La Terra Fina USA, LLC v. Resers Fine Foods, Inc.

Background

La Terra Fina USA, LLC alleged that it sells specialty foods, including dips, spreads, and quiches, and has used distinctive packaging and promotional materials since 2017. It called this design its “LTF Trade Dress” and alleged that Reser’s Fine Foods, Inc., whose products include the Stonemill Kitchens brand, used nearly identical packaging for certain dips sold at Costco.

The First Amended Complaint asserted five claims: trade-dress infringement under 15 U.S.C. § 1114; trade-dress infringement under 15 U.S.C. § 1125(a); unfair competition under the Lanham Act; unfair competition under California Business and Professions Code § 17200; and injunctive relief.

Analysis

For the § 1114 claim, the court held that the complaint did not clearly identify the protected trade dress. The complaint described the “LTF Trade Dress” as including features such as a clear round package, cursive branding, block lettering, cream-colored labels or sleeves, vibrant colors, and images of main ingredients. But when discussing the legal claims, it generally referred instead to “LTF Registered Trade Dress.” The registrations described particular packaging, colors, artichokes and jalapeños, and stylized “LA TERRA FINA” wording. The court found these descriptions materially different and could not tell whether La Terra Fina claimed protection for all of its dip products or only particular artichoke-and-jalapeño products.

The court reached the same conclusion about the § 1125(a) trade-dress claim and did not decide Reser’s additional arguments that the complaint failed to allege distinctiveness or nonfunctionality. The court explained that it could not evaluate those issues without a clear description of the trade dress’s scope.

La Terra Fina conceded that its Lanham Act and California unfair-competition claims rose or fell with its trade-dress claims. Because the trade-dress claims were inadequately pleaded, the court likewise treated those claims as inadequately pleaded. The court also held that injunctive relief is a remedy rather than a separate claim and dismissed that claim without prejudice to renewing the request as a remedy for the other claims.

Disposition

The court granted Reser’s motion to dismiss. Because this was the first ruling on the adequacy of La Terra Fina’s allegations, the court granted leave to amend and set December 15, 2023, as the deadline for an amended complaint. The court also set a further case-management conference for April 18, 2024.