Ninth Circuit Revives Trader Joe’s Trademark Infringement Case Against Labor Union

According to a report from Courthouse News, the Ninth Circuit Court of Appeals has revived a trademark infringement lawsuit filed by Trader Joe’s against a labor union. A three-judge panel ruled that it was too early in the process for the case to be dismissed. Here, our Florida trademark infringement lawyer discusses the case in more detail.

Background: Trader Joe’s Trademark Dispute With Labor Union

Trader Joe’s filed a trademark lawsuit against its employee union. The labor union is Trader Joe’s United. In 2023, the grocery retailer alleged that the union’s sale of merchandise using visuals and branding was very similar to the grocery chain’s trademarks. Notably, the union had been selling products like tote bags, mugs, and buttons that allegedly mimicked Trader Joe’s distinctive red typeface, logo styles, and color scheme. A federal district court initially dismissed the claim. In doing so, it found that there was no likelihood of confusion among consumers. A likelihood of confusion is a required element of a trademark infringement claim.

Why the Ninth Circuit Overruled the Dismissal of the Trademark Infringement Claim

In September of 2025, the Ninth Circuit Court of Appeals reversed a district court ruling that had dismissed Trader Joe’s trademark infringement claims against its employee union. The panel determined that the lower court erred, as a matter of law, in finding that no likelihood of confusion existed under the Lanham Act. Applying Ninth Circuit precedent, the court emphasized that likelihood of confusion is generally a factual question inappropriate for dismissal at the pleadings stage. Trader Joe’s raised enough evidence for a plausible allegation.

Beyond that, the federal appellate court also stressed the strength of the Trader Joe’s mark and the potential for consumer misunderstanding. While acknowledging First Amendment considerations because labor union activity is at issue, the court still found that the alleged conduct (especially the selling of merchandise for profit using near-identical branding) fell within traditional trademark law. As such, it reinstated Trader Joe’s trademark infringement claims and remanded the case for further proceedings.

Where the Case Stands Now (September 2025)

To be clear, this trademark infringement claim has not been resolved in favor of Trader Joe’s. Instead, the appellate court merely ruled that a dismissal of the claim at this stage of the legal process was an error as a matter of law. The case now goes back to the trial court, where both sides will exchange evidence and argue whether the union’s products truly infringe Trader Joe’s trademarks. For its part, the labor union has raised a defense under the Fair Use Doctrine on the grounds that its “branding” is a form of expressive speech. 

Speak to a Florida Trademark Infringement Attorney Today

At Perkins Law — Brand Protection, our Florida trademark infringement lawyer has the knowledge and intellectual property law experience that you can trust. We help businesses protect their brand. Contact us today to arrange a fully confidential, no obligation initial consultation. From our Boca Raton law office, we provide trademark law services to clients throughout South Florida.

Source:

courthousenews.com/ninth-circuit-revives-trader-joes-trademark-lawsuit-against-union/