Reference no: EM131390547
In 1967, a Chicago brewer, Meister Brau, Inc., began making and selling a reduced-calorie, reduced-carbohydrate beer under the name ‘‘LITE.'' Late in 1968, that company filed applications to register ‘‘LITE'' as a trademark in the U.S. Patent Office, which ultimately approved three registrations of labels containing the name ‘‘LITE'' for ‘‘beer with no available carbohydrates.''
In 1972, Meister Brau sold its interest in the ‘‘LITE'' trademarks and the accompanying goodwill to Miller Brewing Company. Miller decided to expand its marketing of beer under the brand ‘‘LITE.'' It developed a modified recipe, which resulted in a beer lower in calories than Miller's regular beer but not without available carbohydrates. The label was revised, and one of the registrations was amended to show ‘‘LITE'' printed rather than in script. In addition, Miller undertook an extensive advertising campaign.
From 1973 through 1976, Miller expanded its annual sales of ‘‘LITE'' from 50,000 barrels to 4 million barrels and increased its annual advertising expenditures from $500,000 to more than $12,000,000. Beginning in early 1975, a number of other brewers, including G. Heileman Brewing Company, introduced reduced-calorie beers labeled or described as ‘‘light.''
In response, Miller began filing trademark infringement actions against competitors to enjoin the use of the word ‘‘light.'' Should Miller be granted the injunction? Explain.
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