Things aren't always sweet in the
candy industry.
That much is evident from a
wide-ranging lawsuit The Hershey Company just filed in federal court, accusing
a importer of infringing its trademarks for the candy maker's best-known
products.
Essentially, Hershey claims LBB
Imports LLC is bringing in foreign-made candy with packaging and labeling that
mimics that of Hershey's well-known brands - Reese's, York, Malteser, Cadbury,
Kit Kat and Rolo.
LBB's actions, which continue
despite protests by Hershey, are confusing consumers and illegally eating into
Hershey's multi-billion share of the candy market, according to the lawsuit
filed in U.S. Middle District Court in Harrisburg.
Hershey also accuses LBB of
breaching earlier agreements to stop infringing on its famous trademarks. The
importer, which has offices in California and New Jersey, has even started
marketing a new catalog with its allegedly infringing products, the suit
states.
Hershey doesn't list a specific
damage amount in the suit, but is is seeking triple damages from LBB, based on
an accounting it asks the court to order of the profits the importer has made
through the alleged infringements.
The stakes could be quite high,
given the profits Hershey lists in the suit for its own products. Sales of the
Reese's line alone have exceeded $7 billion in the U.S. in the last five years,
Hershey reported, while the Kit Kat and Cadbury products have had sales of
around $1 billion and $500 million during the same period. Yearly sales of York
and Rolo products each exceed $100 million annually, according to the suit.
Hershey controls all those marks
either directly or under license.
LBB is violating those
protections both by word and appearance, Hershey contends. LBB's Cadbury, Rolo
and Kit Kat imports bear the same name as Hershey's products, according to the
suit while the LLB's Yorkie and Maltesers products are only slight name
variations from Hershey's York and Malteser lines.
Packaging color schemes also are
too close to be legal, Hershey contends. For example, it argues, packaging of
LBB's Toffee Crisp product bears the same licensed "Orange Mark"
color scheme of Hershey's Reese's line.
Hershey is asking Judge John E.
Jones III for an order blocking continued alleged infringement. It wants the judge
to direct LBB to turn over its products for destruction and pay for
"corrective advertising" to address the harm Hershey contends that
LBB has caused to its marketing efforts and sales.
The Hershey Co. is no stranger to
trademark infringement battles and is known for fiercely protecting those
marks.
The firm has waged such battles
with arch rival Mars Inc., with candidates forLancaster County sheriff and
the Maryland state Senate who used images similar to company products in their
campaigns, with a Michigan furniture company and with Williams-Sonoma over a
cake pan design that Hershey claimed looked too much like its signature
chocolate bar.
http://www.pennlive.com/midstate/index.ssf/2014/08/not_so_sweet_the_hershey_co_la.html
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