Two days after filing a lawsuit alleging that Sierra Nevada Brewing Co. infringed its stylized label trademark featuring the letters “IPA,” Lagunitas Brewing Co. filed a notice of voluntary dismissal without prejudice in the case and its owner, Tony Magee, publicly commented that he had been “seriously schooled” by the “Court of Public Opinion” following a wave of social media backlash. The Lagunitas Brewing Co. v. Sierra Nevada Brewing Co., No 15-153 (N.D. Cal., notice of voluntary dismissal filed January 14, 2015). The complaint alleged that Sierra Nevada’s label for its new Hop Hunter IPA, in a “radical departure” from its typical label designs, infringed the Lagunitas trademark on “large, all-capital, bold, black and centralized ‘IPA’ lettering.” The complaint further argued that “[w]hen Lagunitas began selling its now iconic IPA beer in 1995, there existed only a handful of other brewers who produced an India Pale Ale, and, on information and…
Category Archives U.S. Circuit Courts
The Federal Circuit Court of Appeals has affirmed a lower court’s ruling that unauthorized public use of the Scarlet Royal and Autumn King varieties of table grapes does not invalidate the U.S. Department of Agriculture’s (USDA’s) patents on them. Delano Farms Co. v. Cal. Table Grape Comm’n., No. 2014-1030 (Fed. Cir., order entered January 9, 2015). The appellants, three farming companies, had challenged the patents on the grounds that they were in public use for more than a year before the date of the patent applications. According to the facts determined by a lower court’s bench trial, the mature fruit of grape varieties were exhibited at an experimental variety open house in 2001 at California State University, Fresno. Without authorization, a USDA employee gave a grape grower the plant materials for the unreleased varieties, and that grower in turn gave the materials to his brother and cousin in addition to…
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…
A California state court has lifted an injunction that barred bisphenol A (BPA) from placement on the list of reproductive toxicants mandated under Proposition 65, the 1986 law requiring warnings to the public about exposure to chemicals “known to the state to cause cancer or reproductive toxicity.” Am. Chemistry Council v. Office of Envtl. Health Hazard Assessment, No. 34-2013- 00140720 (Super. Ct. Cal., Cty. of Sacramento, order entered December 18, 2014). BPA joined the Prop. 65 list in April 2013, but a court granted the injunction barring its inclusion one week later. The court assessed whether the Office of Environmental Health Hazard Assessment (OEHHA) abused its discretion in finding substantial evidence that the regulatory criteria to list BPA were met. It found the American Chemical Council’s (ACC’s) argument that an entry to the list must be supported by “clear evidence that the chemical is known, not merely suspected, to cause cancer…
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…
A consumer has filed a putative class action in Florida federal court alleging that LesserEvil LLC falsely advertises its Chia Crisps as containing “a significant amount of chia seeds, when, in actuality, the Product is primarily composed of black beans, a less expensive ingredient.” Crane v. LesserEvil LLC, No. 14-62854 (S.D. Fla., filed December 16, 2014). The plaintiff asserts that LesserEvil attempted to capitalize on increasing consumer demand for antioxidant-rich chia seeds by creating a black-bean product with an insignificant amount of the seeds and advertising it as a chia-seed product. She alleges unjust enrichment and a violation of the Florida Deceptive and Unfair Trade Practices Act; she seeks class certification, compensatory damages, restitution, an injunction, and attorney’s fees. Issue 549
