9th Cir. Rolls Back Trade Secret Damages In Bratz Case; Mattel Still Owes Fees, Costs

A counterclaim of trade secret misappropriation, asserted against the maker of Barbie dolls by the maker of Bratz dolls, was not compulsory and therefore never should have been submitted to the jury in the lengthy dispute between the two toy manufacturers, the U.S. Court of Appeals for the Ninth Circuit ruled Jan. 24 (Mattel Inc. v. MGA Entertainment Inc., 9th Cir., 11-56357, 1/24/13). The appeals court accordingly vacated the $172 million judgment against Mattel Inc. for its alleged theft of trade secrets.

The court, however, upheld an award of more than $137 million in attorneys’ fees and costs ...