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Choke Canyon

Buc-ee’s and Choke Canyon settle

Our long animal mascot-based intellectual property litigation nightmare is finally over.

Popular Texas convenience store chain Buc-ee’s and Choke Canyon, a competing store that was found by a federal jury to infringe Buc-ee’s beaver logo, agreed Thursday to dismiss the lawsuit, meaning the damages portion of the trial won’t take place.

The damages portion of the trial was slated to begin in May 2019, but according to court records the parties attended mediation on Oct. 9 and entered a settlement agreement resolving all outstanding claims. On May 22, jurors found in favor of Buc-ee’s on all claims after hearing four days of testimony, agreeing Choke Canyon’s logo of a cartoon alligator wearing a cowboy hat was too similar to Buc-ee’s logo of a cartoon beaver wearing a baseball cap.

Charles Hanor, who represents Choke Canyon, told Law360 on Thursday the terms of the settlement are confidential and declined to comment further. Buc-ee’s general counsel, Jeff Nadalo, issued a statement to Law360 that the settlement meant Choke Canyon “surrendered its federal trademark registration of the offending logo, removed all offending logos and products and has paid substantial damages to Buc-ee’s.”

In the joint stipulated dismissal filed by the parties in federal court in Houston on Thursday, the stores told the court they had agreed to dismiss with prejudice all remaining claims.

“The permanent injunction the court entered on Aug. 3, 2018 will remain in full effect,” the brief filing reads. “Buc-ee’s and Choke Canyon each shall bear their own costs, expenses and attorneys’ fees.”

That injunction, issued by U.S. District Judge Keith P. Ellison, bars Choke Canyon from using its cartoon alligator logo on store-branded products, in advertising, or in any other capacity — including color and black-and-white versions of the logo, and versions of the logo with and without Choke Canyon text surrounding the mascot.

Hanor had told Law360 at the time it would cost Choke Canyon more than $100,000 to comply with the judge’s order. Choke Canyon has already put to use a new logo, this one featuring a cartoon cowboy who is winking and wearing a cowboy hat.

See here, here, and here for some background. For you law nerds, the case is Buc-ee’s Ltd. v. Panjwani et al., case number 4:15-cv-03704, in the U.S. District Court for the Southern District of Texas. Choke Canyon had been planning to appeal, based on some evidence the judge didn’t allow and other factors, but in the end decided this was the better way to go. I wish them the best of luck in their non-animal-logo future.

Buc-ee’s wins in court

That was quick.

After about six hours of deliberation, a jury in Houston found Tuesday that Choke Canyon company’s alligator logo violated state and federal trademark law, infringing on the pre-established Buc-ee’s beaver mark established by the popular Texas road stop chain.

“It’s absolutely not about a beaver versus an alligator,” said Jeff Nadalo, general counsel for Buc-ee’s Ltd. “There are more than 10 similarities between the two marks that we presented to the jury in this case.”

[…]

The judge asked the lawyers to meet and try to hammer out an injunction on how to deal of trademarked materials that violate the jury’s finding.

The damages phase of the trial remains pending.

See here for the background, and here for a later version of the story. Six hours of deliberation for a week-long trial is pretty darned quick. I may have been skeptical based on my view of the two logos, but I wasn’t there in court and neither were you. We’ll see what the damages look like.

Beaver v alligator

It’s a roadside rest stop animal logo legal smackdown, and it’s off to the jury.

Buc-ee’s, a popular chain of Texas pit stops, fought hard to build its reputation and wants a San Antonio-based competitor to stop “riding its coattails” by using a logo that confuses highway travelers into pulling off at a rival business, the company’s lawyer told jurors in his closing statement Monday in Houston.

“We don’t want to put Choke Canyon out of business,” said Buc-ee’s lawyer, Tracy Richardson, poised between poster boards displaying similarly colored T-shirts, beer koozies and plastic grocery bags with the animal logos from the two rival chains. Buc-ee’s just wants Choke Canyon’s owner to curtail what it views as an unfair ad campaign: “We just want him to stop using the logo.”

Richardson and the lead attorney for Choke Canyon offered closing pitches to jurors before they began deliberations Monday afternoon, following a week of testimony about the dueling roadside travel centers in a federal trademark case before U.S. District Judge Keith P. Ellison. The jury of three women and nine men will resume deliberations Tuesday.

The lawsuit brought by mega-chain Buc-ee’s claims that Choke Canyon’s alligator logo, posed against a circular yellow backdrop, is too similar to the buck-toothed beaver that is synonymous with its 33 gas stops. The Buc-ee’s chain, headquartered in Lake Jackson, also contends that Choke Canyon illegally mimicked its in store offerings, including friendly service, ample stock and plentiful, clean bathrooms.

[…]

[Defense attorney Charles] Hanor said the two trademarks are quite different, as are the offerings. The alligator is advertising a chain that specializes in barbecue, he told jurors, noting that Buc-ee’s only complained in court about its road stop competitor when Choke Canyon sought to open a chain in New Braunfels, where Buc-ee’s also had operations.

Trademark law doesn’t give either company a hold on any one attribute of their logo. Instead, the jury will consider the strength of Buc-ee’s logo, the similarity between the two logos and the stores’ product lines and whether Choke Canyon set out to or actually did confuse customers with the overlap.

It’s a balancing act, the judge explained in his directions to the jury. The goals of trademark law are to protect the public from being misled, to protect the rights of businesses to identify themselves in public and to protect the public interest in fair competition, Ellison said.

See here for some background. Earlier stories from the trial are here, here, and here. As I said when news of the lawsuit first appeared, I think Buc-ee’s is stretching it here. Maybe it’s because I’ve never seen a Choke Canyon, but I don’t see how a reasonable person could confuse the two. That’s up to twelve jurors here in Houston to decide. I wish them luck.

Buc-ee’s files another logo lawsuit

That’s one litigious beaver.

Buc-ee’s has sued the San Antonio-based operator of Choke Canyon Travel Center for promoting its barbecue and other travel essentials with its grinning, lip-licking, hat-wearing, finger-pointing alligator. The alligator sits in a circle -much like Buc-ee’s beaver — and adorns a wide range of products, from sweet and salty snacks to bags of ice to tee shirts.

The alligator, however, doesn’t have a name.

[…]

The case, which was filed late last year, alleged that the Choke Canyon convenience store, along with Choke Canyon Bar-B-Q and Choke Canyon Exxon, infringed on Buc-ee’s trademark by copying the look and feel of the roadside retailer, which has grown to 27 locations across Texas. Choke Canyon has three locations in and around San Antonio. Neither the owner of Choke Canyon or his lawyer returned calls seeking comment.

Besides the logos, Buc-ee’s alleges that Choke Canyon copied several other features, including oversized bathrooms, numerous fuel pumps, ample parking and a similar looking soda station. Buc-ee’s first learned of its competitor in December when it began receiving inquiries from vendors and customers about the Choke Canyon Travel Center, according to the lawsuit.

U.S. District Judge Keith Ellison set the trial for early next year.

Buc-ee’s won its previous logo lawsuit, against a company that also used a beaver in its branding. I get the zeal to protect these images, but I gotta say, this one seems like a stretch to me. We’ll see what happens in court. Whatever does happen in that case, I’d prefer Buc-ee’s stick to suing competitors and suppliers, and not former employees who will be impoverished by the experience. Don’t make me feel dirty about using your clean bathrooms, Buc-ee’s.