The maker of the popular plush toy Squishmallows, will be heading to trial this September over a trademark dispute involving their “HUG MEES” product line. NECA LLC and its Kidrobot unit, originally sued Squishmallows maker Jazwares LLC and Kelly Toy Holdings in 2023 under the belief that customers would be unable to differentiate the difference between their “HUGME” and the Squishmallows’ “HUG MEES”. NECA has been selling their “HUGME” since 2017.
Jazwares urged the judge to end the case at the summary judgment stage because they believe the unregistered “HUGME” mark found on the plaintiffs’ products is generic, and descriptive at best, with consumers having no attached secondary meaning.
U.S. District Judge Susan D. Wigenton ruled a jury will determine that.
Finnegan partner and trademark practice leader Naresh Kilaru, told Law360 the denial of summary judgment was not surprising because trademark disputes often turn on fact-intensive inquiries, and this one presents several close calls.
If the case goes to trial, Naresh said a key issue will likely be the strength of the "HUGME" mark and whether consumers recognize and associate it with the plaintiffs' toys, said Kilaru, who is not representing anyone in the case.
“The fact-finder is going to have to consider, even if [the mark is] not generic, is it descriptive? And if it’s descriptive, is it protectable? Because descriptive marks are not protectable absent secondary meaning.”
Read "IP Notebook: Hugging It Out"
