BRANDING MISTAKES – A JUICY TALE

A new seafood and sushi restaurant, The Juicy Crab in Owensboro, Kentucky made a big branding mistake in choosing its name when it opened for business recently.

BRANDING MISTAKES MAY LAND YOU IN BOILING WATER

According to an Owensboro Times article, almost immediately Facebook users were confused as to whether this Juicy Crab was affiliated with a chain of Juicy Crab restaurants based out of Duluth, Georgia.  The owner of the Owensboro Juicy Crab apparently relied upon the availability of the name for registration with the Kentucky Secretary of State and the advice of a lawyer (presumably not one that specializes in Intellectual Property and Trademark Law) in adopting the name.  Within days of opening, Juicy Crab Owensboro received a cease and desist letter from Juicy Crab Duluth alleging infringement of their U.S. Trademark Registration No. 5,139,205 for THE JUICY CRAB which is registered for use in connection with seafood restaurants.

TRADEMARK INFRINGEMENT AND BRANDING

The owner of a U.S. Trademark has the exclusive right to use the registered name in connection with the goods or services that it is registered for, and for goods or services that are the same or similar.  Trademark infringement occurs when there is a liklihood of confusion as to the source of goods or services.  Several factors affect whether there is a liklihood of confusion.  The two primary factors are the similarity of the marks themselves and the similarity of the goods or services.  In the case of Juicy Crab, the two names are identical and the services provide (seafood restaurants) are also identical.  In addition, there appears to be actual confusion already and the Owensboro restaurant has only been open a short time.  These factors point to an almost certain finding of infringement.

HOW TO AVOID BRANDING TRAPS

So what should a restaurant owner, or anyone opening a new business, do before choosing a name for their business?  You should perform a trademark clearance search before registering the name with the state.  The clearance search will help to ensure that the name is available for use as you intend to use it. You should engage a professional familiar with the resources needed to find all potentially blocking marks for the search.  An experienced trademark attorney should render an opinion based on the search results.  Had Juicy Crab Owensboro followed this path, the registration for Juicy Crab Duluth would almost certainly have been found.  Knowing this, Juicy Crab Owensboro could have chosen a different name and avoided the conflict.  No business owner wants to have to change their brand after the business is up and running.  Customers may be confused by the name change and re-branding, which involves new designs, logos, signage, etc. can be expensive.  It’s far better to properly vet a name BEFORE you hire someone to design your logo and branding.  While there is a cost to doing so, it may just save you money, and your business, in the long run!

MARTIN IP CAN HELP

Are you thinking of starting a business or have started a business and want to ensure that you don’t make the same mistake?  Before you spend money on a logo or designs, let us conduct a trademark clearance search to determine if there are any trademark issues with your business name. To protect your juicy brand and to avoid getting a crabby cease and desist letter,  contact us to help with choosing, protecting and registering your brand.