Aug 25 (Reuters) - Jazwares, the Berkshire
Hathaway ( BRK/A )-owned maker of Squishmallows, has agreed to
end a lawsuit against Build-A-Bear Workshop ( BBW ) over its
alleged knockoffs of the popular plush toys, according to a
filing in Los Angeles federal court.
Jazwares and Build-A-Bear asked the court on Friday to
dismiss their dispute with prejudice, which means it cannot be
refiled. Attorneys and spokespeople for the companies did not
immediately respond on Monday to requests for comment, including
on the terms of any settlement.
Jazwares' Squishmallows, launched in 2017, went viral on
TikTok during the COVID-19 pandemic. Sales of the toys topped $1
billion in 2021, and Warren Buffett's Berkshire bought Jazwares'
parent company in 2022.
Jazwares sued Build-A-Bear in California last year, arguing
that Build-A-Bear's Skoosherz copied Squishmallows' look and
feel and would create consumer confusion. It asked the court for
an unspecified amount of monetary damages.
Build-A-Bear responded with counterclaims that Skoosherz
were a kind of "soft, pillow-like squishie-type" toy that has
been trending for years, and that Jazwares lacked trademark
rights in its Squishmallows design.
U.S. District Judge Josephine Staton rejected Build-A-Bear's
request to dismiss the lawsuit last year, finding that Skoosherz
were similar enough to Squishmallows to let the case move
forward.