Ubisoft
has obtained a $13.2m judgment against
MGA
Entertainment, the owner of Bratz dolls, after a long-running copyright and
trademark infringement dispute.
The video game publisher entered into a licensing agreement with MGA in 2002
to publish titles based on the Bratz franchise.
But MGA terminated the contract in 2003 after objecting to Ubisoft's handling
of the licence.
Ubisoft refused MGA's attempts at renegotiating the contract, saying that the
licence had been terminated without cause on pretextual grounds.
Ubisoft argued that the move was just an attempt by MGA to forcefully
renegotiate in light of the increasing popularity of the Bratz dolls.
MGA sued, and Ubisoft countersued, alleging that MGA's termination of the
licence was invalid and a breach of contract.
Ubisoft's lawyers said that MGA sought to place at issue every aspect of
Ubisoft's handling of the Bratz licence in an effort to justify its wrongful
termination.
The case was taken to the
American
Arbitration Association which ruled in favour of Ubisoft, awarding damages
for lost profits, attorney's fees and interest, and rejecting all MGA claims.
The arbitration award was confirmed by the Los Angeles Superior Court, and
MGA was ordered to pay $13.2m.
"We are thrilled with the result and feel completely vindicated," said
Ubisoft general counsel Cecile Russeil.
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