Trader Joe's Ruling Signals Healthy Litigation Prospects for Trademark Plaintiffs
Briefly

Trader Joe's Ruling Signals Healthy Litigation Prospects for Trademark Plaintiffs
"On September 8, the U.S. Court of Appeals for the Ninth Circuit issued a much-awaited ruling reversing the trial court's dismissal of trademark claims filed by Trader Joe's against the labor union Trader Joe's United. The grocery franchise specifically protested the union's sale of tote bags and other merchandise bearing the name "Trader Joe's United." According to Trader Joe's, this was a commercial use that caused consumer confusion related to sales of goods,"
"A Growing Trend The Ninth Circuit issued a similar reversal of dismissal in another high-profile case in 2018, involving the famous "Honey Badger Don't Care" trademark. In that case, the trademark owner had sued a greeting card company for producing birthday cards featuring the famous "Honey Badger" phrase. The lower court dismissed the claims on summary judgment based on fair use, but the Ninth Circuit reversed and remanded."
On September 8, the Ninth Circuit reversed a trial-court dismissal of Trader Joe's trademark claims against the union Trader Joe's United for selling tote bags and merchandise bearing the name. Trader Joe's alleged the union's use was commercial and likely to cause consumer confusion beyond the union-identifying function. The appellate court held that the merits could not be resolved at an early stage and therefore reversed dismissal. Appellate reversals of early dismissals have become more common, including a 2018 Ninth Circuit reversal in the "Honey Badger" case and earlier reversals by other circuits, signaling a trend toward resolving trademark disputes on the merits.
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