In June 2001, MGA Entertainment launched the Bratz range of dolls, a move that would give Barbie her first serious competition in the fashion doll market. In 2004 sales figures showed that Bratz dolls were outselling Barbie dolls in the United Kingdom, although Mattel maintained that in terms of the number of dolls, clothes and accessories sold, Barbie remained the leading brand.[59] In 2005 figures showed that sales of Barbie dolls had fallen by 30% in the United States, and by 18% worldwide, with much of the drop being attributed to the popularity of Bratz dolls.[60]
In December 2006, Mattel sued MGA Entertainment for $500 million, alleging that Bratz creator Carter Bryant was working for Mattel when he developed the idea for Bratz.[61] On July 17, 2008, a federal jury agreed that the Bratz line was created by Carter Bryant while he was working for Mattel. The jury also ruled that MGA and its Chief Executive Officer Isaac Larian were liable for converting Mattel property for their own use and intentionally interfering with the contractual duties owed by Bryant to Mattel.[62] On August 26, the jury found that Mattel would have to be paid $100 million in damages. On December 3, 2008, U.S. District Judge Stephen Larson banned MGA from selling Bratz. He allowed the company to continue selling the dolls until the winter holiday season ended.[63][64]MGA is currently appealing against the court's ruling.[65] In August 2009, MGA introduced a range of dolls called Moxie Girlz, intended as a replacement for Bratz dolls.[66]
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