THR reports that Diece-Lisa Industries is suing Disney over unfair competition and trademark infringement. On the Disney side of things, there’s the “Lots-O’-Huggin'” (Toy Story 3’s protagonist) bear. On the LHI side, there’s a real-life “Lots of Hugs” bear toy, something the New Jersey based company has made since 1995 which is 15 years longer than TS3’s “Lotso” has been around.
It gets even weirder because LHI has DLI licensed its “hugging technology” to Applause (affiliated with Henson/Disney) for its sale of Jim Henson’s “Bear in the Big Blue House” huggable stuffed bear product. So basically, they’re saying that Disney was already aware of them and their intellectual property well before they decided to infringe copyright with “Lotso”.
The full complaint can be found here.