Fast-casual restaurant Chipotle Mexican Grill (NYSE:CMG) sued its competitor Sweetgreen in California federal court on Tuesday, alleging that the salad chain’s new “Chipotle chicken burrito bowl” infringes on its trademark rights.
In the lawsuit, Chipotle alleges that Sweetgreen is using its famous “Chipotle” trademark and its trademarked color Adobo Red to sell a product that is “very similar and directly competitive” to Chipotle’s chicken burrito bowl.
Chipotle alleges Sweetgreen’s intent was to draw an association between the two products and brands, and is likely to confuse consumers.
“Sweetgreen’s conduct constitutes trademark infringement, trademark dilution, false designation of origin, and deceptive trade practice,” the lawsuit alleges.
Chipotle said in the lawsuit, on discovering Sweetgreen’s alleged infringing conduct, it wrote to Sweetgreen and asked it to cease using the “Chipotle” trademark and re-name its new product. Sweetgreen did not respond and continued its infringing conduct, Chipotle alleges.
Chipotle asked the court to order Sweetgreen to stop using the mark “Chipotle” and to award an unspecified sum for damages and losses suffered by Chipotle as a result of Sweetgreen’s alleged actions.
Sweetgreen said in a statement that it was aware of the lawsuit but provided no further comment, Reuters reported.
The company’s shares fell 11% to US$6.55 on Wednesday afternoon.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie