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

Background

La Terra Fina USA, LLC brought claims against Reser’s Fine Foods, Inc. for trade dress infringement and unfair competition. Trade dress generally refers to the visual appearance and packaging of a product. The parties manufacture and sell specialty foods, including dips, spreads, and quiches, through the same retail channels.

The court had previously granted Reser’s motion to dismiss for failure to state a claim, while allowing La Terra Fina to amend its complaint. La Terra Fina then filed a Second Amended Complaint, and Reser’s filed another motion to dismiss on nearly identical grounds.

Registered Trade Dress Claims

La Terra Fina alleged that Reser’s infringed two federally registered trade dress marks covering packaging for its artichoke and jalapeno dips. The alleged similarities included the packaging’s light background, color palette, cursive house-brand wording, and depictions and placement of artichokes.

The court concluded that these allegations were sufficient to state trademark-infringement claims under Section 1114 of the Lanham Act for two products: La Terra Fina’s Artichoke and Jalapeno Dip 2-pack packaging, Registration No. 7072151, and its 31-ounce Artichoke and Jalapeno Dip, Registration No. 7072149. The court did not find sufficient allegations for a claim involving La Terra Fina’s “dip products” generally because the complaint did not identify the other products allegedly involved.

Unregistered Trade Dress and Unfair Competition Claims

La Terra Fina also alleged infringement of an unregistered trade dress involving features such as cursive brand wording, a clear round package with a clear lid, capitalized product descriptions, a light label or sleeve background, vibrant colors, and depictions of the main ingredients.

The court held that La Terra Fina plausibly alleged infringement involving its artichoke and jalapeno dips and Reser’s artichoke dip. But the complaint did not identify other La Terra Fina products bearing the alleged trade dress or other Reser’s products that allegedly infringed it. La Terra Fina also acknowledged at oral argument that the complaint did not identify or include images of Reser’s other products.

La Terra Fina pleaded federal and California unfair-competition claims. At oral argument, it clarified that the claims were based only on alleged infringement of its unregistered trade dress under Section 1125(a). Because the related Section 1125(a) infringement claim could proceed for the artichoke and jalapeno products, the derivative unfair-competition claims could proceed on that basis as well. The unfair-competition claims were dismissed as to other products.

Injunctive Relief

The court dismissed La Terra Fina’s separate claim for injunctive relief. It explained that an injunction is a remedy rather than a separate claim or cause of action. The court noted that La Terra Fina conceded in a footnote that this claim should not have been included in the complaint.

Leave to Amend and Disposition

The court denied further amendment of the infringement claims involving La Terra Fina’s other dips and spreads. La Terra Fina had already amended its complaint twice, had not supplied details it previously indicated it could provide, and did not argue at oral argument that it should receive another opportunity to amend. The court concluded that further amendment would be futile.

Judge Jacqueline Scott Corley granted in part and denied in part Reser’s motion to dismiss. The motion was denied as to La Terra Fina’s claims based on infringement of its artichoke and jalapeno dips by Reser’s artichoke dip, and as to the related unfair-competition claims. The motion was otherwise granted without leave to amend.