According to Reuters and other sources, a US judge has rejected Build-A-Bear Workshop’s effort to dismiss a lawsuit claiming that its Skoosherz plush toys were unauthorised knockoffs of Squishmallows, the popular plush toys made by Warren Buffett’s Berkshire Hathaway owned Jazwares and Kelly Toys.
In the decision on Monday 15 July, Los Angeles US District Judge, Josephine Staton, said it would not be correct to dismiss Kelly Toys’ lawsuit, which seeks unspecified damages.
Josephine Staton cited online accounts associated with Build-A-Bear where users posted comments such as “so now ur making squishmallows?” and “Cmon plagiarism” when discussing Skoosherz.
“We look forward to continuing to vigorously pursue our claims against those who infringe our client’s intellectual property rights”
She wrote: “This case is not an instance where the works are so dissimilar by plain sight that any person observing them could confidently conclude that they do not share substantial similarities.”
Moez Kaba, a lawyer for Kelly Toys and its immediate parent, Jazwares, said: “We look forward to continuing to vigorously pursue our claims against those who infringe our client’s intellectual property rights.”
Build-A-Bear and its lawyers did not immediately respond to requests for comment.
Created in 2016 by Kelly Toys, Squishmallows exploded in popularity during the COVID-19 pandemic and become a TikTok hit. The Warren Buffett connection stems from his Berkshire Hathaway buying Jazwares’ parent, the insurance holding company Alleghany, in October 2022. Jazwares itself acquired Kelly Toys in 2020.
Kelly Toys accused Build-A-Bear of intentionally undermining its goodwill and causing confusion by copying Squishmallows’ look and feel, including “simplified Asian style Kawaii faces” and “velvety velour-like” fabric.
Build-A-Bear introduced Skoosherz in January, in anticipation of Valentine’s Day, saying they were “uniquely styled for optimal hugging benefits.” It claimed it had based Skoosherz on its existing plush animals, and its advertising left no doubt who made them.
The original lawsuits were filed on 12 February 2024 and at half time it’s 1-0 to the Squish Squad.
