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Nestlé Disputes Potentially Infringing Third Party Trademark Use

Food giant Nestlé has filed a complaint in federal court against a competitor for allegedly infringing upon its LEAN POCKETS® and HOT POCKETS® trademarks.  According to the complaint, a New York company operated by Gigi Anthony (“Anthony”) has been selling and promoting food products under the name “Pizza Pocket,” “Pizza Pockets,” and “Russo’s Gluten Free Pizza Pockets.” Anthony’s food products, which consist of filled-sandwich products, are allegedly infringing upon Nestlé’s HOT POCKETS® and LEAN POCKETS® products and trademarks because Nestlé has long offered a pizza-filled sandwich product under both the LEAN POCKETS® and HOT POCKETS® trademarks.

Nestlé Defends HOT POCKETS® Trademark Held For Over 30 Years

Nestlé also complains that Anthony has knowledge of the marks, using three arguments to support their claim. First, Nestlé notes that Anthony had originally filed an application to register the mark “Pizza Pocket” with the U.S. Patent and Trademark Office in 2016 but abandoned the application.  Secondly, Nestlé argues that its marks have become household names thanks to the popularity of the product as well as Nestlé’s own staunch investment in the brand.  In its filing, Nestlé claims that it has spent billions of dollars in advertising, promoting, and defending the LEAN POCKETS® and HOT POCKETS® trademarks that it has held for over 30 years.  Lastly, Nestlé also notes that it directly contacted Anthony to inform her of her infringing use, having sent cease-and-desist letters to Anthony in August 2017 and again in March 2018.

As such, Nestlé notes that Anthony’s unauthorized use is willful and in bad faith.  And because Anthony’s use is willful and in bad faith, Nestlé argues that it is entitled to damages as a result of Anthony’s continued infringement of its marks and injury to its brand.  Nestlé also seeks a permanent injunction to ban Anthony from making any more of its products because the infringement was in such bad faith.

Protecting the Trademark Portfolio is Key

As the HOT POCKETS® and LEAN POCKETS® brands are so lucrative for Nestlé, Nestlé has a strong incentive to police the marks by suing competitors that are potentially infringing upon the brands.  Although the “pizza flavor” is only one of Nestlé’s many HOT POCKETS® and LEAN POCKETS® flavors, it is important for famous brands to police their marks even if the use is limited to a much smaller market.  While many may see this dispute as David versus Goliath, the onus is often on Goliath to protect the integrity of its brand.  Trademark portfolios may be protected through utilizing trademark watch services, hiring outside trademark enforcement counsel, and other means to uncover forms of potential misuse anywhere in the world.

For more information on this topic, please visit our Trademark Enforcement service page, which is part of our Trademark Practice.

About the Firm:

Klemchuk LLP is a litigation, intellectual property (IP) and transactional law firm, located in Dallas, TX.  The firm offers comprehensive legal services including litigation and enforcement of all forms of IP as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides a wide range of technology, Internet, e-commerce, and business services including business planning, formation, and financing, mergers and acquisitions, business litigation, data privacy, and domain name dispute resolution.  Additional information about the trademark law firm and its trademark attorneys may be found at www.klemchuk.com.

Klemchuk LLP hosts Culture Counts, a blog devoted to the discussion of law firm culture and corporate core values with frequent topics about positive work environment, conscious capitalism, entrepreneurial management, positive workplace culture, workplace productivity, and corporate core values.