## Facts

- Ty, Inc. manufactured and sold the Beanie Babies line of bean-bag stuffed animals, including a pig called “Squealer.”
- GMA Accessories, Inc. later introduced a competing line, including a pig called “Preston the Pig.”
- Ty alleged Preston was an unauthorized copy of Squealer and sought preliminary injunctive relief under the Copyright Act.
- The district court entered a preliminary injunction barring GMA from selling Preston pending litigation.
- The record included photographs of the toys and the toys themselves; the appellate court described the pigs as nearly identical, noting that some apparent differences in photographs were attributable to camera angle, manufacturing error, or non-product adornment.
- GMA argued independent creation, relying on its designer’s drawings and the claim that similarities reflected common reference to real pigs rather than copying.

## Issues

1. Whether Ty showed a likelihood of success in proving that Preston copied protectable expression from Squealer, as opposed to being independently created.
2. Whether the district court properly granted a preliminary injunction based on likelihood of success, irreparable harm, and the balance of harms.

## Decision

- The Seventh Circuit affirmed the preliminary injunction as to “Preston the Pig.”
- The court held that the extreme similarity between the two pigs supported an inference of copying sufficient to show Ty’s likelihood of success at the preliminary-injunction stage.
- The court concluded the district court did not abuse its discretion in finding irreparable harm and that the balance of harms favored Ty.

## Legal Principles

- Copyright law prohibits copying; similarity alone is not infringement if a defendant independently created an identical work.
- Copying may be proven circumstantially, including by “striking similarity” that permits an inference of copying (and, in context, access), especially when the defendant’s independent-creation evidence does not persuasively explain the near identity.
- A preliminary injunction may issue when the plaintiff shows a likelihood of success on the merits, irreparable harm not readily remedied by money damages, and that equities favor interim relief.
- In product and brand-driven markets, harm to goodwill and marketing strategy can constitute irreparable injury supporting preliminary relief.

## Conclusion

The court upheld interim relief because the near identity of the competing stuffed animals supported a reasonable inference of copying and because continued sales threatened non-quantifiable injury to Ty’s goodwill and marketing position, making a preliminary injunction an appropriate exercise of discretion.


Ty, Inc. v. GMA Accessories, Inc., 132 F.3d 1167 (7th Cir. 1997)