Furby Maker Pays Studio For Toy's Likeness To Gremlin

LOS ANGELES - Furby is a holiday hit, but the interactive toy's similarity to a movie Gremlin has reportedly led its maker to pay a hefty settlement.

The entertainment industry newspaper Daily Variety reported that Furby manufacturer Hasbro paid a large, undisclosed amount to Warner Bros., the studio that made "Gremlins" and "Gremlins 2: The New Batch." The films featured a good-tempered and cuddly Gremlin called Gizmo.

Daily Variety also said Furbys will be redesigned as part of the agreement.

But Warner Bros. spokeswoman Barbara Brogliatti said no litigation was pending against Hasbro and that reports of a seven-figure settlement were unwarranted.

"You have to have a lawsuit to have a settlement," Brogliatti said. "We have a long-standing relationship with Hasbro. It's all very friendly and amicable."

Brogliatti would not say whether talks about Furby's similarities to Gizmo continued, but she said the likeness between the two furry dolls is no secret.