Bratz and Barbie legal catfight resumes

SANTA ANA, Calif. -- It's Round 2 in the knockdown legal catfight between toy giant Mattel Inc. and bitter rival MGA Entertainment Inc. over the right to make and market Bratz dolls -- the sassy, street-wise line that flew off the shelves when it was introduced in 2001 and gave Barbie a run for her money.

Two years ago, a federal jury awarded Mattel $100 million and found that Bratz designer Carter Bryant had developed the concept for the Bratz dolls while working for Mattel. An appeals court later overturned the verdict, and the case was sent back for a retrial.

Now the archrivals are set to present opening statements Tuesday involving Mattel's original copyright infringement allegations along with MGA's counterclaim of unfair business practices and Mattel's accusation of theft of trade secrets by its competitor.

Jurors will also be asked to determine the scope of an invention agreement signed by Carter at Mattel before he went to work for MGA.

The array of complex legal issues facing jurors is sure to create fireworks during a trial that is critical to Mattel and MGA, said Jack Lerner, a professor at USC Gould School of Law who specializes in intellectual property and technology issues and has closely followed the case.

The run-up to the trial has been nasty, with MGA claiming in court papers that Mattel sent gumshoes to trade shows where MGA was displaying new products, and Mattel alleging MGA routinely poached top staffers and encouraged them to bring along secrets from the Barbie-maker's vaults.

MGA, a much smaller company, has spent $150 million on legal fees and has been forced to lay off more than 300 employees while defending the Bratz brand, which debuted to rave reviews. Mattel has not disclosed its legal costs.