Last month, whiskey giant Jack Daniel’s sued small distiller Popcorn Sutton’s claiming trademark infringement.  Popcorn Sutton’s whiskey, which had originally been packaged and sold in Mason jars, has switched to a square-shaped bottle that according to officials at Jack Daniel’s is a bit too similar to their own bottle.

Popcorn Sutton’s Tennessee White Whiskey gets its name from Marvin “Popcorn” Sutton, a famed Appalachian moonshiner.  According to the manager of a Louisville, KY wine and spirits store, the Popcorn Sutton’s whiskey was more of a curiosity to customers when bottled in Mason jars, and a better seller at the time.

In the lawsuit, Jack Daniel’s claims that Popcorn Sutton’s new bottle, which is square shaped with beveled corners and angled shoulders, is “confusingly similar” to its own.  The new Popcorn Sutton white whiskey bottle also contains a similar color scheme with white on black labeling.

A spokesperson for Brown-Forman, owner of Jack Daniel’s, said that the company had taken legal action against both companies and individuals around the world due to infringement on the Jack Daniel’s trademark.

Marvin Sutton, author of a paperback book titled “Me and My Likker,” committed suicide in 2009 in order to avoid going to prison for manufacturing white lightening.  Sutton also produced videos on how to make moonshine, according to the Detroit Free Press.

Popcorn Suttons’ white whiskey is sold in four states including Arkansas, Georgia, Kentucky, and Tennessee according to the company’s website.  The lawsuit states that except for minor tweaks, the packaging of Jack Daniel’s whiskey has for decades been “a consistent commercial impression.”

Ultimately, the lawsuit against the small distillery seeks an injunction to stop Popcorn Sutton’s from using the bottle; Jack Daniel’s is also seeking damages, although the amount was not specified.

If you are involved in a trademark infringement dispute, our Los Angeles trademark infringement lawyers are ready to help.  The Spotora & Associates website provides more information regarding trademarks, business acquisitions and mergers, intellectual property disputes, contract agreements, and more.

Recently it was announced that Marling Equity Partners in Los Angeles would acquire Tellabs, a company specializing in telecom and optical networking equipment during the 1990s networking boom.  News reports indicate Marlin will pay $891 million in cash, what some call “nickels and dimes” compared to the sales Tellabs enjoyed in a single quarter during the company’s heyday.

According to a news article at Fox Business, Marlin’s buyout carries a modest premium of less than 5%.  Co-founder Michael Birck, a major shareholder, and lead activist Dialectic Capital Management backed the deal, despite the meager premium.

Tellabs, based in Naperville, IL, sold marketing services and equipment to providers of communications services.  The buyout amounts to $2.45 per share in cash that Marlin Equity Partners agreed to in the deal.  On the Friday prior to the buyout on Monday, Tellab’s stock closed at $2.35;  the $2.45 per share Marlin agreed to pay represents a 4.3% premium.

Tellabs chairman Vince Tobkin said that the buyout was agreed to after a “thorough review” of the company’s strategic alternative.  Tobkin stated that Tellabs considered over 30 strategic and financial suitors which were evaluated by the board, and that ultimately the best option for all stakeholders involved was chosen.  As of June 2013, Tellabs employed over 2,500 employees.  The network services provider generated $1.05 billion in revenue in 2012.  The deal between Marlin Equity Partners and Tellabs is expected to close in the final quarter of 2013.

The Los Angeles business merger and acquisitions attorneys at Spotora & Associates know the complexities involved when one company acquires another.  Often companies face tumultuous transitions and numerous legal complications.  From protecting shareholder interest to operational objectives and preparation of agreements, we are dedicated to making the business of mergers and acquisitions as seamless as possible.