Mattel accused of spying

They're baaaaack - MGA Entertainment, maker of the Bratz dolls, is firing first in the latest phase of what seems like a never-ending battle with Mattel. In a filing in federal court, Van Nuys-based MGA is accusing El Segundo-based Mattel of infiltrating private showrooms to steal product ideas, price lists and ad strategies. The filing comes several weeks after an appeals court overturned a trial judge's 2008 ruling that the Bratz franchise should be turned over to Mattel. That decision came after a federal jury ordered MGA to pay Mattel $100 million, finding that a Mattel designer had given Bratz designs to MGA. It now appears as if the case will be retried early next year.MGA's allegations are pretty eye-popping. From Reuters:

According to MGA's latest filing, Mattel employees from its so-called "market intelligence" group made regular trips to toy fairs across the globe and gained entry with false credentials. They signed nondisclosure agreements which they had no intention of honoring, MGA alleges. The Mattel employees used spy cameras paid for by the company, the filing said, and information on the competition was presented to hundreds of Mattel employees in an auditorium at its corporate headquarters. "The methods of Mattel's spies were well known throughout the company, including by its top executives," the filing said. "The market intelligence group openly discussed its tactics."

Whether MGA can prove any of that is another matter. The company is relying largely on a deposition from a former Mattel employee. Meantime, it looks as if MGA can continue to distribute the Bratz dolls through the holiday season.