Russia has targeted Peppa Pig in retaliation against Western economic sanctions following the invasion of Ukraine.
Entertainment One — which owns the rights to the children's TV series — took legal action last September against a Russian entrepreneur, Ivan Kozhevnikov, who had drawn his own versions of Peppa Pig.
The company had requested 40,000 roubles (£400) in compensation, though the currency's recent collapse means this would now be worth only £320.
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But Judge Andrei Slavinsky has dismissed the case in an arbitration court in the Russian city of Kirov. Ruling that the British cartoon character's trademarks can be used by Russian businesses without punishment, he cited "unfriendly actions of the United States of America and affiliated foreign countries".
Judge Slavinsky also pointed to the "restrictive" sanctions from the West over Russia's invasion of Ukraine. It comes after the Russian government issued a decree allowing patented inventions and industrial designs from "unfriendly countries" to be used without permission or compensation.
Those deemed "unfriendly" include the UK, USA, Australia, Ukraine, Japan and EU. Major brands including Apple, IKEA, Disney, McDonald's and Coca-Cola have halted operations in Russia following threats of boycotts in the West.
Sky News reports the ruling has sparked fears that Moscow could allow trademarks to be stolen on a wider scale. American lawyer Josh Gerben said Russia could start letting local operators run the closed McDonald's stores.
Mr Gerben described Peppa Pig as an "early victim" of Russian trademark theft which could soon become commonplace. He tweeted: "Stealing trademark and patent rights during wartime has happened before. During WWI and WWII the US Government seized trademarks and patents from companies based in Germany and Japan. I would expect Russia's efforts to steal Western IP [intellectual property] to intensify in the coming weeks."
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