Chocolate Company Hershey Sues Marijuana Dealer for Trademark Infringement

Chocolate giant Hershey Co. filed a lawsuit on May 10, 2007 against Kenneth Affolter, a California-based marijuana dealer. The lawsuit accuses Affolter of trademark infringement, trademark dilution and unfair competition, and Hershey is seeking $100,000 worth of damages.

The suit ensued after Affolter sold marijuana-laced snacks with names like Keef Kat, Puff-A-Mint Patty, Rasta Reese's and Stoney Rancher to California state-authorized medicinal marijuana shops. Stickers placed on the snacks closely resemble the packaging of Hershey Co.'s Kit Kat, York Peppermint Pattie, Reese's Peanut Butter Cups and Jolly Rancher.

Trademark dilution occurs when a famous mark is used in a way that would lessen the mark's uniqueness. Tarnishment, a form of dilution, occurs when a mark is weakened through unflattering or unsavory associations. Under current U.S. trademark dilution law, the party bringing suit must only prove likely dilution, and not actual dilution.

Even though California state law permits the sale of medicinal marijuana, federal law prohibits the possession of marijuana. Although consumers might not think that Hershey manufactures the marijuana-laced snacks, the company has a valid interest to not be associated with illegal drugs. Using famous marks on bad quality or illegal goods can certainly create an unflattering or unsavory association in the mind of the consumer.