Category Archives Issue 550

A University of Utah study has reportedly claimed that female mice fed fructose and glucose monosaccharides in proportions similar to the amount of high-fructose corn syrup (HFCS) in human diets “had death rates 1.87 times higher than females on [a] sucrose diet” and “produced 26.4% fewer offspring.” James Ruff, et al., “Compared to Sucrose, Previous Consumption of Fructose and Glucose Monosaccharides Reduces Survival and Fitness of Female Mice,” The Journal of Nutrition, March 2015. Funded by the National Institutes of Health and the National Science Foundation, the study apparently builds on 2013 research concluding that “when mice were fed either a diet with 25 percent calories in the form of added fructose and glucose monosaccharides or 25 percent calories from starch, females died at twice the normal rate and males were a quarter less likely to hold territory and reproduce.” Although the new study did not find any differences in male mice…

According to a January 1, 2015, New York Times article by Andrew Pollack, the advent of new technologies has created a loophole in federal regulations for companies looking to market genetically-engineered (GE) crops. Noting that new techniques do not involve the transfer of genetic material from other species, use bacterium to insert foreign materials or rely on viruses to manipulate plant DNA, Pollack writes that the U.S. Department of Agriculture (USDA) lacks the authority to regulate these GE crops under its current mandate to protect against plant pests, including insects or pathogens. Although consumer watchdogs have warned that all GE crops could have unforeseen ecological consequences, proponents have argued that easing regulatory burdens will lower barriers to market entry and allow smaller companies to participate in product development. “Regulators around the world are now grappling with whether these techniques are even considered genetic engineering and how, if at all, they…

A January 5, 2015, post on NPR’s “The Salt” blog reports that trademark disputes have come to a head in the craft brewing market, where more than 3,000 companies compete for a dwindling number of pithy beer names. Although many brewers work to resolve issues outside the courtroom, there has also been an increase in litigation alleging trademark violations focused on overlapping product names, font styles and label designs. In some cases, brewers that have used beer names for decades have come under fire from new companies looking to trademark them. In particular, the article notes that many hop-related puns—such as “Hopscotch” and “Bitter End”—are currently used on more than one product. “American trademark law lumps breweries together with wineries and distilleries, making the naming game even more chancy,” concludes NPR. “Even imagery can be trademarked and protected in court.”   Issue 550

Society Insurance has filed a lawsuit in Iowa federal court seeking a declaration that its policy does not require it to defend or indemnify Templeton Rye Spirits in a putative consumer class action alleging that the whiskey distiller falsely represented its products as made from a Prohibition-era recipe. Soc’y Ins. v. Templeton Rye Spirits LLC, No. 15-0005 (S.D. Iowa, filed January 5, 2015). The underlying lawsuit asserts that Templeton claims its whiskey is made in a “small batch” from a Prohibition-era recipe that was a favorite of Al Capone’s, but that the product is actually distilled at an MGP Ingredients, Inc. factory in accordance with a stock MGP recipe. Society seeks a judicial declaration that Templeton’s insurance policy, which Society argues covers only damages based on bodily injury, property damage or personal and advertising injury, will not require Society to indemnify a settlement or judgment against Templeton. The insurance company argues…

Philip Payne, the former operations manager of Halal-food company Midamar Corp., has pled guilty to a charge of conspiracy to make and deliver false certificates and writings stemming from Midamar’s export of beef to Indonesia and Malaysia purportedly prepared in accordance with Islamic law. U.S. v. Payne, No. 14-cr-0143 (N.D. Iowa, request for approval filed January 7, 2015). In his plea agreement, Payne admitted that Midamar attempted to meet the rise in Halal meat demand by supplying kosher beef slaughtered by rabbis without any oversight from a Muslim slaughterman. Several executives at Midamar have been charged with making false statements on export certificates, committing wire fraud and laundering money, allegations to which founder William B. Aossey Jr. and two of his sons pled not guilty in December 2014. A trial on those charges is set for February 17, 2015.   Issue 550

Anheuser-Busch Cos. has reportedly settled a consumer class action alleging that Kirin® beer is represented as a Japanese import even though the products sold in the United States are brewed with domestic ingredients in California and Virginia. Suarez v. Anheuser-Busch Cos., No. 2013-33620-CA-01 (Fla. Cir. Ct., 11th Jud. Cir., settlement preliminarily approved December 17, 2014). The October 2013 complaint alleges that Kirin’s labeling falsely implied that its products remained imported despite a 1996 agreement between the Japanese company and Anheuser-Busch to manufacture the beer in the United States and a 2006 deal that gave Anheuser-Busch the brand’s marketing and sales responsibilities. The complaint alleges that the packaging includes, in fine print, a statement clarifying that the beer is “[b]rewed under Kirin’s strict supervision by Anheuser-Busch, in Los Angeles, CA and Williamsburg, VA,” but that the statement is not visible to consumers before purchase. Under the proposed settlement agreement, consumers will…

A California federal court has denied a motion to dismiss a putative class action alleging that Deoleo USA Inc., importer of Bertolli and Carapelli olive oils, misrepresented the quality of the oils as “extra virgin” despite being mixed with refined oil and using bottles insufficient to prevent sunlight and heat degradation. Koller v. Med Foods, Inc., No. 14-2400 (N.D. Cal., order entered January 6, 2015). Deoleo attacked the complaint for failing to supply the studies supporting the argument that “’imported ‘extra virgin’ olive oil often fails international and USDA standards’ and that packaging olive oil in clear bottles can lead to rapid degradation of its quality,” but the court dismissed the argument for being premature to the pleading phase. Deoleo also asserted that while studies may support the proposition that the oil it imports may not meet extra virgin standards, the plaintiff could not show that the oil in the bottle…

Finding flaws in a lower court’s likelihood of confusion analysis, the Ninth Circuit Court of Appeals has vacated the denial of an injunction sought by Pom Wonderful that would block the sale of Pur Beverages’ “pur pom” energy drink. Pom Wonderful v. Hubbard, No. 14-55253 (9th Cir., order entered December 30, 2014). Pom Wonderful sued Pur to prevent Pur from using the name “pur pom” based on a claim of trademark infringement, but a California federal court denied Pom Wonderful’s motion for preliminary injunction, finding that Pom likely would not prevail because of distinct visual features on the products. The Ninth Circuit disagreed; it found significant similarities between the “POM” mark owned by Pom and the “pom” used by Pur, including a stylized “o” in each. “POM” and “pom” also sound the same and both refer to pomegranate flavoring or ingredients, the court noted. “Balancing the marks’ many visual similarities,…

A California federal court has held that the state law prohibiting the sale of foie gras resulting from the forcefeeding of ducks or geese is preempted by a federal law regulating the distribution and sale of poultry products. Association des Éleveurs de Canards et d’Oies du Québec v. Harris, No. 12-5735 (C.D. Cal., order entered January 7, 2015). The Ninth Circuit previously affirmed a lower court’s denial of a temporary injunction sought by the plaintiffs based on a failure to show a likelihood of success on the merits of their vagueness or commerce clause challenges. Additional information about the Ninth Circuit ruling appears in Issue 497 of this Update, and details about the U.S. Supreme Court’s denial of certiorari to review that decision appear in Issue 542. The court first found that the plaintiffs had standing to challenge the ban despite that defendant Kamala Harris, in her capacity as state attorney…

The U.S. Department of Agriculture’s National Organic Program (NOP) has published draft guidance clarifying the agency’s interpretation of regulations that require organic operations to “maintain or improve the natural resources of the operation, including soil and water quality.” Intended for accredited certifying agents and certified operations, the guidance provides examples of production practices that support the principles of natural resource and biodiversity conservation. It also describes (i) “the certified organic operator’s responsibility to select, carry out, and record production practices that ‘maintain or improve the natural resources of the operation’”; (ii) “the accredited certifying agent’s responsibility to verify operator compliance with this requirement”; and (ii) “how domestic organic operations that participate in a USDA Natural Resources Conservation Service (NRCS) program and the NOP can reduce their paperwork burdens.” The agency will accept comments on the draft guidance until February 27, 2015. See Federal Register, December 29, 2014.   Issue 550

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