Attorney Stephen Smith got a nod from legal magazine Los Angeles Daily Journal today in their “20 Under 40″ feature for his impact on the interactive gaming industry.
MGA Entertainment, the owners of the Underage Slutz Bratz brand of toys just discovered the hard way not to try and jerk Ubisoft around, to the tune of $US 13.4 million. Back in 2002 MGA and Ubisoft entered into an agreement to produce games based on the popular toy line. In 2003, overwhelmed by the massive, inexplicable success of the toys, MGA sought to force a renegotiation by terminating the original contract groundlessly, calling into question every aspect of Ubisoft’s handling of the license in the process. Ubisoft wouldn’t back down, MGA sued, and Ubi countersued for breach of contract. The Greenberg Glusker law firm stepped up to bat for Ubisoft. “Our relationship with Ubisoft went far beyond the normal lawyer-client relationship,” said Smith, who chairs Greenberg Glusker’s Litigation Group and who was lead counsel in the matter. “We effectively became an extension of our client, learning everything about Ubisoft’s business from its most senior management.”
The results? An arbitrator ruled in favor of Ubisoft, of course, with MGA ordered to pay $US 13.2 million in lost profits, attorney’s fees, and interest. All of MGA’s claims were rejected. See kids? That’s what happens when you act like bratz.