E & J Gallo Winery (Gallo) has sued Grenade Beverage LLC (Grenade) for trademark infringement seeking an injunction as well as monetary damages. Gallo owns federal trademark registrations for GALLO covering wines. Gallo also utilizes a rooster on its wine label. In addition to wine, Gallo sells other alcoholic beverages such as brandy, tequila, vodka, rum and gin.
Grenade is promoting EL GALLO as a mixer for alcoholic beverages, namely, tequila, and also utilizes a rooster image on its label. Grenade has also applied to register the mark EL GALLITO covering beverages, namely, carbonated and non-carbonated energy or sports drinks. Gallo has included claims against this application in its Complaint and had previously filed an opposition proceeding at the Trademark Trial and Appeal Board (TTAB) opposing Grenade's registration of the mark. Due to the long and continuous use, extensive advertising and promotion of the GALLO marks, Gallo is contending that Grenade is using the EL GALLO and EL GALLITO marks with full knowledge of Gallo's marks borrowing from the goodwill, reputation and fame of the GALLO marks. Given what appears to be the solid legal footing of Gallo's Complaint, it will be interesting to see just how Grenade crows back. We'll provide updates as the case proceeds.
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