The two companies, Build-A-Bear and Squishmallows, are currently in a legal battle.

There will likely be a heated legal battle between the creators of Build-A-Bear and Squishmallows.

Kelly Toys and its parent company Jazwares, which is controlled by Berkshire Hathaway, have filed a lawsuit against Build-A-Bear. They claim that Build-A-Bear’s new “Skoosherz” toys are too similar in appearance and style to their highly successful Squishmallows products.

According to the filed complaint, the recently launched Skoosherz line by Build-A-Bear features a trade dress that is remarkably similar to that of Squishmallows. The complaint cites resemblances in shape, face design, color scheme, and materials.

According to Moez Kaba, a lawyer representing Kelly Toys and Jazwares, comparing the original Squishmallows products to Build-a-Bear’s imitations communicates a strong message. Kaba stated that the companies will strongly protect their intellectual property rights.

Jazwares is pursuing compensation for unspecified amounts and requesting that Build-A-Bear cease the sale of Skoosherz products.

However, Build-A-Bear responded with a lawsuit on Monday, arguing that Skoosherz does not violate the rights of Squishmallows makers. They are seeking a ruling that declares the claimed trade dress rights of the Squishmallow maker to be invalid and unenforceable.

The company located in St. Louis claims that Skoosherz merchandise is inspired by their own unique stuffed animals, which have been on the market for several years. The legal action points out that other companies have been using similar features outlined in Jazwares’ complaint long before Squishmallows were introduced.

Build-A-Bear stated that if every element of the trade dress mentioned was considered protected, it would be extremely challenging for competitors to come up with different designs. They also mentioned that Squishmallows’ line has changed and is not consistently the same.

In 2016, Squishmallows were introduced and since then, their popularity has greatly increased. According to Circana, a market research company, the brand’s collection of 8-inch soft toys were the best-selling item in the United States last year.

Squishmallows have not only seen an increase in sales, but they have also gained immense popularity on the internet. Famous figures such as Kim Kardashian and Lady Gaga have even posted pictures of their Squishmallow collections on various social media platforms.

On Tuesday, Jazwares claimed that Build-A-Bear took significant measures to profit from the success of Squishmallows.

Jazwares has initiated a legal case in the U.S. District Court in California, stating that Skoosherz’s appearance, title, and advertising are causing confusion among consumers, potentially resulting in a decrease in sales.

Build-A-Bear responded with its own grievance, submitted in federal court in Missouri, stating that it has no intention of deceiving customers and that there is no real confusion.

In preparation for Valentine’s Day, Build-A-Bear has launched Skoosherz in January.

Lawyers representing Build-A-Bear and the company did not promptly reply to inquiries for additional remarks on Tuesday.

There has been a previous legal dispute involving Squishmallows. In December, Kelly Toys filed a lawsuit against Chinese e-commerce company Alibaba, claiming that their online platforms were utilized to distribute fake Squishmallows.

Jazwares’ parent is Alleghany Corp., an insurance giant controlled by Warren Buffett’s Berkshire Hathaway. Buffett did not immediately respond to a message about the lawsuits on Tuesday, but the billionaire’s Omaha, Nebraska-based conglomerate typically leaves the handling of such litigation to its subsidiaries.

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