Hot Sauce Company Alleges Infringement by THC-Containing Sauce

Tapatio Foods has filed a trademark infringement lawsuit alleging that Tiowaxy Hot Sauce is sold with a similarly designed label, confusing consumers and causing brand tarnishment to Tapatio’s hot sauce. Tapatio Foods v. Alfarh, No. 19-0335 (E.D. Cal., filed March 11, 2019). Tapatio alleges that Tiowaxy’s label infringes because it also features a man in a sombrero with the brand name above the image. Further, Tiowaxy contains THC—which is derived from cannabis—and Tapatio alleges that “the association of the Infringing Marks with marijuana,” “a Schedule 1 controlled substance,” has tarnished Tapatio’s reputation. Tapatio seeks an injunction, corrective advertising, disgorgement and damages for alleged Lanham Act and California consumer-protection statute violations.