MGA Accuses Mattel of Spying on Rivals

Toy-maker MGA Entertainment is accusing rival Mattel Inc. of spying on other toy companies and stealing trade secrets as the epic legal battle over the future of the Bratz doll line continues.

MGA says in a counterclaim filed Monday that Barbie-maker Mattel used fake name badges to slip into the showrooms of Mattel's competitors at various international trade shows.

Mattel says the allegations are false.

A federal jury awarded Mattel $100 million in 2008 and shifted ownership of the sultry, street-wise Bratz dolls to the El Segundo, Calif.-based company.

A federal appeals court overturned that ruling last month and the case is set to be retried in January.

Mattel believes the man who designed the Bratz dolls for MGA was actually working for Mattel when he created them.