The news media, legal eagles and Wall Street all seem to agree that the recent $100 million jury verdict in favor of Mattel, Inc., the maker of Barbie, against Bratz doll maker MGA Entertainment represents only a symbolic victory. That’s because the amount the world’s biggest toymaker won in the case is so much less than the $2 billion in damages it sought.
But while the scale of Mattel’s victory remains the subject of debate, a larger question still looms: Can MGA continue to make and market its saucy, urban-influenced dolls? And if so, must it pay Mattel royalties? Mattel attorneys say they plan to force an answer to these questions with an injunction they will file sometime this month.
At the heart of the issue are the first sketches for Bratz dolls penned by designer Carter Bryant while he worked at Mattel under an exclusivity deal with the company. If you haven’t seen a Bratz doll, picture a Barbie doll but with a provocative twist that includes a larger head, swollen lips and almond-shaped eyes framed with blue eye shadow. Since the newer doll was introduced four years ago, its popularity has skyrocketed – with annual sales topping $1 billion. Meanwhile, Barbie dolls have experienced a decline in market share.
Mattel attorney Michael Zeller said his client will likely argue for a blanket ban on the MGA dolls when court resumes later this month – and that’s the key to this 21st Century “Valley of the Dolls” drama. Should Mattel gain rights to Bratz, it could opt to sell the more risqué product and enjoy the upswing in sales MGA has experienced in recent years. Or it could allow Bratz to continue to sell the line and take its cut of the profits. Mattel’s top priority, however, is to ensure that Barbie remains the dominant brand in the market with the toymaker’s All-American reputation intact.
As I told Reuters in an interview about Mattel’s next move, “they need to really guard the brand very, very carefully, and need to be careful that parents don’t perceive their line of dolls as too edgy.” Stopping Bratz and protecting the Barbie brand is what this litigation is really all about.
Gene Grabowski, Senior Vice President of Levick Strategic Communications and manager of the firm’s Crisis, Litigation, Liability, and Recall Practice Group, is a distinguished crisis communications counselor who leads high-profile accounts for major law firms, Fortune 500 companies, trade associations, and government agencies. For his work during the spinach E. coli crisis, the industry-wide pet food recalls, and the lead paint toy recalls, Mr. Grabowski was honored by PRNews as their Crisis Manager of the Year for 2007.
