MGA Entertainment Ordered to Pay $71.5M in Infringement Case

MGA Entertainment Ordered to Pay $71.5M in Infringement Case

Introduction

Toy maker MGA Entertainment has been ordered to pay $71.5 million in damages for infringing on the name and likeness of the teen pop group OMG Girlz, following a decision by a federal jury.

This marks a victory for OMG Girlz in a lengthy intellectual property dispute with the California-based company, centered around MGA’s popular “L.O.L. Surprise! O.M.G.” dolls, which were found to bear similarities in name and style to the all-female music group.

The jury concluded that certain dolls in the line infringed on OMG Girlz’s "trade dress" and misappropriated the group's "name, likeness, and identity." As a result, jurors awarded the group, which includes a singer and rapper, $17.9 million in actual damages and an additional $53.6 million in punitive damages.

The legal battle began in 2020 when MGA sought a declaratory judgment that its “L.O.L. Surprise! O.M.G.” dolls did not violate any intellectual property rights of OMG Girlz, after receiving a cease-and-desist letter from the group. OMG Girlz subsequently filed counterclaims.

The first trial, held in January 2023, ended in a mistrial after barred testimony alleging cultural appropriation by MGA was introduced. A second trial initially sided with MGA, but the judge later granted OMG Girlz’s request for a retrial, leading to the recent verdict.