Facts

Plaintiff MGA Entertainment Inc. entered into a four-year licensing agreement with defendant Ubisoft Entertainment S.A., a video game manufacturer. Under the agreement, defendant was required to develop video games based on plaintiff's "Bratz Dolls." But in 2003, plaintiff tried to terminate the license, contending defendant failed to meet its obligations under the contract. Nevertheless, defendant continued, for a short period time, to produce the games even after plaintiff terminated the agreement.

The plaintiff filed suit, claiming copyright infringement, trademark infringement and breach of contract.

The defendant filed a countersuit, alleging plaintiff's termination of the license amounted to a breach of contract. The matter proceeded to arbitration. The defendant asserted the parties had agreed on an affordable price for the license, but plaintiff attempted to renegotiate the contractual terms when the Bratz Dolls became popular. The defendant further claimed that when it declined to agree to the new terms, plaintiff terminated the license without cause.

Damages

The plaintiff claimed unspecified compensatory damages, alleging its business suffered irreparable harm due to defendant's infringement. According to defendant's counterclaim, plaintiff's termination of the license agreement resulted in a $20 million loss of potential profits. In addition, defendant sought attorney fees and costs.

Result

The arbitrator found for defendant and awarded it $13.2 million in lost profits, attorney fees and interest.