Warren Buffett is taking up Build-A-Bear.
Jazwares, the Berkshire Hathaway-owned maker of the favored Squishmallows plush toys, sued Build-A-Bear Workshop on Monday, calling its latest Skoosherz plush toy line “knockoffs” that infringed its mental property rights.
To not be outdone, Build-A-Bear filed its own lawsuit against Jazwares on Monday, saying Skoosherz are based on its existing plush animals, and that its promoting and marketing since last month’s launch clarify who made them.
The dispute marks Jazwares’ latest effort to guard Squishmallows from alleged knockoffs and counterfeits, including a lawsuit against online retail platform Alibaba.
Squishmallows joined the ranks of the world’s hottest toys after becoming a viral sensation on TikTok, and winning devotees like Lady Gaga and Kim Kardashian.
They’ve been an element of Berkshire since Buffett’s Omaha, Nebraska-based conglomerate bought Jazwares’ parent, the insurance holding company Alleghany, in October 2022.
Jazwares sued Build-A-Bear in Los Angeles federal court.
It said Build-A-Bear “blatantly and intentionally” undermined its goodwill and created substantial confusion amongst consumers by copying Squishmallows’ feel and appear, including “shaped fanciful renditions” of animals, “simplified Asian style Kawaii faces,” and “velvety velour-like” fabric.
“In the case of mental property rights, imitation will not be the sincerest type of flattery,” Jazwares’ lawyer, Moez Kaba, said in an announcement.
In accordance with Build-A-Bear’s lawsuit in St. Louis federal court, nevertheless, Squishmallows lack a consistent feel and appear, and Skoosherz are simply essentially the most recent style of “soft, pillow-like squishie-type” toys which have been trending for years.
Build-A-Bear said it launched Skoosherz in anticipation of Valentine’s Day, Feb. 14, to tap a marketplace for plush toys that were “uniquely styled for optimal hugging advantages.”
Neither Build-A-Bear nor its lawyers immediately responded to requests for extra comment.
Jazwares wants Build-A-Bear to stop selling Skoosherz and similar products, and pay unspecified triple damages.
Build-A-Bear wants a court declaration that it didn’t infringe Jazwares’ “trade dress” rights in Squishmallows, and that any such rights are unenforceable.
Squishmallows were created in 2016 by Kelly Toys.
Jazwares bought a majority stake in that company 4 years later.