Richard Gottlieb

Barbie and Bratz go to court

In case you think you work in a quiet little industry, think again. Mattel and MGA are going to trail this week in a contest over who should own the rights to Bratz. 

We all know, of course, that MGA owns Bratz and,  with this brand , has  accomplished what was considered impossible: Taken serious market share from Barbie.  As a result, Mattel is worried!   

How worried are they?  In an excellent Wall Street Journal article, “Brawl Over Doll is Heading to Trial,” reporter Nicholas Casey tells us that, in fact, Mattel was so concerned by the success of Bratz that four years ago it issued a call to arms. “The House is on Fire!" said an internal presentation on the decline of its iconic Barbie doll franchise. Market share was dropping at a "chilling rate," the presentation said. Barbie needed to be more "aggressive, revolutionary, and ruthless." 

As a result, it appears that Mattel decided that if they couldn't beat Bratz on the shelf they would do it in court. In fact, according to Casey, Mattel is accusing MGA of “stealing” the Bratz line from them and asking the court to turn Bratz and its $500 million per year business over to Mattel.  

In another Wall Street Journal article, "Barbie battles Bratz as toymakers go to trial," author Dan Slater explains that the basis for Mattel’s complaint is that the creator of Bratz, Carter Bryant, created the concept while an employee of Mattel. Bryant has subsequently settled out of court with Mattel but needless to say MGA is insisting that he was not an employee when it occurred. In fact, MGA has countersued Mattel with a claim that Mattel “…altered the design of its own dolls to more closely resemble the Bratz line and used its sway with retailers to stifle competition.”

If you are Isaac Larian, MGA’s founder, you have to feel under siege, and with good reason. According to the Wall Street Journal, Mattel has used everything from private investigators to forensic experts. There are few things in life that are potentially catastrophic but for MGA this is one of them. They can’t lose this thing. The alternative is devastating.

As fascinating as this trial is, I think that the press and the Wall Street Journal have missed the real story. That will be in my next blog.

Posted by Richard Gottlieb on May 26, 2008 | Comments (0)