Jazwares, a company under the Berkshire Hathaway umbrella, is embroiled in a legal battle over its popular HugMees plush toys. A federal judge in Newark, New Jersey, has ruled that Jazwares must face a lawsuit from Kidrobot, which claims that the HugMees line infringes on its HUGME trademark. The case, overseen by U.S. District Judge Susan Wigenton, centers on whether HugMees could confuse consumers due to their similarity to Kidrobot’s HUGME toys.
Trademark Dispute Details
Kidrobot, known for its plush toys based on licensed characters like SpongeBob SquarePants and Disney’s Lilo and Stitch, has been using the HUGME trademark since 2017. Jazwares, through its Kelly Toys brand, began selling HugMees in 2019, two years before registering the ‘Squishmallows Hug Mees’ trademark in 2024. The U.S. Patent and Trademark Office had previously refused Kidrobot’s attempt to trademark ‘HUGME,’ citing potential consumer confusion with existing trademarks, including ‘Squishmallows Hug Mees’ and another company’s ‘Hug Me Now.’
Jazwares, headquartered in Plantation, Florida, did not immediately comment on the lawsuit, nor did Kidrobot or its parent company, NECA LLC. The legal proceedings highlight the competitive nature of the plush toy market, where brand identity and trademark rights are fiercely protected.
Background and Market Impact
Squishmallows, launched in 2017, gained significant popularity during the pandemic, partly due to viral trends on platforms like TikTok. In 2022, Berkshire Hathaway, then led by Warren Buffett, acquired Jazwares’ parent company, Alleghany. The acquisition underscored the value and growth potential seen in the plush toy sector.
Previously, Jazwares had settled a lawsuit with Build-A-Bear Workshop, which it accused of copying the Squishmallows’ design for its Skoosherz line. This ongoing trademark dispute with Kidrobot further emphasizes the challenges companies face in maintaining distinct brand identities in a crowded market.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
