Labubu Makers Sue LaBullBu Sneakers as the Craze Cools Down

Just a few months ago, it felt like the entire collectibles world revolved around Labubu. Collectors were camping outside Pop Mart stores. Restocks disappeared within minutes. Resellers were making serious money flipping figures on the secondary market. And social media couldn’t go a day without another Labubu unboxing video.
Fast forward to today, and things look a little different.

While Labubu remains one of the biggest collectible brands in the world, the explosive hype that defined much of 2025 has started to cool. Common figures that once commanded significant premiums have seen prices normalize, and many collectors have become far more selective with their purchases. These days, it’s primarily the ultra-limited editions, secret rares, and highly sought-after collaborations that continue generating strong aftermarket prices.

But even as the resale market cools, one thing remains incredibly valuable: The Labubu brand itself!
That’s exactly why Pop Mart is now taking legal action against a company that dropped LaBullBu Sneakers, claiming it crossed the line.

Pop Mart Takes Legal Action

According to a lawsuit filed in Manhattan federal court, Pop Mart is suing New York-based sneaker and apparel company Bull Airs over a series of products called LaBullBu.

The issue?

Pop Mart alleges that the shoes feature characters and branding that closely resemble its wildly popular Labubu figures.
According to the complaint, the sneakers feature Labubu-inspired figures on the tongues and packaging that Pop Mart claims are “nearly indistinguishable” from the original products, with only minor differences that average consumers may not recognize.

As a result, Pop Mart is pursuing multiple claims, including:

• Trademark infringement
• Copyright infringement
• False designation of origin
• Trade dress infringement

The company is also seeking damages and an injunction to stop Bull Airs from producing or selling the products.

Why Labubu Is Worth Protecting

For many people outside the collectibles world, this lawsuit may seem surprising. But from a business perspective, it makes perfect sense. Labubu has become one of the most recognizable characters in the modern designer toy market. Created by artist Kasing Lung in 2015, the mischievous creature experienced explosive growth over the past two years as Pop Mart expanded globally and social media amplified demand.

At its peak, Labubu evolved from a niche collectible into a mainstream cultural phenomenon. Celebrities like Kim Kardashian and Megan Thee Stallion helped introduce the brand to entirely new audiences, further accelerating demand. When a character reaches that level of recognition, protecting intellectual property becomes essential.

The Timing Is Interesting

What’s particularly fascinating about this lawsuit is when it’s happening. The legal action arrives at a time when concerns have started emerging about the long-term sustainability of the Labubu craze. Recent reports suggest Pop Mart has lost roughly 30% of its market value amid growing fears that demand may be slowing.

That doesn’t necessarily mean Labubu is finished. Far from it!

However, it does suggest the market is entering a more mature phase. Instead of every figure instantly selling for huge premiums, buyers are becoming more selective. Collectors are focusing on quality. Resellers are focusing on rarity. And investors are paying closer attention to long-term value rather than short-term hype.

The Secret Rare Effect

One trend that continues separating winners from losers in the Labubu market is rarity.

While many standard releases have cooled significantly from their peak prices, secret rares and genuinely limited editions continue commanding strong premiums. That’s a pattern sneakerheads will recognize immediately. When hype fades, scarcity becomes even more important. The same thing happened with sneakers, Pokémon cards, and countless other collectible categories.

The strongest products survive. The average products normalize. And Labubu appears to be following a similar path.

What This Means for Collectors

For collectors, this lawsuit serves as a reminder of how valuable the Labubu brand has become.

Companies don’t aggressively defend intellectual property unless that intellectual property is worth protecting. Even as resale prices fluctuate, Pop Mart clearly views Labubu as one of its most important assets moving forward. The company appears determined to maintain control over the character, its image, and the products associated with it.