The copyright infringement case between Squishmallows and Build-A-Bear Workshop’s Skoosherz brand shows no signs of settling down anytime soon.

In the most recent update, a US judge has denied Build-A-Bear’s attempt to dismiss a lawsuit filed by Kelly Toys, the Jazwares-owned company behind the top-selling Squishmallow brand. 

Court documents dated from July 15 and filed in California argued that a dismissal of Kelly Toys’ copyright claim is “not appropriate” since this is not a case where the “works are so dissimilar by plain sight that any person observing them could confidently conclude that they do not share substantial similarities.” 

Jazwares/Kelly Toys first filed its suit in February, alleging that Build-A-Bear had copied key elements of its popular Squishmallows line in a new range of plush toys. These Skoosherz (pictured) give five of Build-A-Bear’s animal characters a cushiony new look. When the toys launched in January, Build-A-Bear marketed the collection as “uniquely styled for optimal squishing and hugging benefits.” 

The suit highlighted several key features of the toys—their egg-like shape, their kawaii facial expressions and their velvety, velour-like fabric—that Kelly Toys says look and feel too similar to its own cuddly stuffed toys. The company also claims that several consumers on social media have pointed out and discussed these similarities, lending credence to its case. Build-A-Bear hit back by filing a competing lawsuit in Missouri, arguing that there was no infringement of copyright because the product features are too broad in nature.

Squishmallows has consistently been a top-selling toy line for Jazwares since launching in 2017, and it currently accounts for as much as 40% of the company’s revenue. This isn’t the first time Jazwares/Kelly Toys has gone to court to protect the brand—for instance, it also filed a suit against Chinese e-commerce company Alibaba over the alleged sales of counterfeit Squishmallows.