A Missouri judge has dismissed Build-A-Bear’s lawsuit against Squishmallows parent company, California-based Kelly Toys Holdings.

Earlier this year, Kelly Toys Holdings and its affiliate companies sued Build-A-Bear Workshop over alleged infringement of trade dress rights. Kelly Toys Holdings’ lawsuit, which was filed in California, states that Build-A-Bear's latest plush line, Skoosherz, is too similar to its own brand of cute, round character-like pillow toys, Squishmallows.

The St. Louis toy manufacturer filed a responding lawsuit in Missouri asking the court to declare that Squishmallows’ trade dress is not valid, enforceable or protectable and that Build-A-Bear has not infringed on Squishmallows’ rights.

But on Aug. 2, U.S. district judge Matthew Schelp ruled that because Kelly Toys Holdings “have no offices, physical presence or employees in Missouri” and the company does “not specifically direct or design advertisements for Missouri consumers,” the Missouri case would be dismissed.

“When it comes to connections with a relation to the cause of action, (Build-A-Bear) comes up short,” Schelp wrote in filed court documents. “(Build-A-Bear) has failed to explain how selling Squishmallows in Missouri sufficiently relates to (Kelly Toys Holdings') claimed trade dress rights.”

The initial California lawsuit is ongoing. In it, Kelly Toys Holdings argues that Build-A-Bear’s Skoosherz toys have the same distinctive trade dress as Squishmallows, such as shaped fanciful renditions of animals and characters, simplified Asian-style Kawaii faces, embroidered facial features, non-monochrome coloring and velvety velour-like textured exterior.

“If a picture is worth a thousand words, the side-by-side comparison of Squishmallows against the Skoosherz copycats speaks volumes,” the suit reads.

The Skoosherz line was released in January in anticipation of Valentine’s Day. Build-A-Bear calls the collectible products “spherical plush friends ... made with an ultra-soft plush and stuffing perfect for hugging.”

Build-A-Bear is headquartered in St. Louis. It was founded in 1997 by Maxine Clark and opened its first store in Richmond Heights’ St. Louis Galleria Mall.

Build-A-Bear did not immediately respond to a request for comment.

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