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** FILE ** This photograph released by MGA Entertainment Feb. 10, 2006 shows the "Feelin' Pretty" Bratz shown for the American International Toy Fair in New York. Barbie-maker Mattel Inc. dropped its lawsuit against a former employee over the design of the rival Bratz dolls, a lawyer for the giant toymaker said Monday, May 19, 2008.
** FILE ** This photograph released by MGA Entertainment Feb. 10, 2006 shows the “Feelin’ Pretty” Bratz shown for the American International Toy Fair in New York. Barbie-maker Mattel Inc. dropped its lawsuit against a former employee over the design of the rival Bratz dolls, a lawyer for the giant toymaker said Monday, May 19, 2008.
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SAN FRANCISCO — Mattel, which won the rights to rival MGA Entertainment’s Bratz dolls after a copyright trial, had them taken away by an appeals court.

The U.S. Court of Appeals overturned a December 2008 order that gave Mattel the rights to most of MGA’s Bratz products after a jury found the designer who created the dolls was working at Mattel when he conceived the idea and names and made the initial drawings.

“Even assuming that MGA took some ideas wrongfully, it added tremendous value by turning the ideas into products and, eventually, a popular and highly profitable brand,” the appellate panel said Thursday.

The court said the entire case probably will need to be retried. Bloomberg News

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