Alibaba must face lawsuit in US over counterfeit Squishmallows


FILE PHOTO: Shopping trolley is seen in front of Alibaba logo in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK (Reuters) - A U.S. judge on Wednesday rejected Alibaba's bid to dismiss a lawsuit over the alleged sale by various merchants of counterfeit versions of the popular children's toy Squishmallows on its online platforms.

U.S. District Judge Jesse Furman in Manhattan said Kelly Toys, whose parent Jazwares is owned by billionaire Warren Buffett's Berkshire Hathaway, plausibly alleged that Alibaba knew about and contributed to the merchants' infringement of its copyrights and trademarks.

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