Ruling could mean end to pouty-lipped Bratz

Posted on December 13, 2008 

Ruling could mean end to pouty-lipped Bratz

Pouty-lipped Bratz will stay on store shelves until after the holidays, but their fate after that — and that of their parent, MGA Entertainment Inc. — was uncertain Thursday after a federal court ruling banning MGA from making the saucy Barbie alternative.

MGA is appealing the ruling which — if upheld — is a severe blow for the company and an equal boon for Barbie maker Mattel Inc., which has been duking it out with MGA over Bratz for four years.

“In the most dire scenario, MGA can’t sell Bratz at all and a humongous chunk of their business disappears,” said Needham & Co. analyst Sean McGowan. “But it’s likely they will work out a way for MGA to stay in business but Mattel to profit.”

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