Warren Buffett’s Jazwares, the company behind the Squishmallows pillows, has filed a lawsuit against Build-A-Bear Workshop, alleging that it launched a similar product to capitalise on the success.
Squishmallows, the plush pillows-with-a-face, went viral on TikTok in recent years and has garnered support from celebrities like Lady Gaga and Kim Kardashian.
Squishmallows toy left, next to Skoosherz’s, right, Source: Guardian & Squishmallows/Skoosherz
However, Jazwares, which was acquired by Buffett’s Berkshire Hathaway Inc (NYSE:BRK.A) two years ago, is now alleging Build-A-Bear’s new Skoosherz looks too similar to its product.
Build-A-Bear launched the new product line last month ahead of Valentine’s Day but was prepared for the legal challenge.
Soon after the claim was made, the toy company struck back with its own legal action, arguing the Skoosherz line is an extension of its existing animal toy range.
It also claimed that its products were part of a wider toy category which has been available to customers for years.
Build-A-Bear took legal action in Missouri, seeking a judicial declaration that its Skoosherz toys do not infringe upon Jazwares' "trade dress" rights associated with Squishmallows.
Jazwares became part of Warren Buffett’s conglomerate following Berkshire Hathaway's acquisition of its parent company Alleghany for $12 billion in October 2022.
Buffet’s toy company alleged Skoosherz were “knock-offs” and claimed there were similarities in its “simplified Asian-style kawaii faces” and “velvety velour-like” fabric.