Happy Hour Drinks Take on Happi Co.
Big Beverage Inc. and Happy Hour Drinks Company Inc. filed a suit against Michigan-based cannabis drink maker Happi Co. on Monday, alleging the brand has infringed on three trademarks owned by Big Beverage and licensed to alcoholic drink maker Happy Hour. The complaint, filed in Michigan district court, states that the marks on Happi Co.’s fruit-flavored cannabis-infused sparkling water are “confusingly similar” to the tequila-based seltzer product produced by Happy Hour Drinks.
Big Beverage and Happy Hour Drinks claim these similar marks have led to confusion in the marketplace and unfair competition. The complaint primarily focuses on similarities between the white-colored, “It’s Happi Hour” text displayed towards the top of the cannabis beverage can and its similarity to Big Beverage’s Happy Hour text, citing the “colorable imitation” caused Happy Hour “to lose control of the goodwill associated with its marks.”
Happy Hour Drinks has marketed and sold fruit-flavored hard seltzer beverages licensed under Big Beverage’s trademark since 2013. The company also owns the marks for wine, distilled spirits and beer. Both companies primarily sell their products online through their respective websites, as well as on social media and third-party e-commerce platforms.
Happi Co. beverages are sold and distributed to dispensaries in Michigan and also available for home delivery through cannabis e-commerce platform Lantern. The complaint also notes that Happi Co. purchased the rights to the website domain name happihourdrink.com in February in relation to the alleged infringement. The plaintiff operates under a similar domain name, drinkhappyhour.com.
According to the complaint, Big Beverage sent Happi Co. a cease and desist letter shortly after it was made aware of the brand by its co-packer. The company also requested a range of documents in relation to the infringing products including copies of all sales receipts. Happi Co. responded to the letter immediately, claiming they would get back to the plaintiff, however the complaint states the defendant then refused to cooperate and provide the requested documentation.
Big Beverage Inc. and Happy Hour Drinks are asking the court for an injunction to stop Happi from selling products that violate its trademarks, and to be awarded all profits made from the sale of the cannabis products, as well as all attorney and court fees.
The suit comes only two weeks after a New York judge sided with cold brew coffee maker Rise Brewing Co. in a trademark infringement suit against PepsiCo, claiming the beverage giant’s MTN DEW Rise drink had hurt Rise Brewing’s business and “demonstrated irreparable harm. PepsiCo has since dropped the word Rise from the product line.
Neither parties could be reached for comment.
Nestlé Settles Trade Dress Infringement Suit With Danone
Nestlé USA and Danone North America reached a settlement this week over a trademark dispute between the former’s Coffee Mate Natural Bliss creamer brand and Danone’s Silk.
According to documents filed with the U.S. District Court for the Eastern District of Virginia, Danone had recently released an updated look for its Silk creamer line with the intent “to copy and mimic the elements of Nestlé’s packaging design.” The complaint states that Silk packaging copied the white cap and bottle body, the purple band on the bottle and the placement of the brand name and “flavor icon.”
“Danone’s almond creamers compete directly with Nestlé’s Natural Bliss creamers, are sold through the same retailers … and are even sold on the same shelves,” the complaint states. “Danone’s and Nestlé’s creamers are also advertised the same ways, including via
in-store displays, online, and through social media”
Nestlé sent Danone letters demanding it stop selling its products with the “use of unauthorized packaging” in August 2020 and again that October, according to the filing.
Danone’s motion to dismiss the suit in June was denied, with Nestlé asking for a jury trial. However, this week Nestlé filed a stipulation of dismissal with prejudice, meaning the case will be permanently closed following the settlement agreement, and told the judge the dispute has been resolved.
The resolution agreement and financial details of the settlement have not been released.
Founder of Tequila Startup Pleads Guilty to Securities Fraud Scheme
Joseph Cimino pled guilty to one count each of securities and wire fraud last week after prosecutors found he defrauded a group of 25 investors out of almost $1 million between 2014 and 2018 by lying about the financial state of his startup tequila company. One of those investors also found the New York businessman fabricated his list of financial backers with “phantom members” to lure in additional support for the company.
The name of the tequila company has not been confirmed in the reports filed by the FBI, however, Cimino’s LinkedIn profile remains active and states he is the founder of “a new Tequila brand, 6 Degree Tequila launched Q3 2015.” Prior to launching the business, Cimino spent over 15 years as a hospitality executive, according to his profile.
Investors in the company and prosecutors allege that Cimino diverted almost half of the funds he raised into his personal bank account, spending it on food, travel and other non-business related expenses. Despite pleading guilty, Cimino has maintained that he did not use investor’s money on personal expenses.
An FBI investigation uncovered that Cimino consistently lied about the company’s expected sales. According to a report to investors in 2016, Cimino said he had ordered 20,000 bottles of tequila from a Mexican distillery which he predicted would generate $1.2 million in sales that year. However, investigators could not find evidence that Cimino had ever placed any orders from the distillery named in the document.
The investigation concluded that the company was essentially “insolvent.” Cimino is scheduled to be sentenced February 18, 2022 before U.S. District Judge Vincent Briccettti in New York.