Mattel Loses Ruling on Cybersquatting Law

Mattel Inc. lost a bid to reinstate trademark suits against Web sites such as Hotwheelsweb.com and Barbie-Club.com.

The world’s top toy manufacturer sued 57 Internet sites two years ago, invoking a 1999 law requiring the sites to cancel or transfer the domain names. The law targeted people who were “cybersquatting” by using other companies’ trademarks to register their Web sites.

A federal judge in New York dismissed the claims, saying El Segundo-based Mattel should have filed suit elsewhere against sites registered in Maryland, Virginia and California. An appeals court agreed in a ruling that clarifies where companies must bring such cases.