MGA Entertainment, makers of the popular Bratz dolls, will hand over $13.2 million to video game company Ubisoft Entertainment, after an arbitrator ruled that Ubisoft had not violated the
Bratz trademark but MGA had violated a contract between the two companies.
Ubisoft had obtained a license from MGA for the right to make video games based on the Bratz franchise in the spring of 2002.
But in 2003, MGA purported to terminate the license under the claim that Ubisoft had failed to release a “substantial number” of the games in Europe, which was one of the provisions in the licensing agreement.
Ubisoft argued that it had not breached the license and continued to make Bratz video games. MGA promptly sued, alleging copyright infringement for producing the Bratz games without a license and breach of contract.
Ubisoft counter-sued for invalid termination of the licensing agreement. The case then went to arbitration.
Last year, the arbitrator decided that Ubisoft had been correct and the termination was wrongful. It awarded Ubisoft the $13.2 million in lost profits, attorneys' fees and interest.
Unsatisfied with the verdict, MGA then challenged the award in a Los Angeles county court. However, that motion was later denied. MGA agreed to pay the award in late-December 2007. The judgment order was entered on Feb. 8.
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