Gold Kist Inc. v. ConAgra, Inc.

708 F. Supp. 1291, 1989 U.S. Dist. LEXIS 2438, 1989 WL 22371
CourtDistrict Court, N.D. Georgia
DecidedFebruary 8, 1989
DocketCiv. A. 1:87-CV-2558-MHS
StatusPublished
Cited by3 cases

This text of 708 F. Supp. 1291 (Gold Kist Inc. v. ConAgra, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gold Kist Inc. v. ConAgra, Inc., 708 F. Supp. 1291, 1989 U.S. Dist. LEXIS 2438, 1989 WL 22371 (N.D. Ga. 1989).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

SHOOB, District Judge.

An evidentiary hearing was held in this case on October 27, 1988 to determine whether plaintiff, Gold Kist Inc. (“Gold Kist”) is entitled to a permanent injunction against ConAgra, Inc.’s (“ConAgra”) use of the label “Golden Medallion” for its processed chicken products. Gold Kist alleges that ConAgra’s label violates both Sections 32(1) and 43(a) of the Lanham Act, 15 U.S. C. §§ 1114(1) and 1125(a), respectively. Plaintiff also asserts that defendant engaged in deceptive and unfair trade practices and false advertising in violation of Georgia law and common law trademark infringement.

FINDINGS OF FACT

Plaintiff Gold Kist is a nonprofit cooperative marketing corporation with its principal place of business in Atlanta, Georgia. Gold Kist is, among other things, an inte *1293 grated poultry producer and marketer with feedmills, processing plants and distribution centers.

ConAgra is a Delaware corporation with its principal place of business in Omaha, Nebraska. ConAgra is, like Gold Kist, an integrated producer and marketer of poultry products. ConAgra’s net sales for the fiscal year ending May 31, 1987, were approximately 9 billion dollars. ConAgra Foodservice Company (“CFS”) is a division of ConAgra, Inc., with its principal offices in Baldwin, Missouri. (ConAgra and CFS are hereinafter referred to collectively as “ConAgra”.)

Gold Kist is the owner by assignment of the trademark MEDALLION. The MEDALLION trademark is registered on the Principal Register of the United States Patent and Trademark Office (“USPTO”) as Reg. Nos. 802,798 (for frozen dressed turkeys) and 968,737 (for frozen dressed poultry), dated January 26, 1966, and September 18, 1973, respectively. The trademark MEDALLION and the registrations thereof were assigned to Gold Kist by Ralston Purina Company by means of a written Assignment dated October 28, 1977, recorded in the records in the USPTO. Gold Kist and its assignor have filed with the USPTO all appropriate renewal documents and affidavits of use, and the registrations for MEDALLION are in full force and effect.

Since it acquired the MEDALLION trademark in 1977, Gold Kist has made extensive and continuous use of the mark. Gold Kist’s sales of poultry products under the MEDALLION trademark have exceeded $55,000,000 since 1977. Its sales of products under the MEDALLION mark in its most recent fiscal year were more than $22,000,000.

Gold Kist currently uses the trademark MEDALLION to identify various poultry products produced and sold by Gold Kist, including further processed poultry items, rock cornish hens and prepackaged chilled chicken parts. Gold Kist licenses Cargill Inc. to use the MEDALLION mark on fresh frozen dressed turkeys produced and sold by Cargill. Pursuant to the terms of the license agreement, Gold Kist exercises control over the quality of the goods sold by Cargill under the MEDALLION trademark.

“Further processed” poultry is generally defined as poultry which has had something done to it after it has been cleaned and eviscerated, i.e., poultry which has been de-boned, battered, breaded, precooked, processed and re-formed, or any combination of the foregoing. Further processed poultry sold by Gold Kist under the MEDALLION mark is always sold in a frozen state and packed in boxes. The boxes bear the MEDALLION label and are not repacked or repackaged by the distributor before sale to operators or customers of the distributor. The further processed poultry items sold by Gold Kist under the MEDALLION trademark include breaded chicken patties, breaded chicken nugget patties and chicken fritters.

The first further processed poultry items sold by Gold Kist under the MEDALLION mark were chicken hotdogs and chicken bologna in 1978. Although the sales of further processed poultry items have been relatively minor in the past, plaintiff produced evidence that it intends to expand this line in the future. In 1985, Gold Kist expanded its plant at Boaz Alabama at a cost of approximately $6,000,000 so that Gold Kist could produce further processed poultry.

Also, Gold Kist produced evidence of plans to expand its operations in the further processed poultry product market segment, and plans to expand both the volume and number of further processed poultry items sold under the MEDALLION trademark. Gold Kist has already begun construction of an expansion to its further processed poultry plant in Boaz. The construction is designed to double Gold Kist’s capacity to produce further processed poultry and is expected to be completed in April, 1989.

Gold Kist also sells chilled, prepacked chickens and chicken parts under the MEDALLION trademark. The full product line of chill pack items sold under the MEDALLION brand contains approximately 30-35 items. The primary parts sold under *1294 the MEDALLION label are breasts, drums, thighs, and wings. Gold Kist sold approximately 20-22 million pounds of chilled, prepackaged chicken parts under the MEDALLION trademark in fiscal year 1987, representing sales of approximately $15 million.

Gold Kist also markets frozen rock cornish game hens under the MEDALLION trademark. Gold Kist has been selling rock cornish hens under the MEDALLION trademark since October of 1977, when Gold Kist acquired the trademark from Ralston Purina Company. In the last twelve months, Gold Kist’s estimated sales of rock cornish game hens under the MEDALLION trademark were approximately $7,000,000.

Gold Kist advertises the MEDALLION trademark extensively and through a variety of methods, although most of its advertising is aimed at retail purchasers. Gold Kist engages in cooperative advertising by providing promotional allowances to its customers for promotion by customers of the MEDALLION brand product. The customers may use “ad slicks” provided by Gold Kist reflecting the MEDALLION trademark in print advertisements generated by the customer. Advertising by customers of Gold Kist is done in print advertising such as local newspapers, as well as some advertising on television and radio. Gold Kist also uses point of sale promotional pieces that identify and illustrate the products sold under the MEDALLION trademark and how they can be purchased.

In addition, Gold Kist has produced a cookbook entitled “Elegant & Easy” which depicts the MEDALLION trademark on the cover and describes various methods for preparing and serving rock cornish hens. Approximately 30,000 copies of the cookbook have been printed, and approximately 10,000 have been distributed. Among other things, the cookbooks have been provided to restaurants for ideas on how to prepare cornish hens. Gold Kist also advertises MEDALLION through the use of discount coupons to be redeemed by customers.

The products sold by Gold Kist under the MEDALLION trademark are sold through various channels of trade and distribution.

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708 F. Supp. 1291, 1989 U.S. Dist. LEXIS 2438, 1989 WL 22371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gold-kist-inc-v-conagra-inc-gand-1989.