I'm not sure IP laws stop you making a doll that looks a bit like another doll.

There was that Mattel lawsuit over the 'Bratz' doll rights. It resulted in a huge judgement that was later overturned, IIRC.

EDIT: I suppose I should mention that there were some issues resulting from the guy who made them changing jobs as well, but still, it's not too far outside that realm.

I think Mattel vs Bratz was mostly about the Bratz guy having been employed by Mattel when he had the idea rather than Bratz being similar to other dolls.

You're right, but it wouldn't have happened but for the idea that you can own ideas about dolls in the first place (i.e. I believe it was related to IP assignment clauses in the contract).

a bit is a bit of an understatement though.

I guess that's why they bought Bild Lilli.