MGA Entertainment Inc. filed an emergency appeal late Tuesday asking a U.S. appeals court to halt the transfer of its Bratz fashion doll line to toymaker Mattel Inc.
In an appeal filed with the Ninth Circuit Court of Appeals, the Van Nuys-based toymaker requests the court stay an injunction granted by U.S. District Court Stephen Larson that orders MGA to stop selling the widely popular Bratz dolls at the end of the 2009 holiday season. Larson also ordered MGA to hand over to El Segundo rival Mattel portions of the Bratz intellectual property that will help Mattel prepare its own Bratz line for the Spring 2010 sales season.
In its appeal, MGA argues that Larson? orders make no sense from a practical or legal perspective and contends that an emergency stay should be granted ?ecause of the risk of irreparable harm to MGA and the public and the multiple legal errors committed by the District Court.?p>Mattel declined to comment on the pending appeal.
In an order issued May 21, Larson scaled back the role of Beverly Hills attorney Patrick Fraioli, who was appointed temporary receiver last month, and converted him to monitor. Fraioli was made temporary receiver in response to Mattel? concerns that MGA Chief Executive Isaac Larian appeared to be hiding the company's assets from creditors.
In his role as monitor, Fraioli will control an account designated for all net profits from the sale of any existing inventory of Bratz dolls and any new dolls made through this year.
Larson is urging MGA and Mattel to settle the longstanding legal dispute and scheduled a settlement conference for June 1 with a court-appointed mediator. Larson has said that he would preside over a settlement hearing himself if next week? conference doesn? prove fruitful.
A federal jury decided last year that a former Mattel doll designer created the Bratz name and characters for MGA while still working for Mattel. Larson last month declined MGA's request to reduce the $100 million award the jury granted to Mattel.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Update: Judge Ends Temporary Receivership Over MGA
- MGA Dealt Blow in Bratz Battle
- Receiver Starts Dressing Up Maker of Bratz
- Progress Made in Bratz Talks
- Update: Mattel Stock Rallies Following Court Victory
- MGA Celebrates Despite Uncertain Future
- Bratz Transfer Put on Hold
- MGA Files for Stay in Bratz Ruling