McCormick sues cannabis company over parody sticker

Annapolis, Maryland-based cannabis company Crabcakes & Cannabis® removed a popular parody sticker after receiving a cease-and-desist letter from McCormick & Company, Incorporated, the maker of Old Bay® seasoning, which said its sticker was their own too similar to Old Bay logo.

Crabcakes & Cannabis took the opportunity to challenge the impact of a Supreme Court decision last June that impacts all types of small businesses. The issue raises the question of whether we are going too far with trademark laws when parodies are not allowed.

The novelty sticker parodies the Old Bay spice jar, but ultimately sparked a lawsuit as McCormick alleged trademark infringement and image damage by its association with cannabis.

“While we strongly believe in protecting parody and First Amendment rights, the prohibitive costs of litigation have led us to make the difficult decision to discontinue our parody sticker,” said Jennifer Culpepper, founder of Crabcakes & Cannabis, in a statement. We stand by this fact that no reasonable consumer would confuse our novelty with a food seasoning product.”

McCormick & Company’s cease-and-desist letter alleges that the parody sticker, which reads “420 BUD” and has a design reminiscent of Old Bay glass, infringes on their trademarks and trade dress and may be damaging to the brand’s reputation.

In the letter, McCormick stated that the company “takes this matter very seriously as it does not involve the sponsorship of products related to marijuana use.”

Culpepper continued, “We deeply respect the rights of companies (and artists) to protect their brands, but it is paramount that we strike a balance between these rights and the freedom of expression and creativity that parody provides.” When a large corporation harasses a small business through costly litigation, it is nearly impossible to stand up for your rights. Regardless, we still love Old Bay. Our parody sticker was intended to be a tribute to the Maryland brand and not to tarnish anyone’s reputation.”

Culpepper also owns Brand Joint, a national trademark agency, and has been on the other side of a copyright infringement lawsuit in the past. She explained, “We’ve always been careful not to copy, but to create fun and unique parody designs that celebrate Maryland icons.”

The company hopes that something good can come out of the incident for the better.

Culpepper concluded: “We hope this experience will spark a broader discussion about the importance of protecting parody and freedom of expression in our society.”

Jack Daniel’s SCOTUS decision

Last June, dog toy maker Bad Spaniels filed a lawsuit saying the company copied elements of Jack Daniels in violation of trademark laws.

Jack Daniel’s Properties v. VIP Products objected to the use of images similar to Jack Daniel’s trademarks by a manufacturer that sells a line of dog toys that poke fun at various beverage companies. Judge Elena Kagan said there were four main elements used by Bad Spaniels that violated trademark laws:

• The toy “is approximately the same size and shape as an ordinary bottle of Jack Daniel’s”;
• The “fake bottle” follows the original and uses a “black label with stylized white text and a white filigree border”;
• The toy’s product name (Bad Spaniels) is “in a similar font and arch” to the Jack Daniel’s bottle; And
• “Old No. 2 On Your Tennessee Carpet” replaces “Old No. 7 Tennessee Sour Mash Whiskey”.

All members of the court agreed with Judge Kagan’s opinion that this toy constituted a reprehensible infringement of the Jack Daniel’s trademarks.

Cannabis and candy trademark cases

A number of other cannabis companies have faced similar lawsuits – particularly over cannabis products that imitate or parody major candy brands.

Cone maker Mars Wrigley won a lawsuit in August 2022 against cannabis companies that copied the candy. Mars initially filed the lawsuit in May 2021, alleging that the illegal retailers infringed Mars’ registered trademarks.

Mars Canada Inc., the global confectionery giant, and Mars Wrigley, which markets confectionery products such as M&M’S®, SNICKERS®, ORBIT®, EXTRA® and Skittles®, recently settled a lawsuit over the use of the Skittles logo on illegal cannabis products. On August 12, federal judge Patrick Gleeson ruled that three online cannabis retailers “supply and destroy all infringing products and packaging” and also pay varying amounts for infringing Mars’ trademark.

In August 2017, the Ohio-based glue company that makes Gorilla Glue sued GG Strains for using “Gorilla Glue” in numerous strain names. In February 2018, the company took action against cannabis companies that infringed on Hershey’s Chocolate branded products. In February 2019, a group of delivery companies called United Pot Smokers, UPS420 and THCPlant were taken to court by UPS (United Parcel Service) for misleading branding. Later in July 2019, candy maker Sour Patch Kids targeted an illegal cannabis edible product called “Stoney Patch” for trademark infringement.