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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION VPC PIZZA OPERATING CORP. and VPC PIZZA IP, LLC, JURY TRIAL DEMANDED Plaintiffs, v. GIORDANO ITALIAN DELICATESSEN, INC. d/b/a GIORDANO FRESH & CRISPY PIZZA CO., Defendant. No.
COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF Plaintiffs VPC PIZZA OPERATING CORP. and VPC PIZZA IP, LLC (collectively Giordanos), by and through their attorneys, Vedder Price P.C., for their Complaint against Defendant GIORDANO ITALIAN DELICATESSEN, INC. d/b/a GIORDANO FRESH & CRISPY PIZZA CO. (Defendant), state as follows: INTRODUCTION Giordanos is the owner of the Giordanos brand name and the franchisor of Giordanos restaurants. Defendant is unlawfully using Giordanos trademarks related to the Giordanos brand name in its competitive pizza business called Giordano Fresh & Crispy Pizza Co. Giordanos seeks injunctive and other relief against Defendant due to its unlawful use of Giordanos trademarks. Defendants actions violate the Lanham Act, Title 15, Illinois common law, the Illinois Uniform Deceptive Trade Practices Act (815 I.L.C.S. 510), the Illinois Consumer Fraud and Deceptive Business Practices Act (815 I.L.C.S. 505) and the Illinois Trademark Registration and Protection Act (765 I.L.C.S. 1036). If Defendant is allowed to
continue to make unauthorized use of the Giordanos marks, Giordanos will suffer irreparable harm, for which monetary damages will not provide an adequate remedy. PARTIES, JURISDICTION AND VENUE 1. Plaintiff VPC Pizza Operating Corp. is a Delaware corporation with its principal
place of business in Chicago, Illinois. VPC Pizza Operating Corp. is the holding company for 15 affiliated LLCs which own, franchise and operate Giordanos restaurants throughout the Chicagoland area and around the country. 1 2. Plaintiff VPC Pizza IP, LLC, is a Delaware LLC and is wholly owned by VPC
Pizza Operating Corp. VPC Pizza IP, LLC owns the trademarks and intellectual property rights for Giordanos brand name. 3. Defendant is a dissolved Illinois corporation. According to publicly-available
records of the Illinois Secretary of State, Defendant was involuntarily dissolved on Aug. 10, 2012. Defendant, however, recently started operating a restaurant named Giordano Fresh & Crispy Pizza Co. located at 2021 West Ogden Avenue, Downers Grove, Illinois. Pursuant to publicly-available information with the DuPage County Department of Health, an entity known as Giordano Italian Delicatessen, Inc. (i.e., Defendant) was issued a permit to operate a food establishment out of the 2021 West Ogden Avenue location in Downers Grove, Illinois. In
addition, in publicly available telephone directories Giordano Italian Deli (i.e. Defendant) operates out of 2021 West Ogden Avenue and has listed the same telephone number as is listed on the Giordano Fresh & Crispy Pizza menu. 4. This action arises under the Lanham Act, Title 15, Illinois common law, the
Illinois Uniform Deceptive Trade Practices Act (815 ILCS 510) and the Illinois Consumer Fraud
1
VPC Pizza Operating Corp is the successor-in-interest to Giordanos International Franchise Systems, Inc. and Americas Best Pizza, Inc. d/b/a Giordanos/Americas Best Pizza, Inc.
and Deceptive Business Practices Act (815 ILCS 505). Giordanos seeks injunctive relief and actual damages, including Defendants profits derived from its unauthorized trademark use and Giordanos costs and attorneys fees under 15 U.S.C. 1117 and 815 ILCS 510/3. 5. This court has jurisdiction over the matters raised herein pursuant to 28 U.S.C.
1331, 28 U.S.C. 1338(a) and (b), and 28 U.S.C. 1367(a). 6. Venue in this matter is proper in this district because Defendant regularly does
business in this District and pursuant to 28 U.S.C. 1391(b) and (c). ALLEGATIONS COMMON TO ALL COUNTS 7. Giordanos owns and claims common law rights under the trademark Giordanos,
for use in connection with its restaurant services, including its sales of pizza, subs, salads, pasta, and other Italian foods (the GIORDANOS Mark). 8. Giordanos owns U.S. Federal Trademark Registration Nos. 1,160,481, 2,824,400
(the Registered Marks). Both of these registrations are for the expression Giordanos for use in connection with its provision of restaurant services. Copies of the registration certificates of the Registered Marks are attached hereto as Exhibit 1. 9. 10. The Registered Marks have become incontestable pursuant to 15 U.S.C. 1065. Giordanos owns two trademark registrations in the state of Illinois: Registration the Illinois Marks). Copies of
trademark registration records from the Illinois Secretary of State are attached hereto as Exhibit 2. 11. The GIORDANOs Mark, the Illinois Marks and the Registered Marks have been
continuously used in commerce in connection with restaurant services since at least 1974.
12.
Giordanos operates and licenses others to use the GIORDANOS Mark, the
Illinois Marks and the Registered Marks and to operate restaurants under the marks in Illinois and elsewhere. 13. Since 1978, Giordanos, as franchisor, has been engaged in owning, operating and
supervising restaurants serving pizza, subs, salads, pastas and other related food products and beverages. 14. Giordanos currently has, at least, 40 restaurants located in and around the greater
Chicagoland area, including one in Downers Grove, Illinois. A complete list of restaurants and their locations is available at: http://giordanos.com/our-locations/ . 15. The Giordanos brand name, including the GIORDANOS Mark, the Illinois
Marks and the Registered Marks, is well-known and famous in the Chicagoland area, in Illinois and throughout the United States. 16. The services and goods offered by Giordanos and Giordanos licensees under the
GIORDANOS Mark and the Registered Marks have been recognized in the industry as Chicagos Best Pizza by NBC, CBS Chicago, the New York Times, Chicago Magazine, Chicago Tribune, Chicago Eater, Home & Garden Magazine, and Concierge Preferred, among other publications. 17. The GIORDANOs Mark, the Illinois Marks and the Registered Marks identify
the source of the goods and services of Giordanos and Giordanos licensees in the minds of consumers in the marketplace. 18. Defendant recently opened a restaurant located at 2021 W. Ogden Avenue in
Downers Grove, Illinois serving pizza, subs, salads, pasta, and other Italian foods and operates under the name GIORDANO (the Infringing Mark). Defendants restaurant is
approximately two miles (5 minutes by car) from a Giordanos lawfully licensed franchise located at 5115 Main Street in Downers Grove, Illinois and directly competes with Giordanoss lawfully licensed franchisee. A scanned image of a menu from Defendants restaurant is shown below and attached hereto as Exhibit 3:
Back
Front
Inside Page 2
Defendants signage in front of its premises also prominently displays and A copy of said signage is
Defendants use of the Infringing Mark in relation to its restaurant has caused
confusion and is likely to continue to cause confusion in the marketplace in that the Infringing Mark incorporates the GIORDANOS Mark and the services provided by Defendant under the Infringing Mark are identical to the services provided by Giordanos or its licensees under the GIORDANOS Mark, the Illinois Marks and the Registered Marks in their Giordanos restaurants. 21. On Sunday, August 25, 2013 at 11:04 p.m., Giordanos received an email from a
customer through its Giordanos.com website advising that the customer went to the Defendants
GIORDANO location to purchase pizza thinking the Defendant was an authorized Giordanos franchise. A true and correct copy of the email Giordanos received is attached as Exhibit 5. 22. According to the customer who sent the August 25, 2013 email, the pizza was
horrible and the customer later determined that the Defendant was not affiliated with Giordanos. The customer noted that Defendants menu stapled to the pizza box looked like your logo (to the untrained eye) and that it was a little too close for comfort. (See Exhibit 5.) 23. Defendant is certainly aware of the GIORDANOS Mark as is demonstrated by
Defendants inconspicuous notation on the back of Defendants menu (see above) that states Not affiliated with Giordanos Pizza. 24. Defendant knowingly uses the Infringing Mark to exploit and misappropriate the
goodwill and reputation of Giordanos that is based on Giordanos and Giordanos licensees uses of the GIORDANOS Mark, the Illinois Marks and the Registered Marks. 25. Over the past forty years, Giordano's has also developed a unique and secret
recipe and for the preparation of its pizza and other Italian-themed food items, and has developed unique and secret methods of operating restaurants which serve pizza, pasta, salads, submarine sandwiches other related food products, and has developed other unique and secrets methods pertaining to related restauranteur activities (the "Confidential Information and Trade Secrets"), all under the trade name and GIORDANOS Mark. 26. Giordanos takes numerous steps to invest in and protect its unique brand name,
intellectual property and GIORDANOs Mark. 27. Giordanos take numerous other steps to promote and protect its brand, including:
(a) Enforcing its trademarks, service marks and other intellectual property against individuals or entities who attempt to unlawfully use the Giordano's brand name or trademark;
(b) Only divulging Confidential Information and Trade Secrets to persons employed by the various Giordanos restaurants who have a need-to-know such information; (c) Requiring that employees of Giordano's with such need-to-know sign confidentiality agreements restricting the use and disclosure of Giordano's Confidential Information and Trade Secrets; (d) Entering into franchise agreements that clearly and plainly set forth the confidential nature of Giordanos Confidential Information and Trade Secrets, which require a franchise to return all Confidential Information and Trade Secrets to Giordano's at the end of the franchise relationship, and which impose in-term and post-term restrictive covenants intended to protect Giordanos legitimate business interests in its Confidential Information and Trade Secrets. 28. Giordanos also invests heavily in promoting and advertising its brand name.
Giordano's spends approximately $1.8 million a year on various forms of advertising. Giordano's advertising is funded directly by its restaurants, which are required to contribute 2% of their gross sales to a common advertising fund that contributes to advertising and promotion of Giordanos brand name. Using the funds contributed by its restaurants, Giordano's
promotes its brand through various different types of advertising, including: (a) Giordanos maintains 13 billboards throughout the Chicagoland area, at a cost of approximately $500,000 every six months. These billboards feature and promote the GIORDANOs mark and brand name, and are not focused on any specific restaurant or location. (b) Giordanos places print advertisements in numerous major newspapers and publications, including the Chicago Tribune, the Chicago Sun-Times, and Chicago Magazine, which feature and promote the GIORDANOs mark and brand name. (c) Giordanos also promotes its brand name through digital media, including Facebook, Twitter and its website, giordanos.com. Giordanos digital media strategy focuses on promoting the GIORDANOs Mark and brand name, not any specific restaurant. 29. On August 21, 2013 counsel for Giordanos advised Defendant via written letter
that Giordanos owns the GIORDANOS Mark and the Registered Marks and that Defendants usage of the Infringing Mark was causing confusion in the marketplace which was harming Giordanos. Giordanos requested written assurances from Defendant that Defendant would
cease using the GIORDANOS Mark and the Registered Mark and remove all such used from its advertising materials, menus and signage. A copy of said letter is attached hereto as Exhibit 6. 30. Defendant has not provided any such written assurances as requested by
Giordanos, nor has Defendant, as of the date of this Complaint, ceased its unlawful use of the GIORDANOs Mark and the Registered Mark. 31. On August 28, 2013 counsel for Giordanos provided notice to Defendant and
Defendants registered agent (presumably Defendants legal counsel) that Giordanos would be filing the instant pleading and would be seeking a Temporary Restraining Order in this Court. 32. A copy of this complaint and corresponding motion for temporary restraining
order and memorandum in support of temporary restraining order was served upon Defendant at Defendants 2021 W. Ogden location, as well as upon Defendants registered agent. COUNT I Trademark Infringement Pursuant to 32 of The Lanham Act (15 U.S.C. 1114) 33. Plaintiffs adopt, restate and reallege each and every allegation previously set forth
in this Complaint as if fully set forth in this paragraph 33. 34. Giordanos is the sole and exclusive owner of the GIORDANOS Mark and the
Registered Marks. 35. Through the marketing, operation and licensing activities of Giordanos related to
restaurant services under the GIORDANOs Mark and the Registered Marks, the marks and the services and goodwill associated therewith have become well known to the general public and in the restaurant industry. Giordanos marks distinguish Giordanos, its services and the goodwill associated therewith from that of its competitors.
36.
substantially similar services, is an infringement of Giordanos well established trademark rights under U.S. trademark laws and constitutes federal trademark infringement pursuant to Section 32 of The Lanham Act (15 U.S.C. 1114). 37. Defendants use and continued use of the Infringing Mark is without license from
or permission by Giordanos. 38. By the use and continued use of the Infringing Mark, Defendant has caused and
will continue to cause confusion in the marketplace and mislead the public into believing that Defendants services are associated with, or connected to, Giordanos, thereby depriving Giordanos of the goodwill attached to its services. 39. Defendants use and continued use of the Infringing Mark in the same industry as
Giordanos is wrongful, intentional and in deliberate and knowing disregard of Giordanos exclusive ownership rights. Despite Defendants direct, actual knowledge of the GIORDANOS Mark and the Registered Marks, Defendant continues to use the Infringing Mark. 40. The trademark infringement complained of herein has caused and, unless
restrained and enjoined, will cause irreparable harm, damage and injury to Giordanos, for which Giordanos has no adequate remedy at law. COUNT II Federal Unfair Competition Pursuant to 43(a) of The Lanham Act (15 U.S.C. 1125(a)) 41. Plaintiffs adopt, restate and reallege each and every allegation previously set forth
in this Complaint as if fully set forth in this paragraph 41. 42. The GIORDANOS Mark, as used by Giordanos in connection with its restaurant
43.
those offered by Giordanos or its licensees under the GIORDANOS Mark and the Registered Marks, constitutes infringement of Giordanos rights in the marks and is likely to create confusion, or to cause mistake, or to deceive as to the origin, sponsorship or approval of Defendants services by Giordanos, in violation of 15 U.S.C. 1125. 44. Defendant deliberately and knowingly adopted, used and continues to use the
Infringing Mark in bad faith, with the intent to trade upon the goodwill established by Giordanos, to create confusion in the public mind, and to misappropriate Giordanos rights in the goodwill it has established in the GIORDANOS Mark, all to the irreparable injury of Giordanos. 45. By reason of Defendants unlawful activities, Giordanos has been and is likely to
be damaged, and, unless Defendants activities are restrained, Giordanos will continue to suffer serious and irreparable injury, without a full and an adequate remedy at law. COUNT III Trademark Dilution Pursuant to 43(c) of The Lanham Act (15 U.S.C. 1125(c)) 46. Plaintiffs adopt, restate and reallege each and every allegation previously set forth
in this Complaint as if fully set forth in this paragraph 46. 47. The GIORDANOS Mark is widely recognized by the general consuming public
of the United States as a designation of source of Giordanos and Giordanos Licensees goods and services. 48. The GIORDANOS Mark has become famous, inter alia, due to: (1) Giordanos
use since at least 1974, (2) the significant sales of goods and services under the GIORDANOS Mark; and (3) the extensive advertising and marketing activities under the GIORDANOS Mark.
49.
the distinctiveness of the GIORDANOS Mark. 50. Defendants use of the Infringing Mark is likely to harm Giordanos by harming
the reputation or goodwill symbolized by the GIORDANOs Mark since Defendants use is not controlled or monitored by Giordanos. 51. By reason of Defendants unlawful activities, Giordanos has been and is likely to
be damaged, and, unless Defendants activities are restrained, Giordanos will continue to suffer serious and irreparable injury, without a full and an adequate remedy at law. COUNT IV Illinois Uniform Deceptive and Unfair Trade Practices Act 52. Plaintiffs adopt, restate and reallege each and every allegation previously set forth
in this Complaint as if fully set forth in this paragraph 52. 53. Section 510/2 of the Illinois Uniform Deceptive Trade Practices Act (the
UDTPA) provides, in relevant part that: A person engages in deceptive trade practices when, in the course of his business, location, or occupation, he: (1) passes off goods or services of those of another;
(2) causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval or certification of goods or services; (3) causes likelihood of confusion or of misunderstanding as to the affiliation, connection or association with or certification by another; . . .
(12) engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding. 815 ILCS 510/2.
54.
used in connection with restaurant services offered by Defendant without Plaintiffs consent. Defendants use is an attempt to pass off Defendants goods as those of Plaintiff and causes a likelihood of confusion or of misunderstanding as to the source, sponsorship, approval or certification of Defendants goods or services all in violation of Section 2 of the UDTPA. 55. Defendant has willfully engaged in deceptive trade practices prohibited by
Section 2 of the UDTPA, in that Defendant adopted, used and continues to use GIORDANO with the intent to trade upon the goodwill established by Plaintiff under the GIORDANOS Mark, to create confusion in the public mind and to misappropriate Plaintiffs rights in the goodwill it has established, all to the irreparable injury of Plaintiff. 56. By reason of Defendants unlawful activities, Plaintiff has been and is likely to be
damaged, and, unless Defendants activities are restrained, Plaintiff will continue to suffer serious and irreparable injury, without a full and adequate remedy at law. COUNT V Illinois Consumer Fraud and Deceptive Business Practices Act 57. Plaintiffs adopt, restate and reallege each and every allegation previously set forth
in this Complaint as if fully set forth in this paragraph 57. 58. Section 505/2 of the Illinois Consumer Fraud and Deceptive Business Practices
Act (the CFDBPA) provides: Unfair deceptive acts or practices, including but not limited to. . . the use or employment or any practice described in Section 2 of the Uniform Deceptive Trade Practices Act, approved August 5, 1965, and the conduct of any trade or commerce are hereby declared unlawful whether in fact any person has been misled, deceived or damaged thereby. 815 ILCS 505/2.
59.
trade practices, constitutes a violation of Section 2 of CFDBPA. 60. By reason of Defendants unlawful activities, Plaintiff has been and is likely to be
damaged, and, unless Defendants activities are restrained, Plaintiff will continue to suffer serious and irreparable injury, without a full and adequate remedy at law. COUNT VI Trademark Infringement Pursuant to the Illinois Trademark Registration and Protection Act 61. Giordanos adopts, restates and realleges each and every allegation previously set
forth in this Complaint as if fully set forth in this paragraph 61. 62. Giordanos owns Illinois state trademark registration number 084982 for the mark
GIORDANOS for use in connection with pizzeria services. 63. Giordanos owns Illinois state trademark registration number 084983 for the mark
GIORDANOS for use in connection with the sale of pizza. 64. Section 1036/60 of the Illinois Trademark Registration and Protection Act
(ITRPA) provides: Subject to the provisions of Section 80 of this Act, a person shall be liable in a civil action by the registrant for any and all of the remedies provided in Section 70 of this Act if the person: (a) uses, without the consent of the registrant, any reproduction, counterfeit, copy, or colorable imitation of a mark registered under this Act in connection with the sale, distribution, offering for sale, or advertising of any goods or services on or in connection with which such use is likely to cause confusion or mistake or to deceive as to the source of origin of such goods or services; or (b) reproduces, counterfeits, copies, or colorably imitates any such mark and applies such reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages, wrappers, receptacles, or advertisements intended to be used upon or in connection with the sale or other distribution in this State of such goods or services.
The registrant shall not be entitled to recover profits or damages under this subdivision (b) unless the acts have been committed with knowledge that such imitation is intended to be used to cause confusion, or to cause mistake, or to deceive. 765 ILCS 1036/60. 65. Through the marketing, operation and licensing activities of Giordanos related to
restaurant services under the Illinois Marks and the services and goodwill associated therewith have become well known to the general public and in the restaurant industry. The Illinois Marks distinguish Giordanos, its services and the goodwill associated therewith from that of its competitors. 66. Defendant's use and continued use of the Infringing Mark in providing
substantially similar services, is an infringement of Giordanos well established, trademark rights under Illinois state trademark law (765 ILCS 1036/60). 67. Defendant's use and continued use of the Infringing Mark is without license from
or permission by VPC. 68. By the use and continued use of the Infringing Mark, Defendant has caused and
will continue to cause confusion in the marketplace or mistake or to deceive the public into believing that Defendant's services are associated with, or connected to, Giordanos, thereby depriving Giordanos of the goodwill attached to its services. 69. Defendant's use and continued use of the Infringing Mark in the same industry as
Giordanos is wrongful, intentional and in deliberate and knowing disregard of Giordanos exclusive ownership rights. Despite Defendant's knowledge of the Illinois Marks, Defendant continues to use the Infringing Mark.
70.
restrained and enjoined, will cause irreparable harm, damage and injury to Giordanos, for which Giordanos has no adequate remedy at law. COUNT VII Common Law Unfair Competition 71. Plaintiffs adopt, restate and reallege each and every allegation previously set forth
in this Complaint as if fully set forth in this paragraph 71. 72. Defendants use of the Infringing Mark in connection with services and in
connection with advertisements used to solicit such services that are identical to the services offered by Giordanos under the GIORDANOS Mark, without Giordanos consent, is an attempt to pass off Defendants services as those of Giordanos; causes a likelihood of confusion or of misunderstanding as to the source, sponsorship, approval or certification of Defendants services; causes a likelihood of confusion or of misunderstanding as to affiliation, connection or association between Defendant and Giordanos; and/or creates a likelihood of confusion or misunderstanding among consumers, generally as between the services of Defendant and those of Giordanos, and constitutes unfair competition under the laws of the State of Illinois. 73. Defendant has intentionally and willfully engaged in unfair competition in that
Defendant adopted, used and continues to use the Infringing Mark with the intent to trade upon the goodwill established by Giordanos under the GIORDANOS Mark, to create confusion in the public mind, and to misappropriate Giordanos rights and the goodwill it has established, all to the irreparable injury of Giordanos. 74. The acts of Defendant complained of herein constitute inequitable pirating of the
fruits of Giordanoss labor and are acts of unfair competition in violation of Illinois common
law. Defendants acts of unfair competition were done and continue to be done knowingly, intentionally and willfully. 75. Defendants will continue to engage in unfair competition with Giordanos unless
enjoined by this Court. 76. Giordanos has no adequate remedy at law. PRAYER FOR RELIEF WHEREFORE, Plaintiffs pray that this Court: (a) Temporarily, preliminarily and permanently enjoin, pursuant to 15 U.S.C.
1116, Defendant, its representatives, officers, directors, agents, servants, employees and attorneys and any and all persons in active concert with it from using, in any fashion, the Infringing Mark, Giordanos Mark, the Giordano name or any variations thereof or any trade name, trademark or service mark confusingly or deceptively similar to the Mark in connection with the promotion, advertising, solicitation, operation, conduct and expansion of Defendants business in particular, in connection with Defendants restaurant in the state of Illinois and nationally, or otherwise competing unfairly with Giordanos; (b) Order Defendant its representatives, officers, directors, agents, servants,
employees and attorneys and any and all persons in active concert with them to remove any and all signage for the restaurant located at 2021 W. Ogden Avenue, Downers Grove, Illinois, that contains the name Giordano; (c) Order, pursuant to 15 U.S.C. 1118, Defendant, its representatives,
officers, directors, agents, servants, employees and attorneys and any and all persons in active concert with them to deliver to Giordanos for destruction, all advertisements, brochures, promotional materials, signs, stationery, business cards, other written material or videotapes,
clothing, personal accessories, or any other product or thing which depicts or otherwise disclose the Infringing Mark, or any name or mark confusingly similar thereto; (d) Order Defendant, its representatives, officers, directors, agents, servants,
employees and attorneys and any and all persons in active concert with them to fully compensate Giordanos for the preparation and distribution of any necessary corrective advertising; (e) Order an accounting of all of Defendants profits derived from
infringements, and award to Giordanos exemplary damages, attorneys fees and costs therefor; (f) Order monetary relief in the amount of any and all profits derived by
Defendant from the sale of their services and for all damages sustained by Plaintiff by reason of said acts of infringement and unfair competition complained of herein; (g) Order monetary relief in the amount of treble the amount of actual
damages suffered by Plaintiff; (h) Order monetary relief in the amount of Plaintiffs reasonable attorneys
fees and costs of suit; and (i) Award Giordanos such other and further relief as this Court deems just
and proper under the circumstances. JURY TRIAL DEMAND Plaintiffs hereby demand a trial by jury on all triable issues.
Respectfully submitted, VPC PIZZA OPERATING CORP. and VPC PIZZA IP, LLC
By: /s/ Randall M. Lending One of Their Attorneys Angelo J. Bufalino Randall M. Lending Jeanah Park John E. Munro Vedder Price P.C. 222 N. LaSalle St., Suite 2400 Chicago, Illinois 60601 (312) 609-7500