Most other large consumer goods corporations learned years ago not to let in-house counsel anywhere near decision-making on social media issues unless there were clear cases of defamation or trademark infringement involved. Mattel’s lawyers just screwed the company royally.
Mattel’s executives still have time to salvage this. First, they should use their corporate clout to get YouTube to reverse the ban; second, they should announce that the lawyers involved were either fired or re-assigned to HR scutwork; third, they should issue a groveling apology to the fans who were affected.