Lawsuit Dismissed, Toymakers Call Truce
In a move that quietly closes the curtain on one of the more dramatic legal dust-ups in the world of plush toys, Jazwares — the Berkshire Hathaway-owned creator of the wildly popular Squishmallows — has officially dropped its lawsuit against Build-A-Bear Workshop. According to the filings in LA federal court, both companies requested to dismiss the case with prejudice, which legally seals the door shut on any future attempts to revive the same claims.
The Billion-Dollar Toy That Sparked a Lawsuit Showdown
The legal battle began last year when Jazwares accused Build-A-Bear of crossing the line with its “Skoosherz” collection — a series of cuddly, squishable toys that, according to Jazwares, bore a suspicious resemblance to their viral sensation, Squishmallows. Launched in 2017, Squishmallows skyrocketed to fame during the pandemic, thanks to TikTok’s virality, and became a billion-dollar brand almost overnight. Berkshire Hathaway stepped in to acquire Jazwares’ parent company in 2022, signaling just how much financial heft was riding on these adorably soft collectibles.
Build-A-Bear’s Defense: It’s Just a Trend, Not a Trademark
At the heart of the dispute was a question of design originality — did Build-A-Bear’s Skoosherz infringe on Jazwares’ intellectual property, or were they simply riding the broader wave of a “soft, pillow-like squishie-type” toy trend that had been building for years?
Build-A-Bear pushed back hard, arguing that plushy, squeezable toys were nothing new and that Jazwares had no trademark claim over what essentially amounted to a shape and a texture. But U.S. District Judge Josephine Staton disagreed — at least enough to allow the case to proceed last year, ruling that the similarities between the two product lines were significant enough to warrant further examination.
Terms Sealed, Dispute Silenced — But the Market Watches Closely
And yet, just as things were set to heat up, both sides tapped out — or perhaps came to an undisclosed agreement behind closed doors. The terms of any settlement remain a mystery. No comment was offered by either company’s legal teams or spokespersons as of Monday.
What’s clear, though, is this: even in the world of plush toys, design matters. Brand identity matters. And in a market where billions are on the table — or rather, the toy shelf — even the fluffiest competitors will fight tooth and claw to protect their turf.
