*Mattel loses copyright suit

A federal court jury in Santa Ana rejected the toymaker's claims that it owned the idea for the popular Bratz dolls - and that Van Nuys-based MGA Entertainment, which makes the dolls, did not steal any trade secrets. MGA CEO Isaac Larian, who has strenuously defended his company's position against El Segundo-based Mattel, cried in court while listening to the multiple decisions.

From LAT:

Monetary damages in the case were still being read in court at 9:30 a.m. Thursday. However, it appeared Mattel would owe MGA millions of dollars. As the 28-page, 23-question verdict form was read, family members of MGA Chief Executive Isaac Larian, seated in the front row, including his wife, daughter and two sons, embraced one another, smiled and let out sighs of relief. On Mattel's side, lawyers seated in the audience looked shocked. Chief Executive Bob Eckert leaned back in his chair and rubbed his forehead with his hand.

**Update: This has been a true nightmare for Mattel. The company had initially claimed that MGA stole the concept for Bratz and went to court in 2008, claiming copyright infringement and breach of contract. That federal jury sided with Mattel, awarding the company $100 million in damages. MGA was ordered to stop making and selling Bratz products. Soon after the verdict, there were unsuccessful efforts to settle out of court, and then, out of the blue, a three-judge panel of the U.S. 9th Circuit Court of Appeals overturned the original decision. A new trial was ordered in federal court in Santa Ana - and it's made the first one look like child's play. Both sides have hurled juicy accusations at each other about the stealing of trade secrets.

Given how this case has gone, it's entirely possible that Mattel will appeal today's decision, but you do have to wonder why the toymaker has refused to give this thing up. It's not as if the Bratz dolls are still hot -- sales have been slumping for some years, and it wouldn't have been a huge revenue stream for Mattel. Perhaps it just comes down to Mattel being a very litigious company, especially when it comes to copyright issues, and it didn't want anybody to think that it could lose. I'm also guessing that this had degenerated into a kind of mano-a-mano between MGA's Larian and Mattel's Eckert - and their attorneys. Mattel shares fell sharply this morning when the verdict was announced, but the stock is only down a little over 1 percent.