Mattel, headquartered in El Segundo, CA, is the second-largest toy maker in the world (after Lego), with its products sold in more than 150 countries. It was founded by Elliot and Ruth Handler and Harold 'Matt' Matson in a garage in Los Angeles in January 1945, originally a picture-frame business. When they began producing toys, their first big hits were a child-size ukulele and a cap pistol called the Burp Gun. The following year, Matson sold his share to the Handlers due to poor health, and Ruth took over his stake, creating the first Barbie in 1959. By 1966, Mattel controlled 12 percent of the $2 billion toy market in the United States.

German toymaker Greiner & Hausser sued Mattel in 1961, alleging infringement of its patent for the 'doll hip joint' used on the Lilli doll. The case was settled out of court in 1963, and Mattel purchased the company’s copyright and patent rights in 1964. Decades later, in 2001, the court-appointed liquidator for the then-bankrupt Greiner & Hausse sued Mattel in Germany and sought royalties on every Barbie doll sold under their sale agreement. However, the case was eventually dismissed. Financial scandals involving Mattel's executives in the 1970s forced the Handlers to…