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Squishmallows maker can sue Build-A-Bear over alleged knockoffs

July 16, 2024 at 11:28 pm IST

NEW YORK, July 16 (Reuters) - A U.S. judge rejected Build-A-Bear Workshop's effort to dismiss a lawsuit claiming that its Skoosherz plush toys were unauthorized knockoffs of Squishmallows, the popular plush toys made by a unit of Warren Buffett's Berkshire Hathaway.

In a decision on Monday, U.S. District Judge Josephine Staton in Los Angeles said it would be "particularly inapt" to dismiss Kelly Toys' lawsuit, which seeks unspecified damages, in light of the apparent similarities between the products.

The judge 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.

"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," Staton wrote.

Build-A-Bear and lawyers for the St. Louis-based company did not immediately respond to requests for comment on Tuesday. Lawyers for Los Angeles-based Kelly Toys and its parent Jazwares had no immediate comment.

Created in 2016, Squishmallows exploded in popularity during the COVID-19 pandemic, becoming a TikTok sensation and winning fans like Lady Gaga and Kim Kardashian.

They have been part of Buffett's Omaha, Nebraska-based conglomerate since Berkshire bought Jazwares' parent, the insurance holding company Alleghany, in October 2022.

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 is separately suing Kelly Toys in St. Louis federal court, seeking a declaration it did nothing wrong.

Build-A-Bear claimed it based Skoosherz on its existing plush animals, and its advertising left no doubt who made them.

Both lawsuits were filed on Feb. 12.

The cases are Kelly Toys Holdings LLC et al v Build-A-Bear Workshop Inc, U.S. District Court, Central District of California, No. 24-01169; and Build-A-Bear Workshop Inc v Kelly Toys Holdings LLC et al, U.S. District Court, Eastern District of Missouri, No. 24-00211. (Reporting by Jonathan Stempel in New York Editing by Matthew Lewis)

Stocks mentioned in the article

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	BUILD-A-BEAR WORKSHOP, INC.	26.13 USD	+1.91%	+9.15%	347M
	BERKSHIRE HATHAWAY INC.	6,60,388 USD	+1.13%	+6.69%	937B

Warren Buffett

Warren Edward Buffett is an American businessperson who has been at the head of 6 different companies. Presently, Mr. Buffett occupies the position of Chairman & Chief Executive Officer of Berkshire Hathaway, Inc. and Chairman & Chief Executive Officer for Berkshire Hathaway Life Insurance Company of Nebraska, Chairman & Chief Executive Officer for General Reinsurance AG, Chairman & Chief Executive Officer for Berkshire Hathaway Assurance Corp., Chief Executive Officer at Berkshire Hathaway, Inc. (Investment Management) and Manager of Burlington Northern Santa Fe LLC (which are all subsidiaries of Berkshire Hathaway, Inc.). Mr. Buffett is also Trustee at Bill & Melinda Gates Foundation Trust, Principal at West End Capital Management (Bermuda) Ltd. and Member of American Academy of Arts & Sciences and on the board of 5 other companies. Mr. Buffett previously was Chairman of Justin Brands, Inc. Mr. Buffett received an undergraduate degree from the University of Nebraska and a graduate degree from The Trustees of Columbia University in The City of New York.

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Berkshire Hathaway, Inc. (Investment Management) Berkshire Hathaway, Inc. (Investment Management) Investment ManagersFinance Berkshire Hathaway, Inc. (Investment Management) (BHI-IM) is the asset management division of Berkshire Hathaway, Inc. (NYSE: BRK), an American multi-national conglomerate headquartered in Omaha, Nebraska. The firm was founded in 1955 and traces its roots to Valley Falls Company, a textile manufacturing company that was formed in 1839. In 1962, Warren Buffett started to acquire shares of the company until he had majority ownership of it. Berkshire Hathaway engages in insurance businesses conducted on both a primary basis and a reinsurance basis.	Chief Executive Officer
BERKSHIRE HATHAWAY INC.	Chief Executive Officer

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