This section contains the nature of the case and procedural background.

P is the manufacturer of the 'Beanie Babies' line of stuffed animals. P obtained a preliminary injunction against the sale by D of 'Preston the Pig' and 'Louie the Cow.' These are bean-bag animals manufactured by D that P contends are copies of its copyrighted pig (Squealer) and cow (Daisy). P began selling the 'Beanie Babies' line, including Squealer, in 1993, and it was the popularity of the line that induced D to bring out its own line of bean-bag stuffed animals three years later. D does not contest the part of the injunction that enjoins the sale of Louie but asks us on a variety of grounds to vacate the other part, the part that enjoins it from selling Preston. A glance at the pictures in the record shows a striking similarity between the two bean-bag pigs. The 'real' Preston is the same length as Squealer and has a virtually identical snout. D appealed from the grant of an injunction for P.

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