Jazwares, Build-A-Bear Settle Plush Toy Trade Dress Lawsuit

Build-A-Bear Workshop and Jazwares, owner of the Squishmallows brand, have agreed to dismiss a trade dress lawsuit involving Build-A-Bear's Skoosherz plush toys. Jazwares had sued Build-A-Bear in 2024, alleging that the Skoosherz line copied the distinctive look and feel of Squishmallows, which are known for their soft, rounded shapes and embroidered features, potentially causing consumer confusion. Build-A-Bear countered by claiming that the squishie-type plush style has been a long-standing trend and that Jazwares lacked enforceable trademark rights over Squishmallows' design. A federal judge had allowed the case to proceed, finding sufficient similarity between the products, but the parties have now jointly requested dismissal with prejudice, meaning the lawsuit cannot be refiled. Neither company has disclosed details of any settlement. The dispute arose after Build-A-Bear launched Skoosherz in early 2024, following several years of Squishmallows' viral popularity and significant sales growth, especially during the COVID-19 pandemic.