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Sands, Taylor & Wood Company v. Quaker Oats Co.
United States Court of Appeals for the Seventh Circuit
978 F.2d 947 (1992)
Sands, Taylor & Wood Company (STW) (plaintiff) was a small flour retailer based in Vermont. STW acquired a drink manufacturer and became the owner of the trademark THIRST-AID. Pet, Inc. (Pet) negotiated with STW to use the THIRST-AID mark on drinks to compete with the Gatorade brand. Although Pet began test-marketing the product, Pet never marketed the drinks, and the license to use THIRST-AID expired. Gatorade’s manufacturer was then acquired by The Quaker Oats Company (Quaker) (defendant). After Quaker created an advertising campaign using the slogan “Gatorade is Thirst Aid,” STW sued Quaker for trademark infringement. The district court entered judgment for STW. Quaker appealed the district court’s determination that there would likely be confusion between the advertised Gatorade products and STW’s beverages.
Rule of Law
Holding and Reasoning (Cudahy, J.)
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