Property, intangible

As it last stood, Mattel had moved for an order on declaratory judgment that it owned all right, title and interest in the Bratz dolls created while the designer, Carter Bryant, worked at Mattel; for a permanent injunction that MGA cease manufacturing dolls; and that the court impose a constructive trust and transfer the “Bratz” and “Jade” marks to Mattel. Mattel scored huge, 3 and 0. On the motion for declaratory judgment:

The Court hereby DECLARES that Mattel owns all right, title and interest, including any and all copyright rights, in and to the Bratz-related works, ideas, and concepts that Carter Bryant conceived or created while employed by Mattel, as found by the jury in this case, including the idea for the name “Bratz” and the idea for the “Bratz” characters . . . .  In addition, the Court hereby ORDERS that all copyright registrations MGA has obtained in and for the Bratz works . . . are subject to a constructive trust in favor of Mattel and have been held by MGA for Mattel’s benefit. Mattel is the beneficial owner of such registrations. . . .

Order here. On the motion for permanent injunction:

MGA, MGA Hong Kong, and Larian, along with their respective officers, directors, principals, agents, representatives, servants, employees, affiliates, successors or assigns, and any person or entity acting on their behalf or in concert or participation with them, are hereby PERMANENTLY ENJOINED from manufacturing, procuring the manufacture of, making, producing, reproducing, copying, distributing, transferring, displaying, marketing, advertising, shipping, importing, exporting, licensing, offering to license, selling or offering to sell . . . [a]ny doll, product, packaging or other item that embodies or depicts in whole or in part, or incorporates or uses in any manner, any of the Jade, Cloe, Yasmin and Sasha Bratz characters . . . .

At Defendants’ expense, Defendants shall deliver to Mattel’s counsel for impoundment, at such location in the Central District of California as Mattel’s counsel may direct, all dolls, products, product packaging, labels, signs, prints, dies, wrappers, receptacles and advertisements, in the direct or indirect possession, custody or control of Defendants . . . .

Defendants are hereby ORDERED to procure the return, and to withdraw and recall, from any and all channels of trade and distribution, including without limitation from retail shelves and from on-line retailers, all of the dolls and doll products . . . .

Add also an onerous reporting requirement and a requirement that a notice be posted on the MGA Entertainment home page, order here. On the trademark constructive trust:

A constructive trust in favor of Mattel on all rights to trademarks, service marks and domain names held by MGA or Larian, or any person or entity acting on their behalf or for their benefit, anywhere in the world that include the terms “Bratz” or “Jade,” including all such trademark registrations and trademark applications and the good will inhering therein, as well as all such domain name registrations, is HEREBY ORDERED and all rights therein are ORDERED transferred to Mattel.

Order here. The only good news for MGA is that, according to its press release, the orders are stayed until February 2009 pending some additional post-trial motions.

MGA statement on the orders here.

© 2008 Pamela Chestek