The decision by U.S. District Judge David Carter on Thursday is the latest in a long running legal battle between the two companies over who owns the once-billion dollar line of pouty-lipped Bratz dolls. Carter also awarded MGA over $300 million in damages, attorney's fees and costs.
After a retrial, a U.S. jury decided in April that MGA is the rightful owner of the Bratz line. It awarded roughly $85 million in damages.
Carter rejected Mattel's request for a new trial on Thursday. He also increased MGA's damages award to $170 million, along with over $105 million in attorney's fees and over $31 million in costs.
Mattel spokeswoman Heather Wilson said the company is disappointed by the ruling and is evaluating its next steps.
"Additionally, we remain committed to finding a reasonable resolution to the litigation, and are focused on our primary goal -- to make and sell great toys," Wilson said in an email.
MGA President Isaac Larian said the ruling is "a step in the right direction to right the wrongs" Mattel has inflicted on MGA. In a press release, Larian said MGA would continue to pursue antitrust claims against Mattel.
The case is Mattel Inc. v. MGA Entertainment Inc., U.S. District Court, Central District of California, No. 04-9049.
For the MGA parties: Annette Hurst, Warrington Parker, William Molinski and Thomas McConville of Orrick, Herrington & Sutcliffe.
For Mattell: John Quinn and Michael Zeller of Quinn Emanuel Urqhart & Sullivan.