Hokto Kinoko Co. v. Concord Farms, Inc.

738 F.3d 1085 (2013)

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Hokto Kinoko Co. v. Concord Farms, Inc.

United States Court of Appeals for the Ninth Circuit
738 F.3d 1085 (2013)

Facts

Hokuto Company, Ltd. was a Japanese company that produced and sold mushrooms, among other food products. Hokuto launched a subsidiary, Hokto Kinoko Company (Hokto) (plaintiff), to produce and sell mushrooms in the United States. Hokuto’s mushrooms were grown under nonorganic conditions, but Hokto’s mushrooms were certified organic—a difference reflected in the labels. Hokuto and Hokto used the same trademarks, featuring mushroom-based cartoon characters, with Hokto holding the right to exclusive use of the trademarks in the United States. Concord Farms, Inc. (defendant), a United States-based corporation, imported Japanese mushrooms from Hokuto. These mushrooms were sold in stores alongside Hokto’s US-produced mushrooms in sections marked “organic” and “made in the USA.” Hokto brought a trademark-infringement action against Concord Farms in the United States District Court for the Central District of California. The court granted summary judgment in favor of Hokto, enjoining Concord Farms from further sales of the Hokuto mushrooms. Concord Farms appealed to the United States Court of Appeals for the Ninth Circuit.

Rule of Law

Issue

Holding and Reasoning (Wardlaw, J.)

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