Trader Joe's vs Pirate Joe's Case







Trader Joe’s vs. Pirate Joe’s Case
BUS 206-15EW3
08 February 2015







Trader Joe’s vs. Pirate Joe’s Case
Trader Joe’s is a privately held grocery store operating about 400 stores across 30 states including 14 stores in Washington State. On the other hand, Michael Hallatt of Vancouver, Canada operates his store across the border called Pirate Joe’s, which sells products sourced from Trader Joe’s stores. Michael Hallatt sources products from Trader Joe’s stores in Washington and transports them across the border to resell from his Pirate Joe’s store at a higher price. Trader Joe’s sells its original products some of which are custom and branded. Trader Joe’s took the matter to court seeking to stop Pirate Joe’s from reselling its products and suing for damages.
The parties, in this case, are the Trader Joe’s owners against Michael Hallatt, the owner of Pirate Joe’s. The dispute presents deceptive business practices, trademark infringement, false endorsements, and false advertising that is present as a threat and undermines genuine Trader Joe’s products. That was considered by Trader Joe’s as hurting their brand that they had taken time to build. Trader Joe’s is a brand trusted by millions of shoppers, and they invested in building and maintaining their brand. By Pirate Joe’s operating stores that are not designed or operated to match up Trader Joe’s standards and image, it possibly has an adverse effect on its brand. Customers who trusted Trader Joe’s brand for all the custom reasons including the store’s operations and branding could find Pirate Joe’s, that sold the same products, unappealing and that hurts Trader Joe’s brand (Elias & Stim, 2013. p.19).
In this case, Pirate Joe’s took advantage of the brand built by Trader Joe’s that gained popularity and liking among customers to make money. In selling Trader Joe’s products, it is possible that if a problem would arise out of the Pirate Joe’s business, Trader Joe’s will suffer...