TradeEdge Exchange:Squishmallows and Build-A-Bear enter legal battle over 'copycat' plush toys: What to know

There is TradeEdge Exchangenothing soft about the lawsuits being thrown around by Squishmallows and Build-A-Bear, who are going to court as the popular squishy toy company accuses the stuff-your-own-plush brand of copying its stuffed animals.

Warren Buffett’s Berkshire Hathaway's company Jazwares, who acquired KellyToys, the company that created Squishmallows, filed an intellectual property lawsuit against Build-A-Bear in California last week in the United States District Court for the Central District of California, stating Build-A-Bear's new line of stuffed animals, Skoosherz, is a knock-off of the popular Squishmallows plush toys.

"Instead of maintaining its original idea of allowing consumers to create their own toys, Build-A-Bear now seeks to trade off the goodwill of Squishmallows by marketing obvious copycat products," states the complaint.

Now, the company is seeking unspecified damages and wants Build-A-Bear to stop selling Skoosherz products. But Build-A-Bear filed its own lawsuit, saying the trade dress rights are baseless.

Here's everything to know about the plush legal battle.

Jazware's lawsuit against Build-A-Bear

"Build-A-Bear has been trying to trick customers looking for Squishmallows into buying its own Skoosherz instead," Jazware's complaint claims.

Jazware's attorney, Moez Kaba, told USA Today that Build-A-Bear's designs are very similar to some of Squishmallows' most popular designs.

“Squishmallows has become wildly successful due to Jazwares’ creativity and investments," said Kaba. "Jazwares will vigorously pursue and protect its clients’ rights. The law protects innovation, not imitation.”

The complaint filed by Jazwares states the following as evidence that Build-A-Bear is copying its unique brand:

• Build-A-Bear uses the same manufacturer as Jazwares to create Skoosherz.
• Skoosherz' name "closely resembles" Squishmallows' name.
• The plushies' texture and feel are similar to each other.
• Skoosherz have similar "simplified Asian style kawaii, (meaning cute in Japanese), faces."

The complaint also points out that Skoosherz don't follow the Build-A-Bear model of creating the toy in-store. Instead, Skoosherz come premade.

Kaba told USA TODAY he believes it's "interesting" that Build-A-Bear "decided to do something that is contrary to the business model that they've accepted," and created something that looks similar to Squishmallows.

"Obviously, customers are going to be confused and just think 'oh this is basically a Squishmallow,'" said Kaba.

Build-A-Bear files lawsuit backing its designs

Build-A-Bear fired back by filing a lawsuit in Missouri that states its new line doesn't infringe on Jazware's rights.

AP News reported the make-your-own toy company wants a declaratory judgment stating the trade dress rights claimed by Squishmallows' makers are baseless.

According to the outlet, the Missouri-based toy company says Skoosherz's designs are based on the company's own original stuffed animals that it has been selling for years.

“If each aspect of the claimed trade dress were in fact protected trade dress, it would be virtually impossible for competitors to create alternative designs,” Build-A-Bear said, reports AP news.

Build-A-Bear has not returned USA TODAY's request for comment.

What are Squishmallows?

Squishmallows is a popular plush that was created by Kelly Toys and debuted in 2017, according to its website.

Their owners can find a tag on each Squishmallow with its name and a description of its personality.

The designs come in a variety of animals and food. People can even find Squishmallows of popular characters like Pooh Bear, Hello Kitty and Kermit the Frog.

The Squishmallows craze started because it went viral on TikTok, and the toy was soon popular among teenage girls before becoming one of the most popular toys sold during the holiday season, reports the Guardian.

What are Skoosherz?

On January 12, Build-A-Bear introduced the controversial line of huggable plushies, called Skoosherz, in a press release.

Build-A-Bear released the Skoosherz collection in anticipation of National Hug Day.

"As a teddy bear hug authority, Build-A-Bear was inspired to create the extra huggable Skoosherz as research indicates hugs improve emotional and physical well-being," states the press release announcing the toy.

The five plushies that are available for purchase on the Build-A-Bear website are:

• Pink axolotl
• Green frog
• Red dinosaur
• Rainbow teddy bear
• Pink "strawberry" cow

Build-a-Bear's new line joins a competitive stuffed animal market to the likes of TY, who also sells Beanie Babies, Squishables and, of course, Squishmallows.

Disney's Munchlings, plushies of food inspired by Disney characters, are another brand of stuffed animals that are soft, squishy and round.

All the companies now sell plushies that, unlike traditional stuffed animals, are less firm, have fewer edges and are shaped into something resembling a circle or egg, all of which can make them easier to cuddle, sleep with or use as a pillow.

Julia is a trending reporter for USA TODAY. She's covered various topics, from local businesses and government in her hometown, Miami, to tech and pop culture. You can follow her onX, formerly known as Twitter,Instagram andTikTok: @juliamariegz.