A federal appeals courtroom on Monday revived a Dealer Joe’s lawsuit accusing a fledgling worker union of trademark infringement for promoting t-shirts, buttons, mugs and reusable tote baggage that includes the grocery chain’s distinctive pink typeface and brand.
In a 3-0 resolution, The ninth U.S. Circuit Court docket of Appeals in Pasadena, California mentioned a trial decide was too fast to dismiss the lawsuit in opposition to Dealer Joe’s United, which mentioned it was created in 2022 and has 4 native chapters.
Circuit Choose Gabriel Sanchez mentioned the power of the Dealer Joe’s title, the chain’s personal sale of tote baggage, and the “strikingly related” marks that includes the identical pink colour, related fonts and concentric circles may confuse shoppers.
“This isn’t one of many uncommon trademark infringement instances by which there isn’t a believable chance {that a} moderately prudent client can be confused,” Sanchez wrote.
Monday’s resolution reversed a January 2024 ruling by U.S. District Choose Hernan Vera in Los Angeles, and returned the case to him.
Vera referred to as the union’s use of the Dealer Joe’s mark honest use, and accused Dealer Joe’s of attempting to “weaponize the authorized system” by suing to realize benefit in a labor dispute.
Dealer Joe’s disagreed, telling the appeals courtroom that federal labor legislation protects many necessary union rights together with advocacy, organizing and hanging, however “promoting branded items in commerce will not be one among them.”
The union countered that no affordable client can be confused by its tote bag, the one product bought by each events.
Based on courtroom papers, the Dealer Joe’s bag featured wine, fruit, cheese and a chopping board. The union bag included a fist holding a field cutter, and the phrase “union.”
Dealer Joe’s relies in Monrovia, California, and has about 600 shops.
Attorneys for the union didn’t instantly reply to requests for remark. Dealer Joe’s and its legal professionals didn’t instantly reply to related requests.
The case is Dealer Joe’s Co v Dealer Joe’s United, ninth U.S. Circuit Court docket of Appeals, No. 24-720.
—Jonathan Stempel, Reuters
