A federal appeals court on Monday revived a Trader Joe’s lawsuit accusing a fledgling employee union of trademark infringement for selling t-shirts, buttons, mugs and reusable tote bags featuring the grocery chain’s distinctive red typeface and logo.
In a 3-0 decision, The 9th U.S. Circuit Court of Appeals in Pasadena, California said a trial judge was too quick to dismiss the lawsuit against Trader Joe’s United, which said it was created in 2022 and has four local chapters.
Circuit Judge Gabriel Sanchez said the strength of the Trader Joe’s name, the chain’s own sale of tote bags, and the “strikingly similar” marks featuring the same red color, similar fonts and concentric circles could confuse consumers.
“This is not one of the rare trademark infringement cases in which there is no pl