Squishmallows vs. Build-A-Bear: The story behind the most adorable courtroom battle of 2024

While we were patiently waiting for Pokémon to announce their lawsuit against Palworld, another set of cuddle critters came to blows. The mega-popular Squishmallow stuffed toys manufacturer, Jazwares, is suing Build-A-Bear Workshop for its new Skoosherz plush toy. The company claims the new line infringes on its intellectual property.

Build-A-Bear immediately clapped back, saying that the Skoosherz line is based on existing stuffed animal trends and that the ample advertisements make it clear that they are in no way affiliated with Jazwares.

Squishmallows vs Skooshers

It was only a matter of time before the mega-popular Squishmallow stuffed animals got a cheap knock-off. The brand may have taken several years to reach success after its inception in 2017, but post-pandemic, the kawaii critters can be found almost anywhere. Inspired by the incredibly soft, adorable stuffed toys popular in Japan, the inventor of the toy, Johnathan Kelly, spent a year developing the huggable creatures before releasing them to the public.

Jazwares, a subsidiary of Berkshire Hathaway – a conglomerate that Warren Buffer holds a majority share in – purchased the company in 2018. Berkshire Hathaway is a holding company for private businesses like Fruit of the Loom and Geico, the 6th largest company in the world, and worth just under $850m.

Under the company’s guidance, Squishmallows only increased in popularity. Influencers and celebrities alike have fallen for the charming companions, and the British Toy and Hobby Association declared the 8” plush the top-selling toy of 2023. Squishmallows has a slew of lush pals for consumers to scoop up, and recently teamed up with Disney for even more squashy action.

While a typical Squishmallow will set consumers back around $40, some have insane price tags. Like the Beanie Baby craze of the 90s, some collectible Squishmallows run several thousand dollars. With so many obsessed with the sensory-scratching stuffed toy, it was only a matter of time before knockoffs started appearing.

Build-A-Bear workshop is a giant in the toy industry. Started in 1997 by Maxine Clark, the company cornered the market on the “teddy-bear themed retail entertainment experience.” There are more than 350 stores across the world, and the company is worth around $322m today.

Build-A-Bear’s response to the Japanese-inspired Squishmallows is the Skoosher. At $20 a pop, Skooshers are half the price of the competition, and about half the height too. The company says the plushies were “uniquely styled for optimal hugging benefits,” and launched the line in time for National Hug Day, January 21st, the company also anticipates high sales for Valentine’s Day. The simple critters come in 5 variations as of now, but the Pink Axolotl version was a finalist for Toy of the Year.

The Squishmallow v. Skooshers lawsuit

Jazwares sued Build-a-bear in a Los Angeles Federal court. The company claims that Build-A-Bear “blatantly and intentionally” mimicked the Squishmallows look and feel. The company pointed to the mimicked, “fanciful renditions” of animals, “simplified Asian style Kawaii faces,” and “velvety velour-like” cloth used.

Build-A-Bear maintains they have done nothing wrong. The company claims that there is little consistency in Squishmallows look and feel, and that Skoochers are just the latest in a long line of “Soft, Pillow-like squishie-type” toys to hit the market.  

If Jazwares wins, the company wants Build-A-Bear to immediately cease the sale of Skooshers and similar products, as well as pay triple damages. What the damages are exactly is still undefined.     

Build-A-Bear wants to court to declare that it did not infringe on Jazewares’ “trade dress” rights. Trade Dress Requirements require 2 things. 1 is that the design isn’t for practical reasons, rather it’s aesthetic. 2 is that it must be a distinct design and easily recognizable by consumers.

Its not the first time Squishmallows has gone to court over its designs. Back in 2020, the company was denied an injunction against Ty Inc after claiming that Ty’s Beanie Boos violated then KellyToy’s trade dress. The the toys were soft, round, and very huggable, but the court found no reason to prevent Ty Inc from releasing its latest line of toys.

In late December 2023, a judge denied online retailer Alibaba’s bid to dismiss a lawsuit brought by Berkshire Hathaway. The lawsuit claims that the retailer knew counterfeit versions of Squishmallows were being sold on the site, and alleges that Alibaba contributed to the infringement on copyrights and trademarks.