U.S. grocery giant Trader Joe’s has initiated legal action against a decentralized cryptocurrency exchange that bears a strikingly similar name. The lawsuit alleges trademark infringement and brand dilution. It specifically targets the platform known as “Trader Joe” and one of its co-founders, Cheng Chieh Liu.
However, Trader Joe’s legal team contends that the decentralized cryptocurrency exchange has purposefully crafted a narrative. This narrative is designed to create confusion between the two entities.
They argue that the platform has skillfully fabricated a fictional backstory around a character they’ve named “Trader Joe.” Moreover, according to the lawyers, this narrative is a deliberate effort to evoke the established reputation of the grocery chain.
Furthermore, the legal team has expressed reservations about the cryptocurrency platform’s emblem – a figure adorned in a red cap. This hue closely resembles the color palette of the supermarket chain. Furthermore, it’s a prominent hue associated with the Avalanche layer-1 blockchain.
Key Points in the Trader Joe’s vs. Crypto Exchange Legal Battle
It has been revealed that Cheng Chieh Liu, a Singapore resident and Chinese citizen, owns the contested web domain traderjoexyz.com. The lawsuit emphasizes that the name “Trader Joe” is not limited to the primary website alone.
Instead, it extends its presence across various platforms. These platforms include the Apple App Store, along with social media channels like YouTube, Discord, Reddit, Telegram, and CoinMarketCap.
When asked about these allegations, the accused individuals reportedly attempted to obfuscate their origins. This was a probable effort to bolster their legal position regarding the domain. Trader Joe’s supermarket claims that this maneuver underscores the cryptocurrency platform’s acknowledgment of its weak claim to both the name and domain.
Established in 2021, the decentralized exchange in question was developed by an anonymous team and functions on the Avalanche blockchain. It emerged as a derivative of the SushiSwap protocol. On this platform, providers of liquidity can deposit assets to accrue transaction fees, often referred to as “supply-side fees,” from traders.
The lawsuit also points out that the personnel of the cryptocurrency platform employ pseudonyms both within and outside the organization. Trader Joe’s supermarket posits that the platform is capitalizing on its nomenclature to gain a competitive edge, exploiting the retailer’s robust brand and trademark.