Mattel won the first portion, the jury ruling that the original drawings of the dolls belong to Mattel; now they must decide if the subsequent Bratz designs violate these drawings or not; if so, Mattel probably will win the entire franchise.
Mattel Wins In Court And On Bottom Line - Forbes.com
Here is the official response from MGA, they give better detail than me:
http://www.mgae.com/downloads/pressr...7-08%20_2_.pdf