The U.S. Court of Appeals for the Sixth Circuit has affirmed summary judgment in favor of Peristyle LLC, finding that its use of the term "Old Taylor" falls under the Lanham Act's fair use defense. Sazerac Brands, LLC, v. Peristyle, LLC, No. 17-5933/5997 (6th Cir., entered June 14, 2018). The "Old Taylor" mark references Colonel Edmund H. Taylor, Jr., who built the Old Taylor distillery in 1887, and although production at the facility ceased in 1972, Sazerac Brands owns the trademark rights to "Old Taylor" and "Colonel E.H. Taylor." Peristyle was formed to renovate the medieval castle-style building, listed on the National Register of Historic Places as the "Old Taylor Distillery." Although Peristyle has not resumed bourbon production at the facility, it has used the name "Old Taylor Distillery" in its marketing materials. Noting that a defendant seeking shelter under the fair use defense must show use of the mark…
Tag Archives Kentucky
A Las Vegas restaurant called the Heart Attack Grill has filed suit against a Tennessee restaurant calling itself the Heart Attack Shack, claiming trademark infringement. HAG IP, LLC v. Tipps Enterprises Inc., No. 17-0652, (M.D. Ky., filed March 29, 2017). The Las Vegas restaurant, which claims trademarks on its Single, Double, Triple and Quadruple Bypass burgers and Flatliner Fries, alleges that the Tennessee restaurant, which features burgers, wings and “Flatliner XL” fries, has infringed its trademarks. In a February 2017 article in the Chattanooga Times Free Press, the defendant owner claimed he named his restaurant after a “heart attack” burger on the menu of a restaurant that previously occupied his location. For trademark infringement of registered marks, the plaintiff seeks injunctive relief, accounting, damages, attorney’s fees and destruction of all promotional materials bearing the trademarks. In 2012, after the plaintiff sent a cease and desist letter to New York’s Second…
A Kentucky federal court has granted a motion to dismiss an action against the owner of Duck Dynasty trademarks alleging infringement based on jurisdictional issues. Chinook USA v. Duck Commander, Inc., No. 14-1015 (W.D. Ky., Louisville Div., order entered January 8, 2015). In 2014, Duck Commander licensed the rights to several trademarks related to Duck Dynasty, including “Duck Commander Family Foods,” “Uncle Si” and “Si Robertson,” to Chinook for use on several types of beverages. Chinook later learned that Duck Commander also licensed the same rights to other companies, including Go-Time and Checkered Flag Business. Chinook sued, arguing that it held exclusive rights to the use of the trademarks on beverages. In “colorful” filings recounting “Bill Russell’s collegiate basketball career, the Scottish jurist and poet Sir Walter Scott’s Marmion, and Jackie Gleason’s role in an short-lived television series from the late 1940s,” Chinook argued that Duck Commander and the beverage…
Sazerac Co., maker of Fireball Cinnamon Whisky®, and Stout Brewing Co. have filed a joint stipulation of dismissal with prejudice in a lawsuit alleging that Stout infringed Sazerac’s trademark by selling a malt specialty beer called “Fire Flask.” Sazerac Co. Inc. v. Stout Brewing Co. LLC, No. 15-0107 (W.D. Ky., stipulation filed September 24, 2015). Stout has reportedly agreed to stop selling its existing Fire Flask products and will redesign the label for future production. Each party will pay its own attorney’s fees and costs. Additional details on the August 2015 complaint appear in Issue 576 of this Update. See Law360, September 24, 2015. Issue 580
A Kentucky Court of Appeals panel has reversed a trial court determinationthat trespass and nuisance claims filed by residents alleging damage from the ethanol emissions of nearby distilleries are preempted under the Clean Air Act (CAA). Merrick v. Brown-Forman Corp., No. 2013-CA-002048-MR (Ky. Ct. App., decided November 14, 2014). A federal court considering similar issues has also found that state law-based claims are not preempted. That ruling is summarized in Issue 519 of this Update. In the Kentucky state court proceeding, the circuit court dismissed the action, ruling that the “federal Clean Air Act preempts source state air quality tort claims of the type asserted by” the plaintiffs. They allege that the atmospheric ethanol the distilleries emit promotes the growth of “whiskey fungus” that causes a “pervasive black film covering virtually every outdoor surface,” which requires cleaning and power washing to remove. Plaintiff Bruce Merrick owns a company that makes…
A federal court in Kentucky has determined that distillery neighbors may proceed with state law-based tort claims alleging that the facility’s emissions cause “whiskey fungus” to accumulate on their real and personal property. Merrick v. Diageo Americas Supply, Inc., No. 12-0334 (W.D. Ky., Louisville Div., order entered March 19, 2014). Additional details about the lawsuit appear in Issue 444 of this Update. Finding conflicting authority on whether the Clean Air Act (CAA) preempts the plaintiffs’ claims for negligence and gross negligence, temporary and permanent nuisance and trespass, the court carefully analyzed related U.S. Supreme Court, federal court and state court rulings. It concluded that the Third Circuit’s analysis in Bell v. Cheswick Generating Station, 734 F.3d 188 (3d Cir. 2013), and the Sixth Circuit’s in Her Majesty the Queen in Right of the Province of Ontario v. City of Detroit, 874 F.2d (6th Cir. 1989), “capture the prevailing law for…
The Sixth Circuit Court of Appeals has determined that Kentucky has a rational basis for restricting the types of retailers that may be issued licenses to sell liquor and wine, thus ruling that the law does not violate grocers’ equal protection rights. Maxwell’s Pic-Pac, Inc. v. Dehner, Nos. 12-6056, -6057, -6182 (6th Cir., decided January 15, 2014). A state law adopted in 1939 that today prohibits the issuance of a retail drink license to “any business in which a substantial part of the commercial transaction consists of selling at retail staple groceries or gasoline and lubricating oil,” was interpreted in 1982 by the Alcohol Beverage Control Board in a regulation that defines “substantial part” (10% or greater of the monthly gross sales) and “staple groceries” (foods intended for human consumption other than soft drinks, candy, hot foods, and foods prepared for immediate consumption). Grocers challenged the restrictions on equal-protection, separation-of-powers…
A YUM! Brands shareholder has brought a derivative action on behalf of the company against its officers and directors in a federal court in Kentucky, alleging they inflated the company’s growth predictions and failed to promptly inform shareholders that the company purchased chicken with allegedly excessive levels of antibiotics and toxic chemicals for sale in KFC establishments in China; according to the complaint, once the information became public, business in China and the company’s share price plummeted, while the defendants “profited handsomely” from “dumping more than $64.6 million of personally held common stock during the Relevant Period.” Zona v. Novak, No. 13 506 (W.D. Ky., filed May 21, 2013). Alleging breach of fiduciary duty, insider selling and misappropriation of information, and unjust enrichment, the plaintiff seeks damages, injunctive relief, disgorgement, attorney’s fees, costs, and expenses. She claims that management knew as early as 2009 that the chicken purchased in China was tainted…
The U.S. Department of Justice (DOJ) has reportedly indicted a London, Kentucky-based cattle company and its treasurer for falsifying records related to a federal investigation and creating false documents. The charges apparently arise out of a Food and Drug Administration (FDA) investigation to determine whether the company was violating a 2006 court-ordered injunction requiring it to notify buyers if the company sells them animals with medical drugs in their systems. The order also requires the company to “identify the potential cause for the medical drugs in the animals and to refrain from purchasing animals from sellers who supply cattle that contain medical drugs.” Williams Cattle Co. treasurer Pamela Collette allegedly “falsified weekly reports that were supposed to be sent to buyers verifying that the animals sold were drug free, in an attempt to influence the outcome of the investigation. She is also alleged to have created false documents that appeared…
Several Louisville, Kentucky, residents and a business owner have filed a putative class action against Diageo Americas Supply, Inc., alleging that one of its distilling operations has caused an accumulation of “the fungus Baudoinia compniacensis, colloquially referred to as ‘whiskey fungus,’” on their real and personal property. Merrick v. Diageo Americas Supply, Inc., No. 12-334 (W.D. Ky., filed Jun 15, 2012). They allege that the ethanol emissions which occur during the “aging/ warehousing stage of alcoholic beverage production” catalyze and promote the growth of whiskey fungus, a black, sooty substance that purportedly accumulates on metal, vinyl, concrete, and wood and requires “extreme cleaning measures such as a high-pressure washing or the application of caustic chemicals such as chlorine bleach.” These measures allegedly “cause early weathering of surfaces affected by the fungus,” such as gutters, siding, roofing, fencing, and vehicles. Seeking to certify a class of all persons and entities owning or…
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