When Conan O'Brien moved out to Hollywood to host the 'Tonight' show, he left a lot of material behind from his old show because some of those sketches wouldn't be appropriate for the audience an hour earlier.
And that included the Masturbating Bear.
Now that Conan is out as the host, NBC has claimed a lot of his material to be the intellectual property of the Peacock Network. And it looks like the Masturbating Bear's cousin showed up on '30 Rock' just to prove that point: Maybe I'm wrong. Maybe he was just a random actor (perhaps even Josh!) who plays a bear on 'TGS with Tracy Jordan'. But I don't trust network suits - may they be nibbled to death by ducks! I think it was a way to lay claim to the bear's ownership, even if it was a different costume.
At least he wasn't getting one off the wrist.......