Bratz, Barbie and you

photo by poppyw

We live in an age when multi-tasking is no longer option, it’s the status quo.  We chat on the phone (using hands free devices) while driving and having breakfast. We manage our social networking accounts, blog feeds, and email accounts in between professional responsibilities. And often, we moonlight to feed our passions and balance out the day job that pays the bills.  Multiple sources of income are becoming increasingly common, leading to the concept of slash careers.

Accordingly, you need to learn to CYA — cover your ass.

Today, Mattel (home of Barbie Millicent Roberts) won its lawsuit against MGA Entertainment (of Bratz dolls acclaim).  At issue, Mattel claimed that Bratz dolls designer Carter Bryant developed his creations while under their employment.  As part of his work contract, all ideas generated by Bryant became the property of Mattel. He left the company briefly in January 1998, returned later that year, and then left again in 1999 before pitching his dolls to MGA.  Thought Bryant claims the Bratz concept was born in between stints at Mattel, nascent ideas he didn’t take begin to shape until after he left Mattel the second time, the jury disagreed.  Next week, the jury will begin to contemplate damages owed to Mattel from a product line expected to gross more than $1 billion this year.

Why should this case matter to you?  Did you sign a confidentiality agreement or a contract outlining your duties and responsibilities as well as your employer’s?  How closely did you read that agreement?  Are all light bulb moments proprietary or considered works-for-hire?  It’s not that uncommon for companies to slide in a clause or two mentioning that all works created while under the employ of Company X are considered proprietary if related to your current field.  Even if you’re burning the midnight oil writing your business plan, Company X could fight you for any profits if it can link your billion dollar idea back to work done on company time.

The important point is PROFIT.  Most companies aren’t going to care if you leave to start a business that fails.  I imagine if Barbie was booming and Bratz sales were limping along, Mattel probably would have just wished Bryant the best of luck.  Instead, Barbie sales remain flat and other Mattel properties aren’t flying off the shelf lately, while MGA’s Bratz line continues to suck at Barbie’s market share.  Thus, Mattel wants to pick up profit where it can and, in this case, suing MGA is practically a pot of gold at the end of the rainbow.

Moral of the story: read your employee manuals and contracts v. v. carefully, and don’t sign anything until you understand the implications that could be had on passion projects and intellectual property created outside your standard work hours. And never use company property — be it a copier or landline to further your side business interests.