Warren Buffett's toy company sues Build-a-Bear over rip-off

Squishmallows maker says rival Skoosherz is trying to capitalize on toy's global success

Berkshire Hathaway-owned toy company Warren Buffett, sued Build-A-Bear over alleged «counterfeits.»

Florida-based Jazwares accused the teddy bear maker of «going out of its way to copy a particular look , feel and tactile design» of their best-selling Squishmallows cuddle toys.

Squishmallows are round stuffed animals that usually look like a large face with no arms or legs. The toys first went on sale in 2017 as a set of eight animals, including a cat, frog and hedgehog, and have since expanded to include a variety of characters including Baby Yoda from Star Wars and Pikachu from » Pokemon.»

< p>The plushies have gone viral on TikTok during the pandemic after being popularized by celebrities such as Lady Gaga and Kim Kardashian.

Around five million Squishmallows were sold in the UK last year. They retail from £9 to £50.

Jazwares, which is owned by Buffett's investment company Berkshire Hathaway, has now accused Build-A-Bear of copying Squishmallows with its own line of Skoosherz plush toys.

In the lawsuit filed in California, Jazwares alleged that both toy lines featured «whimsical depictions» of animals with «simplified, Asian-inspired kawaii faces» and were made of «velvety, velor-like» fabric.

< p>Jazwares said Build-A-Bear is trying to «clearly and deliberately capitalize on the global success of Squishmallows.»

Build-A-Bear says its Skoosherz toys are «uniquely designed for optimal cuddling.» Photo: Build-A-Bear Workshop

Build-A-Bear filed its own lawsuit in federal court in St. Louis, seeking a declaration that it did not infringe on Jazwares' rights to its line of toys. The company said its Skoorsherz toys are based on stuffed animals it already sells, and the new line is simply the latest in a series of «soft, pillow-like squishy-type toys» that have proven popular in recent years.

Build-A-Bear said it launched the Skoosherz line ahead of Valentine's Day because they «feature a unique design for optimal cuddling.»

The legal scandal is the latest demand from Jazwares to protect its intellectual property. The company recently sued Chinese e-commerce giant Alibaba over claims that its website sold counterfeit versions of its toys. In December, a judge rejected Alibaba's request to dismiss the lawsuit.

Jazwares became part of Buffett's empire in 2022 when Berkshire Hathaway bought its parent Alleghany Corp for $11.5bn (£9.1bn). Jazwares and Build-A-Bear have been contacted for comment.