Why Trader Joe's is mad at Trader Joe
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The grocery chain won't back down against a crypto exchange.
Driving the news: Trader Joe's has filed a federal lawsuit in California against the decentralized exchange Trader Joe seeking monetary compensation for damages and litigation expenses. It wants the exchange to stop using the grocery store's brand.
What they're saying: "When challenged by Trader Joe's, Defendants committed fraud to obscure that origin story and to prevail in international legal proceedings with Trader Joe's over the domain name, recognizing that the true story would doom their case," attorneys at O'Melveny & Myers wrote on behalf of the grocery company in its suit.
- The complaint presents instances where the decentralized exchange, known as a DEX, uses the possessive "Trader Joe's" in its documentation, exactly copying the grocer's corporate name.
Details: The suit says Trader Joe's tried to get the DEX to rebrand.
- When that failed, the grocery chain asked the World Intellectual Property Organization to step in, but it declined.
- In the suit, the DEX's founders claimed the product had been named after a family member.
- But the attorneys present a comment on a Substack post, where a team member using the pseudonym cryptofish says it was named after the store.
The name fit, he said, because so many DeFi products referred to food in 2020 and 2021 (this is true: Sushi, Tendies, Yam and Pickle were all names of popular DeFi products, though really only the first one has survived).
The intrigue: The plaintiffs also take issue with the use of pseudonyms at the DEX.
- They write, "Employees use aliases not only externally but also within the company. Obscuring their identities both from outsiders and each other in day-to-day business dealings."
In the weeds: "Trader Joe's has asserted a federal dilution claim. This will require Trader Joe's to prove it owns a famous mark, which basically means it is a household name such as Apple, McDonald's, Nike," J. Michael Keyes, a trademark attorney at Dorsey & Whitney, pointed out in a statement to Axios.
Quick take: Trader Joe's argument that its potential customers will be confused by the DEX is a little hard to believe.
- Are you really going to look for unique salsa flavors and find yourself buying UNI tokens?
Go deeper: Trader Joe's #4 on 2023 Axios Harris Poll 100 reputation rankings
