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Mattel Loses Appeal Ruling Over Ownership of MGA’s Bratz Dolls

Mattel Inc. must retry its claims to MGA Entertainment Inc.’s Bratz dolls after an appeals court overturned a judge’s finding that Mattel owned the ideas and work of a former employee who first thought of the dolls.

The ruling may make it more difficult for corporations to claim ownership of their employees’ ideas, particularly if they are conceived in a private context, said Carole Handler, an intellectual property lawyer with Lathrop and Gage LLP in Los Angeles who isn’t involved in the case.