A federal court has ruled in favor of Barbie manufacturer, Mattel, and ordered MGA Entertainment Inc. to cease to produce their Bratz dolls. According to The Chicago Tribune, "The jury awarded Mattel up to $100 million in damages," after they found "that the Bratz creator developed the idea [for the popular doll] while working at Mattel." A lot of companies have iron-clad non-compete clauses inserted into their employment contracts that prevent employees from branching out into the industry on their own.
In addition to monetary damages, the verdict also requires that Bratz recalls their dolls after the holiday season.
Bratz's manufacturer is not taking the verdict lying down. The Chicago Tribune states that MGA plans to appeal on the notion that, "The Bratz empire was founded on four dolls- Jade, Sasha, Yasmin and Cloe...which [they] no longer make...The other dolls [do] not violate the law and they should be able to sell them."