The district court had ordered MGA to stop selling the dolls and recall and transfer the brand to Mattel by the end of January.
Reuters has reported that the appeal judges questioned whether the original judge had gone 'overboard' by awarding the franchise to Mattel.
The judges did not indicate when or how they would decide the case, but that they would have to rule faster than usual if they needed to stop the transfer.
Chief Judge Alex Kozinski and judges Kim Wardlaw and Stephen Trott wanted to know why Judge Stephen Larson had not awarded Mattel a royalty or an ownership stake in Bratz based on the jury's $10 million damages award for copyright infringement.
Kozinski said: "[The jury] didn't give Mattel everything, They gave them a small fraction of what they asked for," continuing that Larson's remedy was "quite drastic and somewhat unprecedented."
The judges were also concerned that the original ruling did not require Mattel to continue manufacturing Bratz, which has cut into market share for Barbie since its launch.
Mattel has pledged to have its first Bratz dolls out in April buy profitability and other factors probably would determine whether it is continued, Mattel's attorney, Daniel Collins explained.