London, Dec 5 MGA Entertainment, the manufacturer of pouty-lipped Bratz doll, has lost its legal battle with the world's largest toy importing company and maker of Barbie, Mattel.

Mattel had sued MGA Entertainment for manufacturing the Bratz doll, which had taken over a huge chunk of Barbie's worldwide market share ever since it was launched in 2001, as they claim to have exclusive rights to the product.

California district judge Stephen Larson granted the right to Mattel, and ordered MGA Entertainment to stop making or selling its popular multi-ethnic figures.

The ruling came after the jury decided in July that MGA's dolls were infringing the Barbie manufacturer's copyright as the doll's designer, Carter Bryant, had come up with the idea for the streetwise fashion figures while working for Mattel and secretly taken the concept to MGA.

"This is a large win for Mattel, if upheld, as it effectively removes Bratz from the competitive landscape," the Telegraph quoted Tim Conder, a Wachovia Capital Markets analyst, as saying.

"This is obviously much more important and critical than any one-time monetary damages," he added.

According to the US National Retail Federation, Barbie remained the top girls toy this year with Hannah Montana dolls overtaking Bratz as the number two favourite and Bratz dropping to fourth place. (ANI)