Protecting a business idea - Bratz hit by copyright damages

Whilst not strictly about protecting a start-up’s business idea, here is a good example of a company that has fallen foul of the protection offered by copyright laws…

Mattel, perhaps the world’s leading toymaker, has been awarded significant damages in a copyright case against MGA, the maker of the rival Bratz dolls. This BBC news article has more information.

A court in California ruled that the creator of Bratz dolls, Carter Bryant, came up with the idea while he was working for Mattel, and so the idea actually belonged to his employer.

The payout is thought to be at least $40m (£22m) but Mattel, which makes Barbie, had asked for about $2bn.

To put the damages into perspective, MGA are believed to be making annual profits of around $500 on Bratz.

Barbie herself has long been in the decline phase of her product life cycle. Barbie was orginally launched in 1959 and Mattel have kept the brand strong with a compehensive collection of product extensions. However, sales are now in decline, particularly in the core US market.