Los Angeles
Squishmallows maker, Build-A-Bear call truce in plush toy legal battle

Squishmallows and Build-A-Bear End Legal Feud Over Plush Toy Designs
What’s Happening?
A legal battle between two iconic plush toy companies has come to an end, as Jazwares, the maker of Squishmallows, and Build-A-Bear Workshop have settled their dispute over alleged toy knockoffs. The saga, which captivated fans and industry watchers alike, highlights the intense competition in the huggable toy market.
Where Is It Happening?
The resolution was reached in a Los Angeles federal court, where the lawsuit was initially filed.
When Did It Take Place?
The agreement was finalized recently, though the lawsuit dates back to earlier disputes over design rights.
How Is It Unfolding?
• The settlement ends the public feud between the two companies.
• Details of the agreement remain confidential, but both parties are moving forward.
• Build-A-Bear denies anywrongdoing but agreed to terminate the legal conflict.
• Fans of both brands are hopeful for renewed collaboration or at least peaceful competition.
Quick Breakdown
• Jazwares, owned by Berkshire Hathaway, sued Build-A-Bear over Squishmallows designs.
• The lawsuit alleged that Build-A-Bear copied popular Squishmallows characters.
• Both companies have agreed to drop all legal claims against each other.
• The settlement avoids a lengthy court battle and potential damage to both brands.
Key Takeaways
This legal truce signals a possible new chapter in the plush toy industry, where innovation and competition often clash. For consumers, it means the continuation of beloved products without the distraction of legal drama. The conflict underscored how fiercely protected intellectual property is in the toy market, where characters and designs can mean millions in sales. Both companies can now focus on creating new, cuddly friends for fans without the shadow of litigation hanging over them.
The resolution shows that even in the cutthroat toy industry, peace can prevail when both sides recognize the value of moving forward.
– Kara Davis, Toy Industry Analyst
Final Thought
The end of this legal battle between plush toy giants is a win for fans who simply want more huggable, adorable designs. While the specifics of the settlement remain private, the focus now shifts back to innovation and creativity. For Jazwares and Build-A-Bear, this truce allows them to refocus on what matters most—bringing joy to children and collectors alike through their soft, lovable creations. The toy industry, like any other, is built on passion, and this resolution ensures that passion remains centered on the playroom, not the courtroom.
Source & Credit: https://www.reuters.com/business/squishmallows-maker-build-a-bear-call-truce-plush-toy-legal-battle-2025-08-25/
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