Viacom International Inc. has filed a lawsuit against IJR Capital Investments alleging that a restaurant owned by the company infringes on Viacom’s intellectual property in the “SpongeBob SquarePants” franchise. Viacom Int’l Inc. v. IJR Capital Invs., No. 16-0257 (S.D. Tex., Houston Div., filed January 29, 2016). As the complaint explains, “The ‘Krusty Krab’ is owned by Eugene H. Krabs, a prominent and recurring character in the SpongeBob universe. SpongeBob SquarePants works at the ‘Krusty Krab’ as a fry cook, but he also performs a myriad of other duties, and once stated that his official title is ‘Vice Assistant General Manager in charge of certain things.’” IJR operates The Krusty Krab in Texas and has filed for trademark registration. Viacom argues that IJR is “attempting to trade off of the goodwill and reputation of the ‘SpongeBob SquarePants’ media franchise’ and that consumers are likely to be confused by IJR’s use of “Krusty…
Category Archives Issue 593
A New York consumer has filed a putative class action against Victoria Fine Foods alleging the company falsely advertises its vodka sauce as “all natural” and free of preservatives despite containing citric acid. Shmidt v. Victoria Fine Foods, No. 16-0230 (E.D.N.Y., filed January 15, 2016). The complaint asserts that Victoria “sought to capitalize on consumers’ preference for natural products and the association between such products and a wholesome way of life.” The plaintiff argues that the primary jurisdiction doctrine does not apply because the U.S. Food and Drug Administration (FDA) “has repeatedly declined to adopt formal rule-making that would define the word ‘natural,” although she asserts that FDA “has loosely defined the term ‘natural’ as a product that ‘does not contain added color, artificial flavors, or synthetic substances.’” The complaint also cites the U.S. Department of Agriculture’s Food Standards and Labeling Policy Book, “which states that the term ‘natural’ may…
Bacardi Ltd. has reportedly filed a Freedom of Information Act request seeking information on the renewal of a trademark registration for “Havana Club” granted to Empresa Cubana Exportadora de Alimentos y Productos Varios (“Cubaexport”), a Cuban government-owned entity. Cubaexport had filed for a renewal in 2006, but the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) refused to grant the license required to renew the trademark. Cubaexport sold its rum recipe and the rights to “Havana Club” to Bacardi in 1994, 30 years after the United States prohibited the import of Cuban goods. Bacardi sold rum under the “Havana Club” name while disputing the rights to the mark with Pernod Ricard, which owns the rights to sell Havana Club worldwide. In January 2016, Cubaexport sought to renew its trademark in “Havana Club,” arguing that it had obtained the necessary license from OFAC, and the U.S. Patent and Trademark Office…
A Shanghai court has reportedly fined three Chinese technology companies for their part in spreading rumors that KFC fare is produced with “mutant chickens” with eight legs and six wings. KFC filed a lawsuit in June 2015 seeking damages for economic losses and damage to its reputation. The court reportedly ordered the companies to make an official apology and pay a total of $91,191 (600,000 yuan) to KFC. Additional details about the lawsuit appear in Issue 567 of this Update. See Reuters, February 2, 2016. Issue 593
A California federal court has dismissed a lawsuit brought by People for the Ethical Treatment of Animals Inc. (PETA) alleging Whole Foods Market Inc. falsely advertises its meat as ethically slaughtered. PETA v. Whole Foods Mkt., Inc., No. 15-4301 (N.D. Cal., order entered January 29, 2016). The organization challenged Whole Foods’ five-step Global Animal Partnership rating as misleading consumers because the assessments are allegedly insufficient. Details on PETA’s complaint appear in Issue 579 of this Update. The court first found that PETA had standing to sue despite the organization’s not being a customer of Whole Foods. The court then turned to Whole Foods’ argument that PETA failed to plead its fraud allegations with the specificity required. The photos included with the complaint were insufficient to fulfill the requirement, the court found, because PETA did not clarify which aspects of the in-store displays were at issue. That vagueness also prevented the court…
An Ohio appeals court has affirmed a lower court decision finding that two consumers’ mislabeling allegations against The Kroger Co. are preempted by the Poultry Products Inspection Act (PPIA). Arnold v. Kroger Co., No. C-150291 (Ohio Ct. App., 1st App. D., Hamilton Cty., order entered January 22, 2016). The consumers alleged Kroger’s chickens were not subjected to “a humane environment” as the company advertised and thus were not worth the premium the store charged. The trial court dismissed the claims as preempted by the PPIA, and the plaintiffs appealed. The appeals court was unpersuaded by the plaintiffs’ argument that the Food Safety and Inspection Service’s (FSIS’) inspection and approval of Kroger’s slaughtered chickens were insufficient to determine whether the chickens were in a humane environment while alive. “FSIS has determined that humane treatment of poultry directly implicates its fitness for human consumption because ‘under the PPIA, poultry products are more…
Russian MP Oleg Mikheyev has reportedly asked the government to require “graphic warning labels” on fast-food packaging in an effort to stop the spread of obesity and improve the health of Russian citizens. Mikheyev, who previously proposed a tax on “junk food,” also argued that producers of food products such as potato chips or soft drink be required to include photos of illnesses caused by excessive consumption of those products. “People know that sugar can cause type-2 diabetes, but few of them actually know what the trophic ulcers look like. Same goes for kidney stones that appear because of excessive consumption of salty foods or cholesterol plaques,” Mikheyev reportedly wrote in a letter to Prime Minister Dmitry Medvedev. Russian politicians have discussed mandatory labeling for fast food and other food products in the past, including in a July 2015 bill that proposed restricting fast-food and alcohol ads. See RT, January…
The European Food Safety Authority’s (EFSA’s) Panel on Food Contact Materials, Enzymes, Flavorings and Processing Aids (CEF Panel) has issued a scientific opinion recommending revisions to the safety assessments conducted for food contact materials (FCM). After considering scientific comments received during public consultation, the CEF Panel advocates new standards for estimating food intake and calculating the level of FCM migration into food. The scientific opinion also finds that genotoxicity testing for FCM substances should be mandatory even in low-exposure scenarios, and that nanomaterials used in FCM should be evaluated on a “case by case” basis. To address different consumption scenarios, the CEF Panel divided foods into four categories based on exposure data extrapolated from EFSA’s Comprehensive European Food Consumption Database as well as “default water consumption figures set by the World Health Organization (WHO) for infants.” For each of these food categories, the panel identified the “critical” age group with…
The Centers for Disease Control and Prevention has declared that two E. coli outbreaks linked to Chipotle Mexican Grill Inc. “appear to be over,” but the agency has not identified a food source for the outbreaks. “The epidemiologic evidence collected during this investigation suggested that a common meal item or ingredient served at Chipotle Mexican Grill restaurants was a likely source of both outbreaks,” the agency said. “When a restaurant serves foods with several ingredients that are mixed or cooked together and then used in multiple menu items, it can be more difficult for epidemiologic studies to identity [sic] the specific ingredient that is contaminated.” Meanwhile, Chipotle faces a joint investigation by the U.S. Food and Drug Administration and U.S. Department of Justice into a 2015 norovirus outbreak in one of its California restaurants. The company has reportedly been served an additional subpoena requiring it to produce documents on company-wide…
The U.S. Department of Agriculture (USDA) has finalized standards that seek to reduce Salmonella and Campylobacter in ground chicken and turkey products, as well as raw chicken breasts, legs and wings. Part of the Food Safety and Inspection Service’s (FSIS’) effort to revamp the poultry inspection system, the new rules require routine sampling throughout the year rather than infrequent sampling on consecutive days, and authorize the agency to publicize facility results online. “Over the past seven years, USDA has put in place tighter and more strategic food safety measures than ever before for meat and poultry products. We have made strides in modernizing every aspect of food safety inspection, from company record keeping, to labeling requirements, to the way we perform testing in our labs,” said USDA Secretary Tom Vilsack in a February 4, 2016, news release. “These new standards, in combination with greater transparency about poultry companies’ food safety…
