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Reading at least the excerpts from the judge's decision, it's clear he is really, really sharp, citing Betty Boop, Japanese anime(!), and The Simpsons, among others. This is a judge I would trust in any IP case I'd find myself in.
It sounds like that judge would understand the role of copyrighted material in culture, and how the strictest interpretations of what constitutes infringement, coupled with insanely long copyright terms, can stifle cultural participation and turn us into a one-way-only society.
Kozinski has a history of striking down overzealous Mattel IP claims.

"If this were a sci-fi melodrama, it might be called Speech- Zilla meets Trademark Kong."

http://notabug.com/kozinski/mattel_v_mca

Personal favorite: Page 23, Section 6, end of 3rd paragraph: "The parties are advised to chill."
On one side, I applaud the higher court's findings.

On the other side, I wish the Bratz dolls would just go away. If I had a daughter, I wouldn't want her to play with Bratz (or Barbie for that matter).

Why do you hate fashion dolls?
I'm not sure what kind of fashion the Bratz dolls represent other than... well, for lack of a better word, skankiness.
Thats what I thought too, but then I watched some of their movies with my daughters. Not completely horrible. Were very good at demonstrating consequences of actions and cleaning up mistakes. Sonny with a Chance on the other hand is mind poison.
I think this judge's decision should be used to instruct people about the difference 'idea' and 'execution.' Nothing like a few billion dollar price tag to make that clear.