In a recent article by Modern Restaurant Management, Nate Quirk, an intellectual property partner in Burr’s Charlotte office, shared insights into the trademark dispute between Whatabrands LLC, the parent company of Whataburger, and North Carolina-based What-A-Burger #13 (collectively WAB13). The Q&A-style article, “What’s in a Name? Protecting a Brand Trademark,” broke down Whatabrands’ lawsuit alleging trademark infringement, unfair competition, and breach of contract against WAB13 after the company attempted to circumvent a coexistence agreement by forming a new entity not subject to the original terms.

Nate emphasized the importance of trademark protection, especially for brands looking to expand. He noted that Whatabrands’ federally registered trademark, established in 1957, gives it a strong position in this dispute, potentially making it difficult for WAB13 to continue operating under its current name.

Looking at the wider food and beverage industry, Nate also highlighted the need for businesses to secure unique trademarks and federal registrations to avoid similar legal challenges as they grow. “In most instances, protection of the trademarked brand is of utmost importance,” said Nate. “Trusted brands can demand higher prices and maintain customer loyalty, which are both keys to a profitable business. The cost of a U.S. Federal Trademark Application for a growing business is very small relative to the value of the trademark and the goodwill that can be developed in the trademark.”

To view the full article on the Modern Restaurant Management Website, click here. No subscription required.