Disney / Pixar
The creator of "Lots of Hugs" bears is suing Disney for trademark infringement, unfair competition, and more. Diece-Lisa Industries has trademarked "Lots of Hugs" and even has patented its "hugging technology," which it leased for another bear toy affiliated with Jim Henson's "Bear in the Big Blue House" TV program. (What is hugging technology? Someone call a lawyer.)
In turn, Disney's use of Lotso in "Toy Story 3" has created some hassles for DLI when it comes to licensing their own product. One such client, Interactive Group, was concerned about using the "Lots of Hugs" trademark on its bears because Disney is known to protect its intellectual property with a fierceness. Instead of worrying about a Disney lawsuit, IG skirted the issue by simply using the term "hugalots" rather than "Lots of Hugging." Not only does this mean the company suffers from visibility issues (people want their "Lots of Hugging" bears!) but Disney rakes in the bucks with movie tie-ins -- bucks that DLI could have a claim to.
According to "The Hollywood Reporter," "DLI is now suing for unfair competition and trademark infringement and demanding profits attributable to the alleged bad actions, trebled damages and an injunction on future use of the 'Lotso' character."
Personally, we should all sue because how creepy is this purple vibrating bear? Huh?