Plush Wars: It's Squishmallows vs. Skoosherz as Jazwares, Build-A-Bear File Dueling Lawsuits

It’s cuddly chaos as purveyors of plush prepare to face off in court.

Jazwares‘ Kelly Toys Holdings filed a complaint against Build-A-Bear Workshop in a California Court alleging infringement over its intellectual property (IP). At the center of the lawsuit is Build-A-Bear’s new Skoosherz line of plush toys which Kelly Toys calls “knockoff” versions of its own Squishmallows.

At the same time, Build-A-Bear filed a lawsuit against Kelly Toys Holdings in St. Louis seeking a Declaratory Judgement that its Skoosherz brand does not infringe on any trade dress and that any such claims are not enforceable.

Time to hug it out? A Skoosherz Axolotl (left) and a Squishmallows Axoltl (right) | Source: Build-A-Bear/Jazwares

A representative from Jazwares shared a statement with The Toy Book regarding the developing legal scuffle:

While Jazwares does not typically comment on litigation, in this case, we feel we must. Jazwares vehemently protects its intellectual property rights for Squishmallows, the No. 1 best-selling toy in the entire industry, according to Circana (December 2023 point-of-sale full-year report). Build-A-Bear has gone to great lengths to copy the distinct look, feel, and tactile design of Squishmallows to capitalize on Squishmallows’ global success blatantly and intentionally. Like many popular global brands, combating counterfeits and deliberate copycats is a pressing issue, and we trust that the U.S. legal system will also see the obvious infringement."

— Jazwares

Build-A-Bear has not yet publicly commented on the matter.

Today’s filings are just the latest in a steady stream of legal battles surrounding Squishmallows. In December, Jazwares/Kelly Toys filed a complaint against Alibaba as the company continues playing whack-a-mole with knockoffs, counterfeits, and dubious sellers. In the meantime, dozens of similar lawsuits continue to play out in courts across the U.S.

The cases involved in this matter are:

Kelly Toys Holdings LLC et al v. Build-A-Bear Workshop Inc., U.S. District Court, Central District of California, No. 24-01169
Build-A-Bear Workshop Inc. v. Kelly Toys Holdings LLC et al, U.S. District Court, Eastern District of Missouri, No. 24-00211

About the author

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.

Plush Wars: It’s Squishmallows vs. Skoosherz as Jazwares, Build-A-Bear File Dueling Lawsuits

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About the author

James Zahn