Single-Serve Coffee Maker Alleges Unfair Competition in Market

TreeHouse Foods, Inc. has filed an antitrust and unfair competition lawsuit against Green Mountain Coffee Roasters, Inc. and Keurig, Inc., alleging that they have undertaken a series of unlawful practices that have allowed them to dominate the single-serve coffee market, despite the expiration of their “K-Cup” patents in 2012. TreeHouse Foods, Inc. v. Green Mountain Coffee Roasters, Inc., No. 14-0905 (S.D.N.Y., filed February 11, 2014).

Among other matters, the plaintiffs claim that Green Mountain (i) eliminated potential competitors by acquiring them; (ii) systematically tied up vertical distribution channels for competitive cups by entering restrictive exclusive dealing contracts with companies at all levels of the compatible cup distribution system, including machinery sellers, compatible cup component sellers, competitor coffee roasters and coffee brands, and retailers selling compatible cups to end user consumers, businesses and institutions; (iii) filed an unsuccessful patent infringement lawsuit against the plaintiff—the Federal Circuit concluded that “Keurig is attempting to impermissibly restrict purchasers of Keurig brewers from using non-Keurig [Competitive Cups] by invoking patent law”; and (iv) developed a new K-Cup brewer that will be able to identify if a competitive cup is inserted and prevent the brewer from working with it.

Asserting 18 counts under federal, Illinois, New York, and Wisconsin laws, the plaintiffs seek declaratory and injunctive relief; compensatory, trebled and punitive damages; interest; attorney’s fees; and costs.

Issue 513