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`Civil Action No. _______________
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`JURY DEMAND
`
`KRISPY KRUNCHY FOODS, LLC
`d/b/a KRISPY KRUNCHY
`CHICKEN,
`
`
`
`
`
`MAAZ ENTERPRISES LLC
`AND AFSANA GAS INC,
`
`
`
`
`Plaintiff,
`
`
`
`v.
`
`
`
`Defendants.
`
`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 1 of 30
`
`UNITED STATES DISTRICT COURT
`FOR THE NORTHERN DISTRICT OF GEORGIA
`ATLANTA DIVISION
`
`
`
`COMPLAINT
`
`Plaintiff Krispy Krunchy Foods, LLC d/b/a Krispy Krunchy Chicken (“Krispy
`
`Krunchy”), located at 1826 Sterkx Road, Alexandria, Louisiana 71301, by and
`
`through its undersigned attorneys, hereby alleges by way of this Complaint against
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`Defendants Maaz Enterprises LLC and Afsana Gas Inc, both operating at 2710
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`Bouldercrest Road, Atlanta, GA 30316 (“Defendants”), the following:
`
`NATURE OF THE ACTION
`
`This is a civil action for trademark counterfeiting, infringement,
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`1.
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`dilution, and false designation of origin under the Lanham Act, 15 U.S.C. §§ 1114
`
`and 1125, and for deceptive trade practices, trademark infringement and unfair
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`competition under the laws of Georgia.
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`
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`
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 2 of 30
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`
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`THE PARTIES
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`Plaintiff Krispy Krunchy is a Louisiana limited liability company
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`2.
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`having its principal place of business at 1826 Sterkx Road, Alexandria, Louisiana
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`71301.
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`3.
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`On information and belief, Defendant Maaz Enterprises LLC is a
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`Georgia limited liability company having its principal place of business at 2710
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`Bouldercrest Road, Atlanta, GA 30316.
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`4.
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`On information and belief, Defendant Afsana Gas Inc is a Georgia
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`corporation having its principal place of business at 2710 Bouldercrest Road,
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`Atlanta, GA 30316.
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`JURISDICTION AND VENUE
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`5.
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`This Court has subject-matter jurisdiction over Krispy Krunchy’s
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`federal claims pursuant to 28 U.S.C. §§ 1331, 1338, and 15 U.S.C. § 1121.
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`6.
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`This Court has supplemental jurisdiction over Krispy Krunchy’s claims
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`arising under Georgia state law pursuant to 28 U.S.C. § 1367(a) because those claims
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`are so related to Krispy Krunchy’s federal claims that they form part of the same
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`case or controversy and derive from a common nucleus of operative fact.
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`7.
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`This Court has personal jurisdiction over Defendants at least because
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`Maaz Enterprises LLC and Afsana Gas Inc are entities created and existing under
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`- 2 -
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 3 of 30
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`
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`Georgia law, have their principal place of business in this District, and the acts
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`complained of herein occurred in this District.
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`8.
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`Venue is proper in this District pursuant to 28 U.S.C. § 1391(b).
`
`
`
`FACTUAL BACKGROUND
`
`Krispy Krunchy’s Business and Longstanding Use of the Distinctive
`KRISPY KRUNCHY Marks
`
`Krispy Krunchy operates one of the fastest-growing, convenience-
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`9.
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`store-based, quick-service fried chicken concepts in the nation.
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`10. Krispy Krunchy was founded in Louisiana in 1989. Krispy Krunchy’s
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`principals boast a combined seventy-plus years of experience in the convenience
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`store / food service industry.
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`11. Krispy Krunchy provides food products to convenience stores (“C-
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`Stores”), quick-service restaurants (“QSRs”), and grocery stores, among other types
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`of retail channels. Krispy Krunchy’s C-Stores, QSRs, and supermarkets are referred
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`to as “Operators.”
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`12. The heart of Krispy Krunchy is the proprietary chicken it provides for
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`its Operators under the brand “KRISPY KRUNCHY.” Krispy Krunchy also
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`provides a full line of related food products, including, fish, shrimp, mashed
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`potatoes, french fries, beans, biscuits, biscuit sandwiches, breakfast sandwiches,
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`- 3 -
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 4 of 30
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`burritos, empanadas, gravy, dipping sauces, macaroni and cheese, rice and
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`jambalaya.
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`13.
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`In 1993, Krispy Krunchy adopted a Barn and Sun logo and has used
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`variations of this logo (as shown below) since that time:
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`
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`
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`14. Krispy Krunchy has been using the mark KRISPY KRUNCHY, both
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`alone and in conjunction with the Barn and Sun logo, in connection with its goods
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`and services continuously since at least as early as 1993.
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`15. Krispy Krunchy offers a program through which it allows Operators to
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`market and sell Krispy Krunchy food products (the “Krispy Krunchy Program”).
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`16. Under the Krispy Krunchy Program, Operators agree to (among other
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`things):
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`Buy and use Krispy Krunchy proprietary products;
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`
`
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`Maintain the Krispy Krunchy Program as specified during on-
`site training;
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`
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`Buy all related food service products from Krispy Krunchy’s
`designated supplier; and
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 5 of 30
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`Accept new products introduced by Krispy Krunchy from time
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`to time.
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`
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`17. Under the Program, Krispy Krunchy (among other things) agrees to:
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`Provide its Operators approximately one week’s training at the
`Operator’s location at Krispy Krunchy’s expense;
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`
`
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`Schedule retraining at the Operator’s request and according to
`trainer availability;
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`
`
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`Provide assistance with operational problems, such as gross
`profit, volume, labor, etc.; and
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`
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`Grant geographic protection from other Operators wanting to
`participate in the Krispy Krunchy Program in a nearby location.
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`18. Krispy Krunchy has distinguished itself from its competitors by
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`offering the only chicken program of its kind with proprietary chicken recipes and
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`preparation. Indeed, Krispy Krunchy holds out its KRISPY KRUNCHY chicken
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`and other branded products to the industry and its customers as “proprietary.”
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`19.
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`In particular, Krispy Krunchy’s chicken is marinated before it is
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`delivered to Krispy Krunchy’s Operators. Krispy Krunchy’s proprietary recipes and
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`preparation results in a distinctive Cajun flavor that not only causes its chicken to
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`taste better, but also results in a longer shelf life before cooking.
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`20. Krispy Krunchy’s signature chicken recipe was developed in its
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`founder’s own small C-Store chain.
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 6 of 30
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`21. Around 2006, Krispy Krunchy began to expand the scope of the market
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`for its KRISPY KRUNCHY-branded chicken products to a national scale.
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`22. Today, KRISPY KRUNCHY-branded chicken is sold in more than
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`2,600 retail locations throughout 47 states, including numerous locations throughout
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`Georgia and this District.
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`23. Krispy Krunchy has taken steps to protect its KRISPY KRUNCHY
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`trademarks in connection with its products and services and owns the following
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`federal registrations, among others:
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`Trademark
`
`
`Reg. No.
`
`Reg. Date
`
`Goods
`
`4,021,369
`
`
`
`
`
`
`
`KRISPY KRUNCHY
`CHICKEN
`
`5,090,363
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`KRISPY KRUNCHY
`
`5,268,715
`
`9/6/2011
`
`(First use
`in
`commerce:
`3/1/1993)
`
`11/29/2016
`
`(First use
`in
`commerce:
`3/1/1993)
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`8/22/2017
`
`(First use
`in
`commerce:
`3/1/1993)
`
`Prepared meals consisting
`primarily of meat, fish,
`poultry, or vegetables; fast
`food restaurants
`
`Prepared meals consisting
`primarily of meat, fish,
`poultry, or vegetables;
`seasoned coating for meat,
`fish or poultry; fast food
`restaurants
`Prepared meals consisting
`primarily of meat, fish,
`poultry, or vegetables;
`seasoned coating for meat,
`fish or poultry; fast food
`restaurant services featuring
`meals consisting primarily of
`meat, fish, shrimp or poultry.
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 7 of 30
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`Trademark
`
`Reg. No.
`
`Reg. Date
`
`
`6,171,145
`
`
`10/06/2020
`
`(First use
`in
`commerce:
`5/21/2020)
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`
`
`
`
`KRISPY KRUNCHY
`CHICKEN GRAB-N-
`GO
`
`
`6,171,146
`
`
`10/06/2020
`
`(First use
`in
`commerce:
`5/21/2020)
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`- 7 -
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`Goods
`Prepared meals consisting
`primarily of meat or poultry;
`fried chicken; poultry;
`mashed potatoes; French
`fried potatoes; processed red
`beans; corn dogs; Biscuits;
`biscuit sandwiches; breakfast
`sandwiches consisting
`primarily of biscuits, egg,
`sausage, bacon and cheese;
`empanadas; macaroni and
`cheese; rice; jambalaya,
`namely, a spicy Creole rice
`dish with a mixture of fish
`and meat such as shrimp,
`chicken, ham and spicy
`sausage; fried tortillas filled
`with meat and cheese;
`Providing of food and drink;
`fast food restaurant services
`featuring meals consisting
`primarily of meat, or poultry.
`Prepared meals consisting
`primarily of meat or poultry;
`fried chicken; poultry;
`mashed potatoes; French
`fried potatoes; processed red
`beans; corn dogs; Biscuits;
`biscuit sandwiches; breakfast
`sandwiches consisting
`primarily of biscuits, egg,
`sausage, bacon and cheese;
`empanadas; macaroni and
`cheese; rice; jambalaya,
`namely, a spicy Creole rice
`dish with a mixture of fish
`and meat such as shrimp,
`chicken, ham and spicy
`sausage; fried tortillas filled
`
`
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 8 of 30
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`
`
`Trademark
`
`Reg. No.
`
`Reg. Date
`
`6,667,484
`
`03/08/2022
`
`(First use
`in
`commerce:
`2019)
`
`
`
`
`
`Goods
`with meat and cheese;
`Providing of food and drink;
`fast food restaurant services
`featuring meals consisting
`primarily of meat, or poultry.
`Prepared meals consisting
`primarily of meat, fish,
`shrimp or poultry; meat;
`fried chicken; processed fish;
`shrimps, not live; poultry;
`mashed potatoes; French
`fried potatoes; processed red
`beans. Seasoned coatings for
`meat, fish, shrimp or poultry;
`biscuits; biscuit sandwiches;
`breakfast sandwiches
`consisting primarily of
`biscuits, egg, sausage, bacon
`and cheese; burritos;
`empanadas; gravy; dipping
`sauces; macaroni and cheese;
`rice; jambalaya, namely, a
`spicy Creole rice dish with a
`mixture of fish and meat
`such as shrimp, chicken,
`ham and spicy sausage.
`Providing of food and drink;
`fast food restaurant services
`featuring meals consisting
`primarily of meat, fish,
`shrimp or poultry.
`
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`True and correct copies of the certificates for these registrations are attached hereto
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`as Exhibit A.
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`24. Pursuant to Section 7(b) of the Lanham Act, 15 U.S.C. § 1057(b),
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`Krispy Krunchy’s federal registration certificates are prima facie evidence of the
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 9 of 30
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`validity of the marks as well as Krispy Krunchy’s ownership and exclusive right to
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`use in commerce these marks in connection with the identified goods and services.
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`25. Registration No. 4,021,369 has also achieved incontestable status under
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`Section 15 of the Lanham Act, 15 U.S.C. § 1065.
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`26. Krispy Krunchy’s federal registrations and common law rights to the
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`KRISPY KRUNCHY marks will be collectively referred to hereafter as the
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`“KRISPY KRUNCHY Marks.”
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`27. Krispy Krunchy has continuously used the KRISPY KRUNCHY
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`Marks to identify its food products and related services and to distinguish them from
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`food products and related services offered by others. Krispy Krunchy has
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`accomplished this by prominently displaying the KRISPY KRUNCHY Marks on
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`store-front and in-store signage, point-of-sale displays, menus, food packaging,
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`letterheads, bills, direct mail advertising, internet and social media marketing,
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`websites, and in publications distributed throughout the United States.
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`28. Every package of chicken marked with the KRISPY KRUNCHY
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`Marks guarantees that the packaged product was prepared using Krispy Krunchy’s
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`proprietary recipes and preparation.
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`29. Krispy Krunchy is active in the Association for Convenience and Fuel
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`Retailing (formerly known as the National Association of Convenience Stores) and
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`is an exhibitor at its annual convention, often highlighting its role in industry changes
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 10 of 30
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`
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`in programs for use by C-Stores, QSRs, and grocery stores. Krispy Krunchy has
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`been mentioned by Convenience Store Petroleum, a leading C-Store industry
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`publication, no less than forty times in the last ten years. And over the last several
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`years alone, Krispy Krunchy has been featured in numerous publications and media
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`throughout the U.S., including Thrillist, The Wall Street Journal, The Chicago
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`Tribune, Yahoo.com, marketwatch.com, bizjournals.com, nola.com,
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`and
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`csdecisions.com, just to name a few.
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`30. The KRISPY KRUNCHY Marks also appear prominently on Krispy
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`Krunchy’s website, located at www.krispykrunchy.com.
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`31. Owing to Krispy Krunchy’s promotional, advertising, and marketing
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`efforts over these many years, the KRISPY KRUNCHY Marks have become widely
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`known throughout the United States, including in Georgia, as identifiers of Krispy
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`Krunchy’s goods and services.
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`32. Krispy Krunchy has invested significant time, funds, and effort toward
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`developing, marketing, and commercializing its KRISPY KRUNCHY Marks and
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`toward establishing the marks as source identifiers. As a result, Krispy Krunchy has
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`built strong goodwill in the KRISPY KRUNCHY Marks.
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`33. Moreover, through widespread industry acceptance and recognition,
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`the consuming public and the trade have come to recognize the KRISPY
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 11 of 30
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`
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`KRUNCHY Marks as identifying a single source of high-quality goods and
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`services—namely, Krispy Krunchy.
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`34. The KRISPY KRUNCHY Marks are inherently distinctive.
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`35. The KRISPY KRUNCHY Marks have also acquired distinctiveness, or
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`“secondary meaning,” in that customers have come to view the KRISPY
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`KRUNCHY Marks as source identifiers for Krispy Krunchy.
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`36. The KRISPY KRUNCHY Marks have become famous and are assets
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`of incalculable value as a symbol of Krispy Krunchy, its quality products and
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`services, and its goodwill.
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`Defendants’ Illicit Activities
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`37. On information and belief, Defendants operate a gas station and
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`convenience store that offers, among other things, various food products.
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`38. On information and belief, Defendants sell and/or sold prepared
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`chicken and/or related food items using signage and various point-of-sale materials
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`bearing the KRISPY KRUNCHY Marks.
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`39. On information and belief, Defendants and Krispy Krunchy provide
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`related food products and services and compete for the same customers in
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`overlapping geographic regions within Georgia and through the same channels of
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`trade.
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 12 of 30
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`40. Defendants are not authorized to use the KRISPY KRUNCHY Marks
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`or any marks confusingly similar thereto.
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`41. Defendants’ use of the KRISPY KRUNCHY Marks is likely to cause
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`confusion, mistake, or deception as to the source or origin of Defendants’ products
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`and services in that customers and potential customers are likely to believe that
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`Defendants’ products and services are provided by, sponsored by, approved by,
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`licensed by, affiliated or associated with, or in some other way legitimately
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`connected to Krispy Krunchy, when they are not.
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`42. Krispy Krunchy has notified Defendants and/or their predecessors in
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`interest of their misuse of the KRISPY KRUNCHY Marks on repeated occasions,
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`but Defendants have continued their illicit activities.
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`COUNT I:
`Trademark Counterfeiting
`(Lanham Act, § 32(1), 15 U.S.C. § 1114(1))
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`43. Krispy Krunchy repeats and realleges each and every allegation in the
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`foregoing paragraphs as if fully set forth herein.
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`44. Krispy Krunchy owns a number of federal trademark registrations for
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`the KRISPY KRUNCHY Marks for various food products and fast-food restaurant
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`services.
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`45. Without Krispy Krunchy’s consent, Defendants intentionally used in
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`commerce the KRISPY KRUNCHY Marks and/or substantially indistinguishable
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 13 of 30
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`variations or counterfeits thereof, as defined under 15 U.S.C. § 1116(d)(1)(B)(i), in
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`connection with the sale, offering for sale, and/or distribution of the food products
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`and fast-food restaurant services.
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`46. Without Krispy Krunchy’s consent, Defendants
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`reproduced,
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`counterfeited, copied, and/or colorably imitated the KRISPY KRUNCHY Marks
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`and applied such reproduction, counterfeit, copy, and/or colorable imitation to signs,
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`menus, point-of-sale materials, packages, wrappers, or advertisements, as defined
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`under 15 U.S.C. § 1116(d)(1)(B)(ii), in connection with the sale, offering for sale,
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`distribution, or advertising of food products and related services in a manner likely
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`to cause confusion, or to cause mistake, or to deceive.
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`47. Defendants’ actions described above are likely to cause confusion,
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`mistake, or to deceive as to the origin, sponsorship, or approval of Defendants’
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`products and commercial activities, and thus constitute counterfeiting of Krispy
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`Krunchy’s famous and federally registered KRISPY KRUNCHY Marks identified
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`above in violation of Section 32 of the Lanham Act, 15 U.S.C. § 1114.
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`48. The actions of Defendants described above have at all times relevant to
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`this action been willful.
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`49. As a direct and proximate result of the actions of Defendants alleged
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`above, Krispy Krunchy has been damaged and will continue to be damaged.
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`50. Unless enjoined, Defendants’ behavior will continue and will cause
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 14 of 30
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`
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`Krispy Krunchy to suffer irreparable harm for which there is no adequate remedy at
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`law. Krispy Krunchy is therefore entitled to injunctive relief.
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`COUNT II:
`Trademark Infringement
`(Lanham Act, § 32(1), 15 U.S.C. § 1114(1))
`
`51. Krispy Krunchy repeats and realleges each and every allegation in the
`
`foregoing paragraphs as if fully set forth herein.
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`52. Krispy Krunchy uses and owns the KRISPY KRUNCHY Marks in
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`connection with its sale of food products and provision of fast-food restaurant
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`services. The KRISPY KRUNCHY Marks are inherently distinctive and have also
`
`acquired secondary meaning as a designation of source for Krispy Krunchy.
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`53.
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`In connection with its promotion and sale of food products and
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`provision of fast-food services, Defendants use the KRISPY KRUNCHY Marks in
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`interstate commerce. Defendants’ use of the KRISPY KRUNCHY Marks is likely
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`to cause confusion and mistake and to deceive consumers and others as to the origin,
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`sponsorship or affiliation of the parties’ products and services. Consumers
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`observing Defendants’ food products and fast-food services in the marketplace are
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`likely to believe that those services are sponsored by, associated with or otherwise
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`affiliated with Krispy Krunchy, when they are not.
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 15 of 30
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`
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`54. Defendants’ use of the KRISPY KRUNCHY Marks constitutes
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`trademark infringement in violation of Section 32(1) of the Lanham Act, 15 U.S.C.
`
`§ 1114(1).
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`55. Defendants’ use of the KRISPY KRUNCHY Marks is a knowing,
`
`willful, and intentional violation of Krispy Krunchy’s rights.
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`56. Defendants’ acts of trademark infringement, unless restrained, will
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`cause great and irreparable harm to Krispy Krunchy and to the business goodwill
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`represented by the KRISPY KRUNCHY Marks, in an amount that cannot be
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`ascertained at this time, leaving Krispy Krunchy with no adequate remedy at law.
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`57.
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`In addition, Krispy Krunchy is being and will continue to be irreparably
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`injured by losing control of its brand’s reputation. Defendants’ unauthorized use of
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`the KRISPY KRUNCHY Marks causes Krispy Krunchy to be associated with goods
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`and services over which it has no control (namely, Defendants’). That involuntary
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`association will injure Krispy Krunchy, especially if customers are dissatisfied with
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`Defendants’ goods or services for any reason and consequently have a less favorable
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`opinion of Krispy Krunchy.
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`58. By reason of the foregoing, Krispy Krunchy is entitled to injunctive
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`relief against Defendants, restraining them from any further acts of trademark
`
`infringement, and is also entitled to recovery of Defendants’ profits, actual damages,
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`enhanced profits and damages, costs, and reasonable attorneys’ fees.
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 16 of 30
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`
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`59. On information and belief, Defendants’ acts complained of herein have
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`been deliberate, willful, intentional, and in bad faith, with full knowledge and in
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`conscious disregard of Krispy Krunchy’s rights in the KRISPY KRUNCHY Marks,
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`and with an intent to trade on Krispy Krunchy’s goodwill in these marks. In view
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`of the egregious nature of Defendants’ actions, this is an exceptional case within the
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`meaning of 15 U.S.C. § 1117(a).
`
`COUNT III
`Trademark Dilution
`(Lanham Act § 43(c), 15 U.S.C. § 1125(c))
`
`
`60. Krispy Krunchy repeats and realleges each and every allegation in the
`
`foregoing paragraphs as if fully set forth herein.
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`61. Krispy Krunchy owns valid and existing rights in the KRISPY
`
`KRUNCHY Marks.
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`62. Through continued use, promotion, and consumer and industry
`
`recognition, Krispy Krunchy has developed the KRISPY KRUNCHY Marks to the
`
`point that they are famous. After the KRISPY KRUNCHY Marks became famous,
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`Defendants began using (and are still using) the KRISPY KRUNCHY Marks in
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`connection with food products and the provision of fast-food restaurant services. In
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`so doing, Defendants are improperly creating a false association between their
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`products and services and the KRISPY KRUNCHY Marks.
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`63. This association is likely to cause a dilution of the strong goodwill that
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 17 of 30
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`
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`Krispy Krunchy has built in food products and provision of fast-food restaurant
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`services, in violation of 15 U.S.C. § 1125(c).
`
`64. As a result of Defendants’ wrongful conduct, Krispy Krunchy has been
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`damaged and will continue to be damaged in an amount to be determined at trial.
`
`65. Defendants’ unauthorized use or confusing imitation of the KRISPY
`
`KRUNCHY Marks is knowing and willful and with the intent to trade on the
`
`goodwill Krispy Krunchy has established in the KRISPY KRUNCHY Marks.
`
`66. Unless enjoined, Defendants’ behavior will continue and will cause
`
`Krispy Krunchy to suffer irreparable harm for which there is no adequate remedy at
`
`law. Krispy Krunchy is therefore entitled to injunctive relief.
`
`COUNT IV
`False Designation of Origin
`(Lanham Act § 43(a), 15 U.S.C. § 1125(a))
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`67. Krispy Krunchy repeats and realleges each and every allegation in the
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`foregoing paragraphs as if fully set forth herein.
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`68. Krispy Krunchy uses and owns the KRISPY KRUNCHY Marks in
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`connection with its sale of food products and provision of fast-food restaurant
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`services. The KRISPY KRUNCHY Marks are inherently distinctive and have also
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`acquired secondary meaning as designations of source for Krispy Krunchy.
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`69.
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`In connection with their promotion and sale of chicken and/or related
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`products and provision of fast-food services, Defendants use the KRISPY
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 18 of 30
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`
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`KRUNCHY Marks in interstate commerce. Defendants’ use of the KRISPY
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`KRUNCHY Marks is likely to cause confusion and mistake and to deceive
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`consumers and others as to the origin, sponsorship or affiliation of the parties’
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`products and services. Consumers observing Defendants’ products and fast-food
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`services in the marketplace are likely to believe that those services are sponsored by,
`
`associated with or otherwise affiliated with Krispy Krunchy, when they are not.
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`70. Defendants’ use of the KRISPY KRUNCHY Marks constitutes false
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`designation of origin in violation of Section 43(a) of the Lanham Act, 15 U.S.C.
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`§ 1125(a).
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`71. Defendants’ use of the KRISPY KRUNCHY Marks is a knowing,
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`willful, and intentional violation of Krispy Krunchy’s rights.
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`72. Defendants’ acts of false designation of origin, unless restrained, will
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`cause great and irreparable harm to Krispy Krunchy and to the business goodwill
`
`represented by the KRISPY KRUNCHY Marks, in an amount that cannot be
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`ascertained at this time, leaving Krispy Krunchy with no adequate remedy at law.
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`73.
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`In addition, Krispy Krunchy is being and will continue to be irreparably
`
`injured by losing control of its brand’s reputation. Defendants’ unauthorized use of
`
`the KRISPY KRUNCHY Marks causes Krispy Krunchy to be associated with good
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`and services over which it has no control (namely, Defendants’). That involuntary
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`association will injure Krispy Krunchy, especially if customers are dissatisfied with
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`- 18 -
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`
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 19 of 30
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`
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`Defendants’ goods or services for any reason and consequently have a less favorable
`
`opinion of Krispy Krunchy.
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`74. By reason of the foregoing, Krispy Krunchy is entitled to injunctive
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`relief against Defendants, restraining them from any further acts of false designation
`
`of origin, and is also entitled to recovery of Defendants’ profits, actual damages,
`
`enhanced profits and damages, costs, and reasonable attorneys’ fees.
`
`75. On information and belief, Defendants’ acts complained of herein have
`
`been deliberate, willful, intentional, and in bad faith, with full knowledge and in
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`conscious disregard of Krispy Krunchy’s rights in the KRISPY KRUNCHY Marks,
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`and with an intent to trade on Krispy Krunchy’s goodwill in these marks. In view
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`of the egregious nature of Defendants’ actions, this is an exceptional case within the
`
`meaning of 15 U.S.C. § 1117(a).
`
`COUNT V
`Trademark Dilution Under State Law
`(O.C.G.A. § 10-1-451(b) et seq.)
`
`76. Krispy Krunchy repeats and realleges each and every allegation in the
`
`
`
`foregoing paragraphs as if fully set forth herein.
`
`77. Krispy Krunchy possesses valid and enforceable rights in the KRISPY
`
`KRUNCHY Marks in connection with all of the goods and services at issue in this
`
`case by virtue of its extensive use, promotion, and advertisement of the KRISPY
`
`KRUNCHY Marks, and has possessed such rights at all times material hereto.
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`- 19 -
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 20 of 30
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`
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`78. By virtue of the extensive use, registration, advertising, promotion, and
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`consumer and marketplace recognition, the KRISPY KRUNCHY Marks are
`
`distinctive, have acquired secondary meaning, and are famous, and are entitled to
`
`protection against likely dilution by blurring.
`
`79. Defendants commenced the activities complained of herein after the
`
`KRISPY KRUNCHY Marks had become distinctive and famous, and with full
`
`knowledge of the public recognition and fame of the KRISPY KRUNCHY Marks.
`
`80. Defendants acted in bad faith and intended to and willfully traded on
`
`the goodwill associated with the KRISPY KRUNCHY Marks.
`
`81. Defendants’ use of variations of the distinctive KRISPY KRUNCHY
`
`Marks is likely to injure the business reputation of Krispy Krunchy and dilute the
`
`distinctive nature of the KRISPY KRUNCHY Marks.
`
`82. Defendants’ actions have caused, and will continue to cause,
`
`irreparable harm to Krispy Krunchy, as a result of the likely dilution of the distinctive
`
`KRISPY KRUNCHY Marks, and Krispy Krunchy has suffered substantial damages,
`
`as well as the continuing loss of goodwill and reputation established by Krispy
`
`Krunchy in its trademarks.
`
`83. At all material times, Defendants’ unlawful activity has been willful,
`
`knowing, and intentional.
`
`84. The acts of Defendants complained of herein constitute trademark
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`- 20 -
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`
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 21 of 30
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`
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`dilution in violation of O.C.G.A. § 10-1-451(b) et seq.
`
`85. Krispy Krunchy will continue to suffer irreparable harm unless the
`
`Court enjoins Defendants’ conduct.
`
`86. Krispy Krunchy is therefore entitled to injunctive relief.
`
`COUNT VI
`Unfair and Deceptive Trade Practices Under State Law
`(O.C.G.A. § 10-1-370 et seq.)
`
`87. Krispy Krunchy repeats and realleges each and every allegation in the
`
`foregoing paragraphs as if fully set forth herein.
`
`88. Defendants have knowingly and willfully used, without the consent of
`
`Krispy Krunchy, a reproduction, counterfeit, copy, and colorable imitation of the
`
`KRISPY KRUNCHY Marks, and have applied such reproduction, counterfeit, copy
`
`and colorable imitation to labels, signs, prints, packages, wrappers, receptacles, or
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`advertisements intended to be sold or distributed in the state of Georgia.
`
`89. Defendants’ conduct is causing a likelihood of confusion or of
`
`misunderstanding as to the source, sponsorship, or approval of Defendants’ goods,
`
`causing a likelihood of confusion as to Defendants’ affiliation, connection, or
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`association with Krispy Krunchy, and otherwise damaging Krispy Krunchy and the
`
`public. Defendants have engaged in such conduct willfully and knowing that such
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`conduct is likely to cause confusion. Defendants’ conduct constitutes unfair and
`
`deceptive acts or practices in violation of O.C.G.A. §§ 10-1-370 to 10-1-375.
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`- 21 -
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 22 of 30
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`
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`90. Defendants’ actions have caused, and will continue to cause,
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`irreparable harm to Krispy Krunchy as a result of such activities, and Krispy
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`Krunchy has suffered substantial damages, as well as the continuing loss of goodwill
`
`and reputation established by Krispy Krunchy in its trademarks.
`
`91. Krispy Krunchy is therefore entitled to injunctive relief and to an award
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`of its costs and attorneys’ fees as a result of Defendants’ willful and unlawful
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`conduct.
`
`COUNT VII
`Common Law Trademark Infringement
`
`92. Krispy Krunchy repeats and realleges each and every allegation in the
`
`foregoing paragraphs as if fully set forth herein.
`
`93. The KRISPY KRUNCHY Marks are distinctive and famous.
`
`94. Defendants’ use of the KRISPY KRUNCHY Marks is likely to cause
`
`confusion, mistake, or deception as to the source of origin of Defendants’ food
`
`products and services in that customers and potential customers are likely to believe
`
`that such products and services are provided by, sponsored by, approved by, licensed
`
`by, affiliated or associated with, or in some other way legitimately connected to
`
`Krispy Krunchy, when they are not.
`
`95. Defendants’ acts constitute trademark infringement under the common
`
`law of Georgia.
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`96. Defendants acted in willful, deliberate, and/or intentional disregard of
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`- 22 -
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`
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 23 of 30
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`
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`Krispy Krunchy’s rights.
`
`97. Krispy Krunchy has suffered irreparable harm, for which it has no
`
`adequate remedy at law, and will continue to suffer irreparable injury unless and
`
`until Defendants’ infringing acts are enjoined by this Court.
`
` COUNT VIII
`Common Law Unfair Competition
`
`98. Krispy Krunchy repeats and realleges each and every allegation in the
`
`
`
`foregoing paragraphs as if fully set forth herein.
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`99. Defendants’ conduct constitutes unfair competition in violation of
`
`Krispy Krunchy’s rights.
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`100. Defendants acted in willful, deliberate, and/or intentional disregard of
`
`Krispy Krunchy’s rights.
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`101. As a direct and proximate result of Defendants’ unfair competition,
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`Krispy Krunchy has suffered irreparable harm, for which it has no adequate remedy
`
`at law, and will continue to suffer irreparable harm unless and until Defendants’
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`unfair competition is enjoined by this Court.
`
`
`
`
`
`PRAYER FOR RELIEF
`
`WHEREFORE, Krispy Krunchy requests that this Court:
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`A. A judgment that Defendants have infringed the KRISPY KRUNCHY
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`Marks, causing irreparable harm to Krispy Krunchy, and granting
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`- 23 -
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`
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`Case 1:22-cv-02980-MHC Document 1 Filed 07/27/22 Page 24 of 30
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`
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`preliminary and permanent injunctive relief enjoining and restraining
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`Defendants, their officers, directors, agents, servants, employees,
`
`attorneys and all others acting under or through Defendant, directly or
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`indirectly, from infringing the KRISPY KRUNCHY Marks or any
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`other marks confusingly similar thereto on, or in association with,
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`goods and services not originating from Krispy Krunchy;
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`B. A judgment that Defendants have engaged in trademark dilution under
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`15 U.S.C. § 1125(c), granting preliminary and permanent injunctive
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`relief enjoining and restraining Defendants, their officers, directors,
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`agents, servants, employees, attorneys and all others acting under or
`
`through Defendants, directly or indirectly, from infringing the KRISPY
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`KRUNCHY Marks or any other marks confusingly similar thereto on,
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`or in association with, goods and services
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