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ARTICLE · 09 JUNE 2015

Pre-Arbitration Injunction May Only Preserve Status Quo

The dispute arises out of a 1994 agreement between plaintiff Benihana America and defendant Benihana of Tokyo—two restaurant chains operating under the Benihana brand.

United StatesIntellectual Property

Benihana, Inc. v. Benihana of Tokyo, LLC

In the context of a dispute surrounding a breach of a trademark license agreement that provided for arbitration of certain disputes, the U.S. Court of Appeals for the Second Circuit concluded that it was inappropriate for a district court to use its injunction in aid of arbitration jurisdiction to issue an injunction that went to issues already properly before the arbitration panel. Benihana, Inc. v. Benihana of Tokyo, LLC, Case No. 14-841, (2d Cir., Apr. 28, 2015) (Lynch, J.)  Rather, the district court's aid of arbitration jurisdiction only extends to injunctions limited to maintaining the status quo between the parties.

The dispute arises out of a 1994 agreement between plaintiff Benihana America and defendant Benihana of Tokyo—two restaurant chains operating under the Benihana brand. Under the agreement, plaintiff received rights to use the Benihana trademarks and to operate Benihana restaurants in certain

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