E&J Gallo Winery v. Gallo Cattle Company Case Brief Summary | Law Case Explained

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  • Опубликовано: 14 окт 2024
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    E. & J. Gallo Winery v. Gallo Cattle Company | 967 F.2d 1280 (1992)
    One of the burdens of owning a strong trademark is the need to defend it against infringement, as illustrated in the wine family feud E and J Gallo Winery versus Gallo Cattle Company.
    Joseph and Susie Gallo immigrated to California and bought several vineyards. After some years of success, a financial crisis struck during the Depression. Joseph killed himself and Susie.
    Their two oldest sons, Ernest and Julio, formed the company E and J Gallo Winery. They built their business into the best selling brand of wine in the United States. The winery acquired eleven registered trademarks containing the name Gallo.
    In the nineteen seventies, the winery sued a salami company called Gallo Salame for trademark infringement. The parties agreed to a settlement under which Gallo Salame assigned its registered trademark to Gallo, and Gallo licensed it back to Gallo Salame, which continued to sell salami and cheese under the Gallo name.
    The youngest Gallo son, Joseph, was only thirteen when his parents died. As an adult, he set up a dairy business called Gallo Cattle Company. He started selling cheese under the name Joseph Gallo.
    Ernest and Julio asked Joseph to stop using the name Gallo. After two years of unsuccessful negotiations, Ernest and Julio sued Joseph for trademark infringement.
    Joseph argued, among other things, that the winery lacked a valid ownership interest in the Gallo Salame trademark and without this, its wine marks couldn’t support a judgment that also applied to cheese.
    The district court ruled for Ernest and Julio, ordering Joseph to stop using the Gallo name on his retail packages of cheese. Joseph appealed to the Ninth Circuit.
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