A federal appeals court has thrown out U.S. District Judge Stephen Larson's decision to grant Mattel ownership of the Bratz dolls.
"It is not equitable to transfer this billion dollar brand — the value of which is overwhelmingly the result of MGA's legitimate efforts — because it may have started with two misappropriated names," said Chief Judge Alex Kozinski.
He added that the case, which included a $100 million verdict for Mattel in 2008, may require a new trial.
Mattel is looking forward to a "full trial" where they can address their claims against MGA Entertainment Inc.
"Unlike the relatively demure Barbie, the urban, multi-ethnic and trendy Bratz dolls have attitude," Kozinski added. "America thrives on competition; Barbie, the all-American girl, will too."