Bratz doll recall placed on hold

MGA Entertainment Inc. has won a stay of the court-ordered recall of its Bratz dolls that were found to infringe the copyrights of rival toy maker Mattel Inc.

“The equitable relief granted by the District Court is stayed pending further order of this court,” a three-judge panel of the U.S. Court of Appeals said in an order Thursday following oral arguments in Pasadena on MGA’s appeal of the trial verdict.

“The parties are ordered to attempt to settle the dispute through expedited participation in this court’s mediation program,” the court added.

Former U.S. District Judge Stephen Larson had ordered a recall of MGA’s dolls that was to go into effect next month. Larson’s order followed a jury verdict last year that a Mattel designer created the Bratz name and characters and secretly took the idea to MGA, based in Van Nuys.

“The court’s stay is good news for all Bratz fans and for anyone who cares about fair competition,” MGA Chief Executive Isaac Larian said in a statement. “It keeps Bratz on the shelves, allows MGA Entertainment to continue meeting consumer demand for new Bratz products, and prevents Mattel from taking control of the billion-dollar international Bratz brand built by MGA Entertainment while the court makes its final decision.”

A spokeswoman for El Segundo-based Mattel couldn’t be reached for comment.