MGA Entertainment has revealed that its Bratz dolls and products, which had been ordered off the shelves for infringing patents held by Mattel, have been given a reprieve.
A report on Reuters said that a judge indicated at a hearing that he will modify an injunction to allow stores to sell Bratz products through the end of 2009.
US District Judge Stephen Larson "indicated he will be modifying his December 3rd stay... to allow purchases and sales (of Bratz items)" beyond a previously set deadline of February 11th, said MGA attorney Tom Nolan.
MGA had asked the judge to postpone his order barring the firm from selling products that infringe Mattel's copyrights until MGA can appeal the ruling.
MGA chief executive Isaac Larian apparently described the ruling as "a good day for MGA, its employees and Bratz".
The Reuters report said that MGA had claimed in court documents that it faced imminent insolvency if the injunction was enforced in February, as retailers cancelled spring orders. Larson's order requires MGA to stop making and selling thousands of Bratz products and to destroy the patterns for the items, as well as to recall unsold merchandise from retailers.
The judge also set a January 5th hearing to rule on whether he should appoint a receiver to monitor MGA's financial dealings at the request of Mattel.
"At minimum, the receiver should be authorised to investigate and monitor any and all financial and business matters involving Bratz and to report them to the court and to Mattel," the company said in court documents.