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In a stunning reversal of fortune for both MGA and its lawyers at Orrick, Herrington & Sutcliffe, a federal jury in Santa Ana, Calif., sided with MGA in its long-running dispute with Mattel over the rights to the Bratz dolls.
An eight-person jury in Santa Ana, Calif., found that Mattel does not own the rights to the Bratz dolls and MGA did not steal Mattel’s trade secrets. Orrick’s team was lead by Annette Hurst and Warrington Parker. MGA was also represented by Jennifer Keller of Keller Rackauckas. Led by John Quinn, Quinn, Emanuel, Urquhart & Sullivan represented Mattel.Almost three years ago, in the first trial of this case, a jury found that MGA’s Bratz dolls infringed Mattel’s copyrights and awarded the toy maker $100 million. Los Angeles federal district judge Stephen Larson, who was then presiding over the case, issued a crippling injunction shutting down the Bratz empire, although that injunction was later stayed. MGA was represented in that trial by Skadden, Arps, Slate, Meagher & Flom. Quinn Emanuel has been Mattel’s counsel for the life of this case, which began in 2004. (You can read a feature story about this litigation from The American Lawyer’s December issue here.)Orrick then stepped in and won a huge victory for MGA when it convinced the U.S. Court of Appeals for the Ninth Circuit to throw out the verdict and injunction and order a new trial. Yet on the eve of of the retrial, MGA tried to get Orrick replaced, asserting in court filings that it lacked “full confidence” in the firm, and that Orrick’s team lacked sufficient trial experience. MGA insisted it would be “irreparably prejudiced” if it couldn’t change counsel. Santa Ana federal district court judge Judge David Carter refused to let Orrick withdraw, citing the disruption to the trial schedule.Not only did Mattel see its damages and injunction disappear, but it appears that Mattel will now owe MGA at least $88.5 million for stealing its trade secrets, according to this article from the Los Angeles Times. Lawyers for the two sides couldn’t immediately be reached for comment.
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