American supermarket chain Trader Joe’s has filed a complaint against Avalanche Trader Joe’s DEX for misuse of its trademark. What are the similarities between the two companies beyond their names?
Trader Joe’s supermarket chain sues Trader Joe’s DEX
The flagship application of the Avalanche (AVAX) ecosystem, the decentralized exchange (DEX) Trader Joe, is being sued in the USA by a supermarket chain called Trader Joe’s. As the two names suggest, the dispute concerns the use of the trademark.
Trader Joe’s believes that DEX is using its image to capitalize on its reputation. In addition, the brand also accuses Trader Joe’s of using its mascot, seeing unmistakable similarities in the character:
” The defendants operate a cryptocurrency platform called “Trader Joe” and use the domain name traderjoexyz.com. The defendants named the platform “after the supermarket”, none other than Trader Joe’s, and developed a narrative around a fictional “Trader Joe” who sells his crops on the local market, evoking the Trader Joe business and brand. An image of “Trader Joe” wearing a red cap (the famous color of the Trader Joe’s logo, store motifs and memorabilia) serves as the platform’s avatar. “
After all, a Google search shows that the two brands’ websites are neck-and-neck, which could indeed cause confusion:
Thus, Tarder Joe’s demands in its complaint that DEX Trader Joe cease using its brand name in its communications and all of its operations. The company is also seeking damages and reimbursement of its legal costs.
According to our colleagues at Decrypt, the supermarket chain had already taken legal action last year before the United Nations’ World Intellectual Property Organization (WIPO), but this was unsuccessful.
To date, DEX ranks 3rd among decentralized finance applications (DeFi) on Avalanche, with a total locked value (TVL) of $49 million. As for the platform’s token, JOE is trading at just over $0.23 at the time of writing, in 266th place in the CoinGecko rankings.
While the complaint was filed on October 5, the DEX teams do not appear to have reacted publicly to this legal action.