Trader Joe's Supermarket Chain Sues Crypto Exchange for Trademark Infringement
Summary:
Trader Joe's, a renowned US supermarket chain, has sued decentralized exchange Trader Joe and its co-founder Cheng Chieh Liu over alleged federal trademark infringement and dilution. The claim asserts that the crypto exchange was inappropriately using the supermarket’s branding and narrative. In the lawsuit, it is also stated that despite receiving cease-and-desist letters, the defendants persisted in exploiting the Trader Joe's name, brand, and reputation built over numerous years. Lawyers and experts believe this case could have significant implications for protecting widely recognized brands. A comment from Trader Joe's exchange was not available at the time of the report.
In a recent development, the American supermarket chain Trader Joe’s has initiated legal action against the decentralized exchange, Trader Joe, lodging a trademark infringement and dilution complaint in California's Central District Court. The case alleges that Trader Joe and its co-founder, Cheng Chieh Liu, unduly borrowed from the supermarket’s branding, which prominently features a red cap motif. Even the character development in the platform has been said to imitate the grocery store's narrative.
The supermarket accuses Trader Joe, the crypto exchange, of concealing its origin to avoid legal disputes over its domain name, whilst benefiting from the Trader Joe’s name, goodwill and brand image that has been nurtured over more than half a century.
The legal controversy arose due to certain similarities in the names used on the crypto exchange’s digital platforms, such as their website, YouTube page, Reddit, Github, LinkedIn, Substack, CoinMarketCap, Telegram, and Discord. Moreover, as per the lawsuit, the exchange’s usage of the possessive form ‘Trader Joe’s’ matches the exact trademark registered by the supermarket chain.
Trademark and copyright lawyer, Michael Keyes, mentioned that though the similarities in the goods sold is one aspect, central to the case is also the soundalike names, Trader Joe and Trader Joe’s. Keyes indicated that the grocery firm has a substantial claim as their brand is widely recognized in the U.S., and this could result in an injunction compelling the crypto exchange to cease using its current name.
Keyes further stated that the dilution claim has potential significance as it primarily aims to protect famous and universally recognized brands. He clarifies, "For dilution, you don't have to prove that the goods are interconnected. However, to pursue a claim for dilution, your trademark must be widely recognized by US consumers."
Occasionally, conflicts regarding trademark infringement between crypto entities and organizations from different sectors do emerge. As an example, in 2021, leading American fast food chain Jack in the Box lodged a suit against the crypto exchange FTX US for alleged similarities between its 'Moon Man' character and the food chain’s 'Jack' mascot.
Established in California in 1967, Trader Joe's supermarket has over 500 outlets in the USA, whereas, Trader Joe is a leading decentralized exchange in the field of cryptocurrency. When approached for a comment on the issue, Trader Joe did not respond prior to publication.
Published At
10/12/2023 9:30:00 PM
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