Raggedy Ann and Andy Cloth Dolls
In 1934, Volland filed for bankruptcy.  Johnny now had to find a new publisher for the books and manufacturer for the dolls.  
The books written by Johnny and previously published by Volland were published by M. A, Donohue while those not written but
illustrated by him were published by Wise-Parslow and Algonquin.  New books were published by Whitman Books.  As happens
in so many stories of business, as the product life extends, cheaper means of producing and distributing affect the product.  
That was true in this case as well.  The books were printed on cheaper paper, fewer illustration varieties and fewer colors in the
illustrations as well as distribution in cheaper outlets all took their toll.  Most of these products have not aged well.

In 1935, Johnny entered into an agreement with the Exposition Doll & Toy Mfg, Co.  Instead of the home made look of the early
dolls, Gruelle had aged Raggedy Ann in the newer graphics.  These graphics of the newer, cartoon creature formed the basis
of the Exposition Raggedy Ann's new look.  Exposition stopped producing the dolls in early 1936 as the legal dispute between
Gruelle and Molly-es heated up.

Molly-es imitated a little too closely forcing Johnny Gruelle to file an infringement of his copyright with the court.  To summarize:




























Subsequent to the legal battles, several companies produced the dolls.  
Exposition Raggedy Ann 1935  An Andy
is mentioned in Playthings of 1935 but
none have been found.
 Ann has an exaggerated top knot in an
exaggerated magenta color.  Her nose is
shorter and wider than previous Anns.  
Her eyes were drawn in the same
manner as Johnny's illustrations.  Her
face, arms and hands were peach cotton.
She has no eyebrows.  The doll was
18.5 inches--larger than the usually 16
inch Volland dolls.  Her striped legs were
the entire length of the leg.  She still has
no joints at her elbows or knees.  Her
clothing consisted of the same three
items of dress, apron and bloomers.  The
fabric was light blue with pink sprigs.  All
ruffles were finished with white or blue
trim tape.  Her feet pointed forward
instead of to the side and she wore
removable felt shoes.  These Anns did
not have cardboard hearts.  They had
paper hangtags and a label sewn to the
hem of the dress.
Molly-Es Raggedy Ann and Andy
 Molly-es Raggedy dolls were usually
marked.  Eyes were primarily painted
though there were a few with shoe button
eyes.  The dolls continued the pattern of
striped legs but they were usually multi
colored.  The blue "shoes" were on the
front facing feet.  Many dolls had elbow
and knee seams.  Some dolls were
stuffed from the bottom while others were
stuffed from the center back seam.
Since the same body was used for both
Raggedy Ann and Andy, Andy developed
a heart for the first time.
Clothes were well made from cotton.  
Elastic was used at the wrists and
ankles.  The apron straps formed a V in
contrast to other Raggedys where the
straps form a square.  Andy's clothes
were removable for the first time.  He had
two buttons on either side of the waist
and two at the knee.  His hat was round
instead of the usual flat style.  
Georgenne early Raggedy Ann and Andy
 The early Georgenne dolls have an
extended length nose.
Georgenne Silsby Raggedy Ann and
Andy
  
Georgenne later Raggedy Ann and Andy
  
Georgenne Awake and Asleep Raggedy
Ann and Andy
 In contrast to the few two faced Molly-es
dolls which featured the same awake
face on both sides, Georgenne
developed and awake and asleep face.
Johnny Gruelle's perspective
 Molly-es perspective
 Court's perspective
Johnny Gruelle patented Raggedy Ann in
1917.
 Johnny Gruelle's patent expired in 1929
and he never patented Raggedy Andy.  
Molly-es began production of her dolls in
1934, though Volland still had the patent.
  
Volland retained the rights to the
copyright until December of 1935
preventing Gruelle from actively using his
patent.
 Since the patent was not in active use,
Molly-es filed for its own trademark for
both Raggedy Ann and Andy.  She was
granted the patent in June (for Ann) and
July for (Andy) 1935.
  
Johnny considered the Molly-es dolls an
infringement upon his patents and did
take Molly-es to court.
 Molly-es considered the Exposition dolls
as infringing upon her patents
threatening to enforce her patents.
 In the fall of 1936, The court found for
the defendant (Molly-es) as Johnny had
not enforced his patent by actively using
it during the time it took to close out with
Volland and develop the contracts with
Exposition.
Johnny appealed
   The appellate court held that the lower
court was correct in its interpretation of
the lapse in the trademark.  However, it
considered the fact that Molly-es had
infringed upon Gruelle's copyright by
producing the dolls while Volland still
held the patent.  Molly-es patent was
rescinded.
Tabbat, Andrew.  The Collector's World of Raggedy Ann and Andy Vol One.  Gold Horse Press. Md. 1996.
Johnny Gruelle prevailed on appeal the day before his birthday on Dec 23, 1937 securing his rights to all images of Raggedy
Ann and Andy.  But the process of securing those rights took a toll.  He was exhausted.  He had steadily been gaining weight.  
He smoked and drank.  And it cost him.  On Jan 9, 1938, Johnny Gruelle died of a heart attack.  

His legacy was carried on by his widow, Myrtle Gruelle.