Trader Joe’s sues ‘pirate’ customer

Businesses generally consider trademark infringement to be a form of theft—a way for competitors to take advantage of a brand name that does not belong to them.

But, what if the competitor is actually buying the product?

This is the unique situation that Trader Joe's—a California-based specialty grocery store chain—has found itself in. The company is in the process of suing one of its best customers, who just so happens to take all of those goods across the border to resell them in Canada.

"I'm their best customer," Michael Hallatt, owner of Pirate Joe's in Vancouver, told the San Francisco Chronicle. According to the news source, he has spent more than $350,000 at various Trader Joe's stores in the past two years.

The problem, of course, is that Trader Joe's insists that the products and the brand name that they carry are not Hallatt's to sell. A lawsuit filed in federal court in Washington accuses him of trademark infringement, unfair competition, false endorsement and false designation of origin, false advertising, federal trademark dilution, injury to business and reputation and deceptive business practices.

Hallatt's response? This month, his lawyers filed a motion to dismiss. The Chronicle also reported that he has changed the name of his store from Pirate Joe's to Irate Joe's. Other than that, he hasn't changed much about the way he does business.

"Trader Joe's thinks Canadians are too ignorant not to tell the difference between the empire and my little shop on Fourth Avenue," he told the news source.

Businesses that are in Trader Joe's position need legal help to protect their intellectual property. This is an area where a Phoenix business attorney can help.

Categorised in: Business Law

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