Mischaracterization Of Relationship Violates Trademark Rights

Addressing issues of trademark infringement, the U.S. Court of Appeals for the Fifth Circuit affirmed the U.S. District Court for the Western District of Texas' grant of an injunction in favor of a restaurant franchisor under the Lanham Act. Schlotzsky's Ltd. v. Sterling Purchasing and Nat'l Dist. Co., Inc., 2008 U.S. App. LEXIS 4801 (5th Cir., March 5, 2008) (Southwick, J.).

Plaintiff Schlotzsky's entered an agreement for defendant Sterling Purchasing and Nat'l Dist. Co., Inc. ("Sterling") to act as a "non-exclusive supply chain manager" for the plaintiff's national chain of delis. Sterling began to hold itself out as the exclusive representative for purchasing and distribution of all goods and services with the Schlotzsky's system. The relationship between Schlotzsky's and Sterling was eventually terminated. Schlotzsky sought injunctive relief under the Lanham Act, even though Sterling had not