The world of plush toys is not typically known as a hotbed of conflict, but that all changed last month when two big names in the industry clashed in court. The legal battle began when the parent companies of Squishmallows sued Build-A-Bear Workshop, alleging that its new “Skoosherz” line looked suspiciously squishy. “If a picture is worth a thousand words, comparing the Squishmallows original products to Build-a-Bear’s copycats speaks volumes,” said Moez Kaba, an attorney representing Squishmallows’ parent companies Kelly Toys and Jazwares. The plaintiffs claim that Skoosherz have the “same distinctive trade dress” of Squishmallows and are seeking an undisclosed amount of damages from Build-A-Bear.

But the St. Louis-based Build-A-Bear isn’t backing down so easily. The firm fired back with a suit of its own seeking a declaratory judgment that invalidates the claims of Squishmallows’ parent companies. Build-A-Bear says that the Skoosherz line is based on its own original plush creations, “which have been sold for a number of years.” The lawsuit also notes many features of Squishmallows’ products that have been prevalent in the plush industry for many years. “If each aspect of the claimed trade dress were in fact protected trade dress, it would be virtually impossible for competitors to create alternative designs,” said representatives for Build-A-Bear. 

Only time will tell how this teddy bear brawl will play out in court, but a few factors might make a major difference. First of all, Build-A-Bear could benefit from its opponent’s overextension in the courtroom as Kelly Toys also squares off against Chinese e-commerce giant Alibaba for similar claims of infringement. Still, Squishmallows’ parent companies hold a major advantage over their smaller competitor: the power of Berkshire-Hathaway, the Warren Buffet-owned investment firm that owns Kelly Toys. This could give Squishmallows a financial edge if its legal battles stretch on through the long term, although it remains unclear if its case against Build-A-Bear will be strong enough to convince a judge. 

Questions: 

1. Why are the parent companies of Squishmallows suing Build-A-Bear, and how did Build-A-Bear respond?
2. Do the parent companies of Squishmallows have a case against Build-A-Bear? Who do you think will win this legal battle?

Source: Wyatte Grantham-Philips, “‘Squishmallows’ Toy Maker and Build-A-Bear Are in a Plush War Over ‘Copycat’ Accusations,” Associated Press, February 14, 2024.