A federal judge has tentatively ruled that rapper T.I. Harris and his singer-songwriter wife should receive $17.8 million in their legal victory over MGA Entertainment regarding a doll line in a trademark-infringement dispute — but also that the toy giant should not have to pay more than $53 million in punitive damages.
The rapper and his wife, Tameka “Tiny” Harris, won all of the $17.8 million in profits from seven MGA dolls and punitive damages of $53.6 million in a verdict handed down Sept. 23. The Harris family successfully made the case that the dolls were a copy of its OMG Girlz, an ex-rap group that included a Tiny daughter and her friends.
There had been a couple of trials in the case.
U.S. District Judge James Selna handed down a tentative ruling that there was not enough evidence to show MGA acted in a way that would legally warrant the punitive damages.
Under the Lanham Act, it must be shown the company willfully infringed on the trademark and that negligence isn’t enough, Selna said in the ruling.
“Here, the evidence shows that, at most, MGA and (owner and founder Isaac) Larian were negligent about investigating an alleged claim of infringement, but not that they acted with reckless indifference or willfulness,” Selna wrote.
Selna, however, said it was a “narrow” ruling and that there was evidence that the company’s designers produced copycat dolls.
“On numerous occasions, witnesses, particularly designers, were confronted with dolls that appeared to copy famous celebrities,” Selna wrote.
Selna also found that the $17.8 million award will be enough to “deter” MGA from repeating the infringement.
“We’re just elated,” Tameka Harris told reporters following the verdict in the trial in a federal courtroom in Santa Ana.
“The third time’s the charm,” Harris said, referring to a mistrial in the case, followed by MGA’s victory last year, and then a rematch this month.
Attorney Paul Loh, who represented MGA, argued to jurors that the company had sold 45 million dolls from the line but “never heard any complaints from customers or problems about confusion.”
He added, “We do not believe evidence was presented that the OMG Girlz were harmed in any way” by the doll line.
Since the jury had found the company must turn over all of the profits from the seven dolls that should be enough punishment, Loh argued.
“They’re receiving 100% of the profits. We believe that’s already substantial,” Loh said. “A message has been sent.”