A federal judge has criticized Trader Joe’s for filing a “meritless” trademark claim against its workers’ union and has ordered the grocer to cover the union’s legal fees as a deterrent against similar litigation. The company had claimed that Trader Joe’s United, a new union representing employees at four stores, violated Trader Joe’s trademarks through its name and logo. However, U.S. District Judge Hernán D. Vera dismissed the lawsuit in January, finding that Trader Joe’s had attempted to use the legal system against its own workers. In a new order issued Tuesday, Vera stated that Trader Joe’s should have to pay more than $112,000 in attorney’s fees for the union, emphasizing the lack of substance in the trademark claim.
Vera expressed his belief that Trader Joe’s would not have filed the trademark claim if it wasn’t facing a union organizing campaign. He emphasized the importance of discouraging employers from bringing baseless claims against unions they are challenging, highlighting the need to protect workers’ rights. A spokesperson for Trader Joe’s could not be reached for comment at the time. Union attorney Seth Goldstein welcomed the order, stating that it should serve as a warning to other companies considering similar actions. Goldstein highlighted that this ruling sends a message that using trademark law to hinder workers from organizing will not be tolerated.
Trader Joe’s has appealed Vera’s dismissal of the case from January, and it is possible that the company could pursue a stay against the order to pay the union’s attorney fees. However, such litigation could result in an increase in legal costs for the company, further emphasizing the implications of pursuing frivolous claims against unions. Trader Joe’s is not the only company to engage in trademark litigation against a staff union, with other companies like Medieval Times and Starbucks also pursuing similar actions. In all cases, the unions criticized the claims as attempts to intimidate them and burden them with costly legal battles.
The lawsuit brought by Trader Joe’s against the union in July claimed that the items being sold in the union’s online store, such as a reusable shopping bag with “Trader Joe’s United” printed on it, could confuse customers and harm the grocer’s reputation. However, Vera found it unlikely that customers would mistake the union’s merchandise for that of the grocer, especially since it could only be purchased from the union’s online store. In his order on Tuesday, Vera dismissed the company’s concerns about brand reputation, pointing out that the union’s use of the name “Trader Joe’s” was the only similarity, with the logos themselves being distinctly different.
Overall, the judge’s ruling serves as a victory for workers’ rights, highlighting the importance of protecting employees’ ability to organize and advocate for their interests. The order to pay the union’s legal fees serves as a deterrent against companies pursuing baseless claims against unions. The case also sheds light on the misuse of trademark litigation to intimidate workers and prevent them from organizing. Moving forward, this ruling may set a precedent for holding companies accountable for frivolous legal actions against unions, thereby ensuring that workers are able to exercise their rights without fear of retaliation or harassment.
