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Kraft Sues Cracker Barrel Over Trademark Dispute

2/1/2013

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The Chicago Tribune reports that Kraft Foods, Inc. has sued casual dining chain Cracker Barrel Old Country Store Inc. and its potential retail distributor the John Morrell Food Group to enjoin and nullify their contractual attempt to licensed the trademark "Cracker Barrel" to the distributor for retail distribution.  Kraft trademarked "Cracker Barrel" in 1954 and sees Cracker Barrel Old Country Store's attempts to expand the use of their mark from their restaurant chains to retail grocers as infringing their mark.
Typically these kinds of disputes are first litigated before the Trademark Trial and Appeal Board in a cancellation proceeding.  However, Kraft sued in the Northern District of Illinois and has sought damages that include nullifying the contract between the restaurant chain and its retail distributor because it would encroach on Kraft's longstanding use of its mark in the same market (retail grocery).

Trademarks serve to identify to consumers the origin and quality of the item as well as denote its genuineness.  Trademarks are assigned classification numbers which pertain to certain industrial categories.  Thus, Cracker Barrel may be owned by one entity for clothing while another uses it for food items without conflict.

Here, Kraft claims that it has a senior mark in the same category that the restaurant chain is now attempting to enter.  This would lead, in all likelihood, to the strong potential for customer confusion regarding which is the restaurant chains' products and what are Kraft's.  Thus, Kraft is attempting to quash the contract that attempts to expand the use of the restaurant chain's mark outside of the non-retail sphere.  Since Kraft does not operate any restaurant chains, they have lived in a more or less peaceful coexistence until the restaurant's attempted license for retail distribution.

Nair Law LLC has a great deal of experience handling all aspects of trademark law.  We prosecute and obtain trademarks for our clients in the most efficient manner possible.  We do trademark work on a flat fee basis and handle all office actions necessary to win that mark for our clients.

We also have experience in all phases of TTAB proceedings.  We litigate in the Northern District of Illinois as well and can represent either the mark holder or defend the potential infringer against actions against their use of an alleged infringing mark.  If you own a trademark or desire one, do not hesitate to contact Nair Law LLC to obtain the best trademark services at very reasonable market rates.
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    Rishi Nair owns Nair Law LLC and practices as Of Counsel at Keener and Associates, P.C.

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