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US judge declines to dismiss Alibaba’s Squishmallows lawsuit

A US judge denied Alibaba’s request to dismiss a lawsuit alleging that its merchants were selling counterfeit Squishmallows toys.

The judge said that Kelly Toys, the maker of Squishmallows, plausibly claimed that the Chinese ecommerce giant was aware of and involved in copyright and trademark infringements. Alibaba has yet to comment.

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