New York City restaurants are subject to intense competition. These businesses work hard to establish and maintain their good reputations. Why should anyone else benefit from that if they have not put the work in? This is at the heart of a recent lawsuit filed by Katz’s Delicatessen of Houston Street Inc.
The famed Katz’s Deli has been serving genuine Jewish food in New York City for over 125 years. The establishment is a landmark and has been featured in many movies and television shows. Earlier this year, Katz’s Deli decided to do something about a Florida restaurant that was operating under a very similar name. Katz’s Deli of Deerfield Beach, owned by Pump-A-Nickel Corp. Inc., is also selling Jewish foods, which makes it seem even more like the two restaurants are related in some way. In the spring, Katz’s Deli sent a cease and desist letter to Pump-A-Nickel which they claim was ignored. Katz’s Deli had no choice but to file a lawsuit against Pump-A-Nickel alleging trademark infringement and dilution (lessening the uniqueness of a trademark). They claimed that Pump-A-Nickel was trying to unlawfully capitalize on their famous reputation and that this resulted in at least $1 million dollars in damages. Katz’s Deli also argued that Pump-A-Nickel had engaged in cyber squatting by using the domain name Katzs-deli.com.
The parties came to an amicable resolution in a short amount of time. Just a few months after the lawsuit was filed the parties have signed a settlement agreement including that Pump-A-Nickel is prohibited from any behavior that might lead others to believe that the businesses are related and any behavior that might appropriate the reputation and goodwill of Katz’s Deli. Both parties signed the settlement agreement and no damages were assessed.
The DiPasquale Law Group has protected the rights of countless New York City restaurants in a variety of situations. If you are a restaurant owner or are attempting to open a restaurant and you feel your rights have been violated, call us at (646) 383-4607 for a consultation today.