RIVERSIDE, Calif., July 18 (UPI) -- A federal jury in Riverside, Calif., found Bratz dolls were created by a Mattel Inc. contracted designer, possibly costing the doll's maker millions.
The jury ruled that MGA Entertainment Inc. and its owner Isaac Larian played an active role in helping designer Carter Bryant break his contract with Mattel, the Los Angeles Times reported.
The second phase of the trial will determine monetary damages for the contract breach that resulted in MGA producing the doll with the bare midriff that industry analysts say reaps as much as $2 billion in annual sales.
"This important principle has been confirmed by the jury. What MGA did was wrong," Mattel's Chief Executive Officer Robert Eckert said in a statement.
The two parties could reach an out-of-court settlement but Larian rejected that idea, the Times reported.
"I need to sleep good at night," Larian said. "I can't be in bed with them."
Bryant, who has made $30 million in royalties from Bratz sales, settled out of court with Mattel in May for an undisclosed amount, the Times reported.
