look up to....so they, too, can have a CHOICE!) Do Bratz dolls have a designer, collector line for adults...that can be traded like other collectibles...and bring moms and daughters together, each with her own kind of similar doll? Bratz dolls are LOSERS, all the way! (The only good thing I EVER found from Bratz was a toy piano keyboard. But I'm sure Barbie & her friends at Mattel can come up with a better one!) Why study Losers, Mattel, when Barbie is the clear winnner --in just about every category? She's beautiful, she's ambitious, she has a little sister and great friends....she's GLAMOUROUS -- the Bratz dolls certainly aren't! As I see it, Barbie is for girls, (and Ken is for Boys), who want to MAKE something of themselves, who have dreams and want to MAKE them come true! Bratz dolls are for children who want to stay in the lower-socio-economic group forever, and who take joy in being "rebels without a cause". BARBIE IS BEST! KEN IS KEEN! BRATZ.....are just brats!

August 19 2010 at 4:36 PM Report abuse rate up rate down Reply
legalcld

Let me get this right, an iranian doll maker is accusing Mattel a US doll maker of spying on them?? Barbie has been around for 50 or so years, and the bratz dolls have been around for 6 years or so?? So who's spying on who?? If I were Mattel, I'd be suing MGA for making a knock off doll from their original Barbie doll!!

August 19 2010 at 9:23 AM Report abuse rate up rate down Reply
Joe

It's only a doll and current pop stars are more of an influence on your kids than a doll.

August 19 2010 at 6:53 AM Report abuse rate up rate down Reply