kuerig green mountain v. global baristas - tully trademark complaint

18
JS44C/SDNY .. ;,. ""fit)MA r5. 2 J ?otc; pleadings or other papers as required by law. excepl as provided by local rules of court. This form. approved Judicial Conference of the United Slates in Seplember 1974, is required for use of the Clerk of Court for the pu se · '.:) initiating the civil docket sheet PLAINTIFFS KEURIG GREEN MOUNTAIN, INC. ATIORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER Joseph E. Czerniawski Wormser, Kiely, Galef & Jacobs LLP 825 Third Avenue, 26 Fl., New York_, New York 10022-7519 DEFENDANTS GLOBAL BARISTAS, LLC AITORNEYS (IF KNOWN) CAUSE OF ACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSij (DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY) Has this action, case, or proceeding, or one essentially the same been previously filed in SONY at any time? NffiesClJudge Previously Assigned If yes, was this case Vol. D lnvol. D Dismissed. No D Yes D If yes, give date _________ & Case No.--------- IS THlS AN IHTERNAnONAL ARSITRAnON CASEl No [!) Yes D (PlACE AN [xJ /NONE BOX ONLY} CONTRACT 11110 ( ]120 ( 1130 ( ]140 ( 1150 1 ]151 11152 I 1153 ( )160 I 1190 ( 1195 INSURANCE MARINE MillER ACT NEGOTIABLE INSTRUMENT RECOVERY OF OVERPAYMENT & ENFORCEMENT OF JUDGMENT MEDICARE ACT RECOVERY OF DEFAULTED STUDENT LOANS (EXCL VETERANS) RECOVERY OF OVERPAYMENT OF VETERAN'S BENEFITS STOCKHOLDERS SUITS OTHER CONTRACT CONTRACT PRODUCT LIABILITY I 1196 FRANCHISE REAL PROPERTY 11210 LAND CONDEMNATION ( I 220 FORECLOSURE I ]230 RENTLEASE & EJECTMENT [ I 240 TORTSTO LAND I 1245 TORT PRODUCT LIABILITY I ]290 All OTHER REAL PROPERTY TORTS PERSONAL INJURY I 1310 AIRPLANE I ]315 AIRPLANE PRODUCT LIABILITY ( I 320 ASSAULT. LIBEL & SLANDER I )330 FEDERAL EMPLOYERS' LIABILITY I )340 MARINE I )345 MARINE PRODUCT LIABILITY I 1350 MOTOR VEHICLE ( 1355 MOTOR VEHICLE PRODUCT LIABILITY I ]360 OTHER PERSONAL INJURY I )362 PERSONAL INJURY MED MALPRAcnCE OVILRIGHTS I )440 OTHER CIVIL RIGHTS (Non-Prisoner) 1)441 VOTING ( 1442 EMPLOYMENT I 443 HOUSINGI ACCOMMODATIONS ( )445 AMERICANS WITH DISABILITIES EMPLOYMENT ( )446 AMERICANS WITH DISABILITIES -OTHER ( 1448 EDUCATION Check if demanded in complaint: D CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23 NATURE OF SUIT PERSONAL INJURY FORFEJTUREIPENALTY I )367 HEALTHCAREI PHARMACEUTICAL PERSONAL 1 )625 DRUG RELA TEO INJURYIPRODUCT LIABILITY SEIZURE OF PROPERTY ( ] 365 PERSONAL INJURY 21 USC 881 PRODUCT LIABILITY I 1368 ASBESTOS PERSONAL ( 1 690 OTHER INJURY PRODUCT LIABILITY PERSONAL PROPERTY 11 370 OTHER FRAUD 371 TRUTH IN LENDING [ )380 OTHER PERSONAL PROPERTY DAMAGE I )385 PROPERTY DAMAGE PRODUCT LIABILITY PRISONER PEnnONS ( )463 ALIEN DETAINEE I )510 MOTIONS TO VACATE SENTENCE 2BUSC 2255 I )530 HABEAS CORPUS ( 1535 DEATH PENAL TV ( ]540 MANDAMUS & OTHER PRISONER CIVIL RIGHTS I ]550 CIVIL RIGHTS ( 1555 PRISON CONDITION ( ]560 CIVIL DETAINEE LABOR ( ]710 FAIR LABOR STANDARDS ACT I (720 LABORIMGMT RELATIONS I )740 RAILWAY LABOR ACT I ] 751 FAMILY MEDICAL LEAVE ACT (FMLA) ( ]790 OTHER LABOR LITIGATION I )791 EMPL RET INC SECURITY ACT IMMIGRATION I 1462 NATURALIZATION APPLICATION I )465 OTHER IMMIGRATION ACTIONS CONDITIONS OF CONFINEMENT BANICJIUPTCY I ]422 APPEAL 28 usc 158 I )423 WITHDRAWAL 28 usc 157 PROPERTY RIGHTS ( 1620 COPYRIGHTS I )830 PATENT ()() 840 TRADEMARK SOOAL SECURITY ( )861 HIA(139511) I )862 BlACK LUNG (923) I )863 DIWCIOIV'oW (405(g)) ( )864 SSIO TffiE XVI I )865 RSI (405(g)) FEDERALTAXSUITS ( )870 TAXES (U.S. Plainbfl 0t D81ondanl) ( 1871 IRS-THIRD PARTY 26USC 7609 ,/ 375 FALSE CLAIMS 400STATE REAPPORTIONMENT ( ]410ANTITRUST I 1430 BANKS & BANKING I )450 COMMERCE I ]460 DEPORTATION I )470 RACKETEER INFLIJ. ENCED & CORRUPT ORGANIZATION ACT (RICO) I 1480 CONSUMER CREDIT I )490 CABLEISA TElliTE TV I )850 SECURITIES/ COMMODITIES/ EXCHANGE ( )8900THERSTATUTORY ACTIONS ( ]891 AGRICULTURAL ACTS I )893 ENVIRONMENTAL MATTERS I l 895 FREEDOM OF INFORMATION ACT I ] 896 ARBITRATION I ) 899 ADMINISTRATIVE PROCEDURE ACTIREVIEWOR APPEAL OF AGENCY DECISION ( ]950 CONSTITUTIONALITY OF STATE STATUTES THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D. N.Y.? DEMAND $479,000 OTHER __ X ___ JUDGE ___________ DOCKETNUMBER. _____ _ Check YES only if demanded in CO!!JPiaint JURY DEMAND: 0 YES I!NO NOTE: You must also submit at the time of filing the Statement of Relatedness form (Form IH-32).

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  • JS44C/SDNY REV.41201~ ThJ~~~-~!~:"~"~ :..,..:;::::::~~~~ ~'i.-M~ .. ;,. ""fit)MA r5. 2 J ?otc;

    pleadings or other papers as required by law. excepl as provided by local rules of court. This form. approved Judicial Conference of the United Slates in Seplember 1974, is required for use of the Clerk of Court for the pu se '.:) initiating the civil docket sheet ~

    PLAINTIFFS KEURIG GREEN MOUNTAIN, INC.

    ATIORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER Joseph E. Czerniawski Wormser, Kiely, Galef & Jacobs LLP 825 Third Avenue, 26 Fl., New York_, New York 10022-7519

    DEFENDANTS GLOBAL BARISTAS, LLC

    A ITORNEYS (IF KNOWN)

    CAUSE OF ACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSij (DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY)

    Has this action, case, or proceeding, or one essentially the same been previously filed in SONY at any time? NffiesClJudge Previously Assigned

    If yes, was this case Vol. D lnvol. D Dismissed. No D Yes D If yes, give date _________ & Case No.---------IS THlS AN IHTERNAnONAL ARSITRAnON CASEl No [!) Yes D (PlACE AN [xJ /NONE BOX ONLY}

    CONTRACT

    11110 ( ]120 ( 1130 ( ]140 ( 1150

    1 ]151 11152

    I 1153

    ( )160

    I 1190 ( 1195

    INSURANCE MARINE MillER ACT NEGOTIABLE INSTRUMENT RECOVERY OF OVERPAYMENT & ENFORCEMENT OF JUDGMENT MEDICARE ACT RECOVERY OF DEFAULTED STUDENT LOANS (EXCL VETERANS) RECOVERY OF OVERPAYMENT OF VETERAN'S BENEFITS STOCKHOLDERS SUITS OTHER CONTRACT CONTRACT PRODUCT LIABILITY

    I 1196 FRANCHISE

    REAL PROPERTY

    11210 LAND CONDEMNATION ( I 220 FORECLOSURE

    I ]230 RENTLEASE & EJECTMENT [ I 240 TORTSTO LAND

    I 1245 TORT PRODUCT LIABILITY

    I ]290 All OTHER REAL PROPERTY

    TORTS

    PERSONAL INJURY

    I 1310 AIRPLANE I ]315 AIRPLANE PRODUCT

    LIABILITY ( I 320 ASSAULT. LIBEL & SLANDER

    I )330 FEDERAL EMPLOYERS' LIABILITY

    I )340 MARINE I )345 MARINE PRODUCT

    LIABILITY I 1350 MOTOR VEHICLE ( 1355 MOTOR VEHICLE

    PRODUCT LIABILITY I ]360 OTHER PERSONAL

    INJURY I )362 PERSONAL INJURY

    MED MALPRAcnCE

    AcnONSUNDERSTA~

    OVILRIGHTS

    I )440 OTHER CIVIL RIGHTS (Non-Prisoner)

    1)441 VOTING ( 1442 EMPLOYMENT I 443 HOUSINGI

    ACCOMMODATIONS ( )445 AMERICANS WITH

    DISABILITIES EMPLOYMENT

    ( )446 AMERICANS WITH DISABILITIES -OTHER

    ( 1448 EDUCATION

    Check if demanded in complaint:

    D CHECK IF THIS IS A CLASS ACTION UNDER F.R.C.P. 23

    NATURE OF SUIT

    PERSONAL INJURY FORFEJTUREIPENALTY I )367 HEALTHCAREI PHARMACEUTICAL PERSONAL 1 )625 DRUG RELA TEO INJURYIPRODUCT LIABILITY SEIZURE OF PROPERTY ( ] 365 PERSONAL INJURY 21 USC 881

    PRODUCT LIABILITY I 1368 ASBESTOS PERSONAL ( 1690 OTHER

    INJURY PRODUCT LIABILITY

    PERSONAL PROPERTY

    11 370 OTHER FRAUD 371 TRUTH IN LENDING

    [ )380 OTHER PERSONAL PROPERTY DAMAGE

    I )385 PROPERTY DAMAGE PRODUCT LIABILITY

    PRISONER PEnnONS ( )463 ALIEN DETAINEE I )510 MOTIONS TO

    VACATE SENTENCE 2BUSC 2255

    I )530 HABEAS CORPUS ( 1535 DEATH PENAL TV ( ]540 MANDAMUS & OTHER

    PRISONER CIVIL RIGHTS

    I ]550 CIVIL RIGHTS ( 1555 PRISON CONDITION ( ]560 CIVIL DETAINEE

    LABOR

    ( ]710 FAIR LABOR STANDARDS ACT

    I (720 LABORIMGMT RELATIONS

    I )740 RAILWAY LABOR ACT I ] 751 FAMILY MEDICAL LEAVE ACT (FMLA) ( ]790 OTHER LABOR

    LITIGATION I )791 EMPL RET INC

    SECURITY ACT

    IMMIGRATION

    I 1462 NATURALIZATION APPLICATION

    I )465 OTHER IMMIGRATION ACTIONS

    CONDITIONS OF CONFINEMENT

    AcnONSUNDERSTA~

    BANICJIUPTCY

    I ]422 APPEAL 28 usc 158

    I )423 WITHDRAWAL 28 usc 157

    PROPERTY RIGHTS

    ( 1620 COPYRIGHTS I )830 PATENT ()() 840 TRADEMARK

    SOOAL SECURITY

    ( )861 HIA(139511) I )862 BlACK LUNG (923) I )863 DIWCIOIV'oW (405(g)) ( )864 SSIO TffiE XVI I )865 RSI (405(g))

    FEDERALTAXSUITS

    ( )870 TAXES (U.S. Plainbfl 0t D81ondanl)

    ( 1871 IRS-THIRD PARTY 26USC 7609

    OTIIERSTA~ ,/ 375 FALSE CLAIMS 400STATE

    REAPPORTIONMENT ( ]410ANTITRUST I 1430 BANKS & BANKING I )450 COMMERCE I ]460 DEPORTATION I )470 RACKETEER INFLIJ.

    ENCED & CORRUPT ORGANIZATION ACT (RICO)

    I 1480 CONSUMER CREDIT I )490 CABLEISA TElliTE TV I )850 SECURITIES/

    COMMODITIES/ EXCHANGE

    ( )8900THERSTATUTORY ACTIONS

    ( ]891 AGRICULTURAL ACTS

    I )893 ENVIRONMENTAL MATTERS

    I l 895 FREEDOM OF INFORMATION ACT

    I ] 896 ARBITRATION I ) 899 ADMINISTRATIVE

    PROCEDURE ACTIREVIEWOR APPEAL OF AGENCY DECISION ( ]950 CONSTITUTIONALITY OF STATE STATUTES

    f?Pso?MfA~~ THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D. N.Y.?

    DEMAND $479,000 OTHER __ X ___ JUDGE ___________ DOCKETNUMBER. _____ _ Check YES only if demanded in CO!!JPiaint JURY DEMAND: 0 YES I!NO NOTE: You must also submit at the time of filing the Statement of Relatedness form (Form IH-32).

  • {PLACE AN x IN ONE BOX ONLY) 00 1 Original

    Proceeding .r2 '-' Removed from

    State Court ~ a. 1U p.11rtlu rptHeoned - b. Atleastone

    party Is prose.

    J

    ORIGIN ~ 3 Remanded '-- 4 Reinstated or

    from Reopened Appellate Court

    5 Transferred from (Specify District)

    S Multidlstrict Litigation

    7 Appeal to District ' Judge from

    Magistrate Judge Judgment

    {PLACE AN x INONEBOXONLY) D 1 u.s. PLAINTIFF D 2 u.s. DEFENDANT

    BASIS OF JURISDICTION ~ 3 FEDERAL QUESTION 04 DIVERSITY

    (U.S. NOT A PARTY)

    IF DIVERSITY, INDICATE ClnZENSHIP BELOW.

    CITIZENSHIP OF PRINCIPAL PARTIES (FOR DIVERSITY CASES ONLY) (Place an [X] in one box for Plaintiff and one box for Defendant)

    CITIZEN OF THIS STATE PTF DEF ( )1 ( )1 CITIZEN OR SUBJECT OF A

    FOREIGN COUNTRY

    PTFDEF ( )3 ( )3

    PTF DEF INCORPORATED and PRINCIPAL PLACE ( )5 ( ) 5 OF BUSINESS IN ANOTHER STATE

    CITIZEN OF ANOTHER STATE [: 2 ~ ~ 2 INCORPORATED or PRINCIPAL PLACE ( )4 ( )4 OF BUSINESS IN THIS STATE

    PLAINTIFF(S) ADDRESS(ES) AND COUNTY(IES)

    Keurig Green Mountain, Inc., 33 Coffee Lane, Waterbury, VT 05676 (Washington County)

    DEFENDANT(S) ADDRESS(ES) AND COUNTY(IES)

    Global Baristas, LLC, 2003 Western Avenue, Suite 300, Seattle, WA 981212 (King County)

    FOREIGN NATION ( )6 ( )6

    DEFENDANT(S) ADDRESS UNKNOWN REPRESENTATION IS HEREBY MADE THAT. AT THIS TIME, I HAVE BEEN UNABLE, WITH REASONABLE DILIGENCE, TO ASCERTAIN

    RESIEIENCE ADDRESSES OF THE FOLLOWING DEFENDANTS:

    Check one: THIS ACTION SHOULD BE ASSIGNED TO: 0 WHITE PLAINS (DO NOT check either box if this a PRISONER PETITION/PRISONER CIVIL RIGHTS

    IRI MANHATTAN COMPLAINT.)

    DATE ')(().f (!1/f;NAT~E ~FATT~~y OF RECORD ~~ :fuscp~ C-t.erltttt~l RECEIPT#

    ADMITTED TO PRACTICE IN THIS DISTRICT [] NO [XI YES (DATE ADMIITED Mo. _Fe_b_. _ Yr. 2002 Attorney Bar Code # 4026506

    Magistrate Judge is to be designated by the Clerk of the Court. 14A(i, JUDGE GORENSlim Magistrate Judge------------------------- is so Designated.

    Ruby J. Krajick, Clerk of Court by-----Deputy Clerk, DATED---------UNITED STATES DISTRICT COURT (NEW YORK SOUTHERN)

  • Joseph E. Czemiawski E TORRES Wormser, Kiely, Galef and Jacobs Lu:JUDG 825 Third A venue, 26th Fl. New York, New York 10022-7519 Tel: (212) 687-4900 Fax: (212) 687-5703

    Attorneys for Plaintiff Keurig Green Mountain lnc';l il 4 (-for ~ ~

    UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK

    KEURIG GREEN MOUNTAIN, INC., flk/a Green Mountain Coffee Roasters, Inc., a Delaware corporation,

    v.

    GLOBAL BARISTAS, LLC,

    Plaintiff,

    a Washington limited liability corporation,

    Defendant.

    -Civ.-

    COMPLAINT FOR INJUNCTIVE RELIEF AND DAMAGES

    ....., c= c:

    - (/) en =r: Cl ~ 0

    N ~-q o ?ir -r; -Ofol :z ~ -~c _ .. :< U1 g

    For its Complaint against Defendant Global Baristas, LLC ("Global Baris~"),~ Plaintiff Keurig Green Mountain, Inc., flk/a Green Mountain Coffee Roasters, Inc.,

    ("Keurig") states as follows:

    I. Keurig brings this action against its licensee Global Baristas - which

    operates retail coffee locations and sells licensed product under Keurig's TULLY'S

    brand - for injunctive relief and damages resulting from Global Baristas' breach of the

    parties' License Agreement, breach of the parties' Supply Agreement, violation of the

  • Federal Lanham Act, and violation of related state and common law claims that arise out

    of the same operative facts.

    THE PARTIES

    2. Keurig is an industry leader in specialty coffee and coffee brewers,

    recognized for its award-winning coffees and innovative brewing technology. Keurig

    markets its patented KEURIG brewers and its K-CUP pack beverage cartridges and

    VUE pack beverage cartridges used with its brewers through distributors, retail, and

    direct channels for use in offices, homes, and hotel rooms around the world. Its K-CUP

    packs and VUE packs are produced under a variety of brands, including those owned by

    Keurig and by third-parties.

    3. Keurig is a Delaware corporation with its principal place of business

    located at 33 Coffee Lane, Waterbury, Vermont 05676.

    4. Defendant Global Baristas is a Washington limited liability corporation

    with its head offices located at 3100 Airport Way South, Seattle, Washington 98134.

    JURISDICTION AND VENUE

    5. This court has subject matter jurisdiction pursuant to 15 U.S.C. 1121, 28

    U.S.C. 1331,28 U.S.C. 1332, 28 U.S.C. 1338, and 28 U.S.C. 1367.

    6. This court has personal jurisdiction because the parties consented to

    jurisdiction in this Court pursuant to the parties' License Agreement and Supply

    Agreement.

    -2-

  • 7. Venue is proper in this District because the parties prospectively agreed

    that any disputes under the parties' License Agreement and Supply Agreement shall be

    venued in any court in New York.

    FACTUAL BACKGROUND

    8. On January 25, 2013, Keurig and Global Baristas entered into three

    agreements: a License Agreement (a true and correct copy of which is attached hereto as

    Exhibit A), a Supply Agreement (a true and correct copy of which is attached hereto as

    Exhibit B), and a NonCompetition Agreement (a true and correct copy of which is

    attached hereto as Exhibit C). (The agreements were entered before Keurig's name

    changed on March 6, 20 14, and thus, the contracting party in each of the three

    agreements is identified as Green Mountain Coffee Roasters, Inc., now Keurig Green

    Mountain, Inc.)

    The License Agreement

    9. As set forth on the Exhibits to the License Agreement, Keurig owns

    approximately 85 applications and registrations worldwide for marks

    incorporating the word TULLY'S (hereafter, "the TULLY'S

    Marks"), and many of those marks in the United States are

    incontestably registered, such as the one to the right.

    z [ g ~ [ ~ TuLLY's

    COfFEE

    ~ ffi ~ ~ ~ p

    10. In addition, Keurig also owns the business names Tully's, Tully's Roaster

    of Fine Coffee, and Bellaccino (together with the TULLY'S Marks, the "Licensed

    Marks").

    - 3-

  • 11. Keurig uses the TULLY's Marks for coffee

    sold in K -CUP packs and VUE packs usable in

    KEURIG coffee brewers and on packages for the packs,

    such as those shown to the right.

    12. Keurig also uses the TULLY's Marks for

    coffee sold by food service providers, such as cafeterias,and bagged coffee sold in

    grocery stores.

    13. Under the License Agreement and as set forth more fully therein, Keurig

    granted Global Baristas an exclusive, perpetual, fully paid up, non-transferable (except as

    provided in the License Agreement), license to use the Licensed Marks to sell TULLY'S

    coffee (defined as "Licensed Products" in the License Agreement) at Licensed Retail

    Stores (as defined in the License Agreement), as well as related merchandise bearing the

    Licensed Marks (hats, tee shirts and the like), and to maintain a website

    (www.tullyscoffeeshops.com) (hereafter, the "Website") for the purpose, among others,

    of providing information to consumers. By the terms of the License Agreement, Global

    Baristas could use the Licensed Marks on or in connection with the Licensed Products

    only as provided for in the License Agreement.

    14. Under the License Agreement, Global Baristas is required to obtain coffee

    to be sold in the Licensed Stores from Keurig.

    -4-

  • 15. The License Agreement provides that, in limited circumstances and only

    with the pre-approval of Keurig, Global Baristas may be permitted to obtain coffee from

    an authorized "Secondary Vendor" as follows:

    During the Terms of this Agreement, [Global Baristas] shall be permitted to source the Licensed Products through other suppliers ("Secondary Vendors") only upon (i) termination of the Supply Agreement or (ii) as set forth in the Supply Agreement. All Secondary Vendors shall meet [Keurig]' s quality and service standards for sourcing, roasting, packaging, labeling, storage and transportation of coffee, and such other standards or specifications as reasonably established by [Keurig] from time to time (the "Roasting Standards'), and all applicable quality standards and compliance with law and regulation provisions set forth in this Agreement. [Keurig] shall have the right to reject any Secondary Vendor selected by [Global Baristas] to roast or, as applicable, to package coffee beans if [Keurig] reasonably determines that such vendor does not have the financial capacity, proper facilities, expertise or experience to perform all of the functions required to deliver packaged roasted coffee bean and ground coffee to the Roasting Standards. Prior to [Global Baristas] commercial sale of any Licensed Products supplied by a Secondary Vendor under this Agreement and the License Agreement, samples of such products and any applicable packaging shall be sent to [Keurig] and [Keurig] shall have the right to reasonably reject any product or packaging that fails to meet [Keurig] 's quality standards.

    16. Paragraph X(b) of the License Agreement also requires that prior to being

    approved as a Secondary Vendor, any prospective Secondary Vendor must agree to

    inspections by Keurig, and must agree to conduct regular quality control checks and to

    provide commercially reasonable reports to Keurig based on the checks.

    17. Moreover, under the License Agreement, Keurig retained control over the

    use and promotion of the TULLY'S Marks. For example, the License Agreement

    provides that the "parties acknowledge and agree that [Keurig] shall have the absolute

    - 5 -

  • right to approve [Global Baristas'] use of and manner of use of the Licensed Marks in

    any Promotional and Advertising Material.'~ License Agreement, ~III( a).

    18. "Promotional and Advertising Material" is defined in the License

    Agreement to mean labels, packaging, advertising, brochures, catalogues and other

    written or graphic material, all advertising, including television, radio, newspaper and

    other media advertising, signage, stationary, store and point-of-sale displays, and all other

    materials upon which any of the Licensed Marks are placed.

    19. A breach of the Supply Agreement constitutes a breach of the License

    Agreement. Paragraph XI of the License Agreement addresses termination and provides

    that the License Agreement may be terminated by either party upon written notice to the

    other party in the event of any breach of a material obligation under the License

    Agreement, the Supply Agreement and the Non-Competition Agreement, which the

    receiving party fails to cure within thirty (30) days after receiving such notice.

    20. The License Agreement requires that upon immediately upon termination,

    Global Baristas must cease all use of the Licensed Mark, except for limited, defined uses.

    The parties agreed that irreparable damage would occur if the License Agreement were

    breached.

    The Supply Agreement

    21. Pursuant to the Supply Agreement, Global Baristas agreed to purchase all

    of its requirements for coffee and other Licensed Goods from Keurig for use consistent

    with the License Agreement.

    -6-

  • 22. Payment for any product provided by Keurig was to be due within thirty

    (30) days after the date of shipment from Keurig.

    23. The Supply Agreement had an initial term of one year, and was to be

    renewed thereafter for additional one-year terms unless either party provided written

    notice of non-renewal in accordance with the terms of the Supply Agreement.

    Global Baristas Wrongful Actions

    24. Keurig has learned that Global Baristas has violated the License Agreement

    and the Supply Agreement.

    25. As confirmed in a Seattle Times newspaper article dated April 19, 20 14,

    Global Baristas has been purchasing and is using coffee in its Licensed Retail Stores that

    is not from or approved by Keurig. According to the article, Global Baristas "is not

    restocking the old bagged coffee and is selling fresh beans roasted by Dillanos Coffee

    Roasters, a company based in Sumner." Michael Avenatti of Global Baristas explained

    in the article: "Dillanos is roasting 'various blends for [Global Baristas], which [Global

    Baristas is] experimenting with to complement the Tully's 'heritage blends."'

    26. The License Agreement gives Keurig the right to approve any Secondary

    Vendor before the Secondary Vendor can be used. Keurig has never approved Dillanos

    or any other vendor as a Secondary Supplier under the License Agreement and has never

    told Global Baristas that it could use Dillanos or any other vendor as a Secondary

    Supplier. And despite notice from Keurig, such use continues.

    -7-

  • 27. Thus, on information and belief, the coffee currently being sold by Global

    Baristas in the Licensed Retail Stores under the Licensed Marks does not meet Keurig~ s

    quality standards for the Licensed Marks. The use of the Licensed Marks on and in

    association with the unapproved product violates the License Agreement.

    28. On information and belief, and according to the same

    April 19, 2014, Seattle Times article, Global Baristas also changed

    the packaging for TULLY' s bagged coffee sold in the Licensed Retail Stores from prior Keurig-approved packaging to brown paper

    bag packaging such as that shown to the right.

    29. Such packaging was never submitted to nor approved

    by Keurig. Global Baristas' use of unapproved packaging in connection with the

    Licensed Goods violates the terms of the License Agreement.

    30. Keurig learned through a media report that Global Baristas and the

    International Motor Sports Association ("IMSA") have entered a multi-year agreement

    allegedly making coffee sold under the TULLY'S Marks the "Official Coffee of the

    Tudor United SportsCar Championship." Global Baristas did not seek nor obtain

    Keurig's approval of the sponsorship agreement involving the Licensed Marks with the

    IMSA despite the explicit requirements of the License Agreement to do so. Global

    Baristas' use of the Licensed Marks in connection with events sponsored or hosted by the

    IMSA is unauthorized and without the consent of Keurig.

    -8-

  • 31. As of January 23, 2014, Global Baristas owed Keurig approximately

    $469,110.37, for Licensed Product, which was more than 30 days past due. On January

    23, 2014, Keurig notified Global Baristas of its past due status and requested payment of

    the $469,110.37. Global Baristas' failure to pay Keurig this amount constitutes a breach

    of the Supply Agreement.

    32. On March 28, 2014, Keurig sent Global Baristas an official notice of breach

    of the License Agreement (the "Notice"). The Notice identified as breaches Global

    Baristas' failure to pay the amounts due and owing under the Supply Agreement, its

    failure to obtain Keurig's prior consent before using a Secondary Vendor for Licensed

    Goods, and for entering into a multi-year sponsorship agreement with the International

    Motor Sports Association using the Licensed Marks without prior approval from Keurig.

    In its letter and as required under the License Agreement, Keurig gave Global Baristas 30

    days to cure all defaults.

    33. The cure period expired on April 27, 2014, and Global Baristas has failed

    to cure any of the noticed defaults. Global Baristas did tender a check to Keurig in the

    amount of $476,147.03 ($469,110.37 plus interest), but on May 1, 2014, the check was

    rejected as NSF (returned unpaid because not sufficient funds).

    34. Because Global Baristas failed to timely cure the breach, the License

    Agreement terminated as of April27, 2014.

    -9-

  • COUNT I (Violation of 15 U .S.C. 1114(a))

    35. Keurig adopts and re-alleges the preceding paragraphs as if fully restated

    herein.

    36. Keurig is the owner of the United States trademark registrations for the

    TULLY'S Marks in U.S. Registration Nos. 2369199, 3399874, 2976090, 2976089,

    2934857,2947750,2927948,2934899,2936078,2908497,2787759,2936468,2908498,

    2806015,2906503,2928741,2980788,2934768,2906504,2912974,and2910741,allof

    which are valid, subsisting, and incontestable. Keurig also is the owner of the United

    States trademark registrations for the TULLY'S Marks in U.S. Registration Nos.

    3769395,3782982,3782981,3876310,3810894,3889182,4090420,and3990703,allof

    which are valid and subsisting. Copies of the certificates of registration are attached

    hereto as Exhibit D.

    37. Global Baristas' actions, described above, constitute unauthorized use in

    commerce of a registered mark in connection with the sale and advertising of goods and

    such use is likely to cause confusion or to cause mistake or to deceive as to the origin of

    the goods sold by Global Baristas.

    38. As such, Global Baristas' actions violate 15 U.S.C. 1114(a).

    39. Global Baristas' actions have caused, and unless restrained by the Court,

    will continue to cause Keurig and the goodwill associated with Keurig's protected

    Licensed Marks serious and irreparable injury. Keurig is entitled to injunctive relief

    - 10-

  • enjoining Global Baristas from any unauthorized use of the Licensed Marks. Keurig has

    no adequate remedy at law because the harm it is suffering is difficult to quantify, such

    that damages along cannot fully compensate Keurig for its loss.

    40. Global Baristas' actions have caused damages to Keurig in an amount to be

    proven at trial. Global Baristas' infringement is willful, and damages should be trebled

    as permitted by applicable law.

    COUNT II (Violation of 15 U.S.C. 1125(a))

    41. Keurig adopts and re-alleges the preceding paragraphs as if fully restated

    herein.

    42. Global Baristas' actions described above, including but not limited to its

    use of the Licensed Marks on unapproved packaging, its use of the Licensed Marks in

    association with coffee sourced from an unapproved Secondary Vendor, its continued use

    of the Licensed Marks on the Website, its use of the Licensed Marks in advertising and

    promotions not approved by Keurig, and any ongoing use of the Licensed Marks in

    advertising and/or promotions, constitute use in interstate commerce of a word, term,

    name, symbol, or device, or any combination thereof, and a false designation of origin,

    which is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation,

    connection, or association of Global Baristas with Keurig, or deceive as to the origin,

    sponsorship, or approval of Global Baristas' goods and commercial activities by Keurig,

    in violation of 15 U.S.C. 1125(a).

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  • 43. Global Baristas's actions have caused, and unless restrained by the Court,

    will continue to cause Keurig and the goodwill associated with Keurig~s protected

    Licensed Marks serious and irreparable injury. As such, Keurig is entitled to injunctive

    relief enjoining Defendant from any use of the Licensed Marks, except in the very limited

    and explicitly enumerated ways as set forth in the License Agreement. Keurig has no

    adequate remedy at law because the harm it is suffering is difficult to quantify, such that

    damages along cannot fully compensate Keurig for its loss.

    44. Global Baristas' actions have caused damages to Keurig in an amount to be

    proven at trial. Global Baristas~ infringement is willful, and damages should be trebled

    as permitted by applicable law.

    COUNT Ill

  • 48. Keurig is entitled to an order enjoining Global Baristas from continued

    operation of the Website and requiring Global Baristas to cause the Website to be taken

    down from the Internet.

    herein.

    COUNT IV

  • COUNTV (Common Law Unfair Competition)

    55. Keurig adopts and re-alleges the preceding paragraphs as if fully restated

    herein.

    56. Global Baristas~s actions constitute unfair competition under the common

    law.

    57. Keurig has been damaged by Global Baristas' s actions in an amount to be

    proven at trial.

    COUNT VI (Breach of the License Agreement)

    58. Keurig adopts and re-alleges the preceding paragraphs as if fully restated

    herein.

    59. Global Baristas actions described above, including but not limited to its

    failure to get Keurig pre-approval for the IMA multi-year sponsorship, its failure to get

    Keurig pre-approval for new packaging, its failure to get Keurig pre-approval for a

    Secondary Vendor, its use of the Licensed Mark on products, and advertising and

    promotions that have not been approved by Keurig, and its breach of the Supply

    Agreement, violate the License Agreement.

    60. As a proximate result of Global Baristas's breach of the License

    Agreement, Keurig has suffered damages in amount exceeding $75,000, exclusive of

    interest and costs.

    - 14-

  • IC''''

    COUNT VII (Breach of the Supply Agreement)

    61. Keurig adopts and re-alleges the preceding paragraphs as if fully restated

    herein.

    62. Global Baristas's actions described above, including its failure to pay

    $469,110.37 for product ordered from and delivered by Keurig, violate the Supply

    Agreement.

    63. As a proximate result of Global Baristas's breach of the Supply Agreement,

    Keurig has suffered damages in excess of $75,000, exclusive of interest and costs.

    WHEREFORE, Keurig Green Mountain, Inc. respectfully request this Court enter:

    A. Judgment in favor of Keurig on each of its claims against Global Baristas,

    LLC, in an amount to be proven at trial;

    B. A permanent injunction against Global Baristas, LLC, restraining it, its

    officers, agents, representatives, employees, parents, subsidiaries, related companies,

    licensees, successors, assigns, and all persons acting in concert or participation with

    Global Baristas, LLC from: (1) directly or indirectly infringing Keurig's Licensed Marks

    (2) engaging in acts or activities to unfairly compete with Keurig, and (3) otherwise

    engaging in any acts or conduct that would cause consumers to erroneously believe that

    Global Baristas's goods are somehow sponsored by, authorized by, licensed by, approved

    by, or in any way associated with Keurig or any of its brands, including the TULLY'S

    Marks;

    - 15-

  • c. Judgment in favor of Keurig for its reasonable attorneys' fees, expenses,

    and costs incurred in this action; and

    D. Any other and further relief the Court deems just and equitable.

    Dated: New York, NY May 21,2014

    Respectfully submitted,

    By:J-~0d , ~osep~Czerniawski

    and

    WORMSER, KIELY, GALEF & JACOBS LLP 825 Third A venue New York, NY 10022 Telephone: 212.687.4900 Facsimile: 212.687.5703 jczerniawski@wkgj .com

    Cynthia A. Moyer (to be admitted pro hac vice) Dean R. Karau (to be admitted pro hac vice) Nicole M. Moen (to be admitted pro hac vice) FREDRIKSON & BYRON, P.A. 200 South Sixth Street, Suite 4000 Minneapolis, Minnesota 55402-1425 Telephone: (612) 492-7000 Facsimile: ( 612) 492-7077 E-mail: [email protected]

    cmoyer@fredlaw .com nmoen@fredlaw .com

    Attorneys for Plaintiff Keurig Green Mountain, Inc. L:\llllgation\10624 GREEN MTN INC\00001\KeurigGM Complaint 05-21-14.doc

    - 16-