Were the Defendants in the Craters & Freighters litigation allowed to use the infringing mark in conjunction with any web-based advertisement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2010, we initiated litigation against Daisychain Enterprises (dba Freight & Crate), Cathy Benz and Fred Benz ("Defendants") for trademark infringement. The Defendants were using the name "Freight & Crate" in the operation of a business in California similar to a Craters & Freighters Franchised Business. On May 5, 2010, the United States District Court for the Northern District of California issued a permanent injunction against the Defendants. The court permanently restrained and enjoined them from (a) using the infringing mark "Freight & Crate" in conjunction with any shipping or packaging services; (b) using the infringing mark "Freight & Crate" in conjunction with any web-based advertisement or print advertisement; (c) using the infringing mark "Freight & Crate" at any call center to suggest that Freight & Crate is affiliated with Craters & Freighters; (d) identifying themselves anywhere or any time, by their initiative or in response to questions by others, as "Craters & Freighters" or as affiliated with Craters & Freighters; (e) using Craters & Freighters' copyrighted materials in advertisements and promotions; and (f) using the registered trademark "Craters & Freighters" for any purpose whatsoever.
In early 2014, it came to our attention that the Defendants were violating the permanent injunction and using our name to advertise products online. In February 2014, we sent the Defendants a letter to demand that they cease from using the words "Crate & Freight" and that they comply with the permanent injunction. In March 2014, we sought for the Defendants to be held in civil and criminal contempt for violating the permanent injunction. The Defendants were ordered to appear in court in May 2015 to show cause why they should not be held in contempt for failure to comply with the permanent injunction. In August 2015, the Defendants, proceeding pro se, filed an appeal relating the multiple judgments we have obtained against them thus far, which currently total more than $100,000 and are collecting interest at the maximum amount allowed under California law. We submitted our Answering Brief in September 2015, and the United States Court of Appeals for the Ninth Circuit in D.C. No. 14-17497 rendered a decision that the lower District Court's Orders Stand – i.e., we (Craters & Freighters Franchise Company) are the prevailing party.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the United States District Court for the Northern District of California issued a permanent injunction against the Defendants in a 2010 trademark infringement lawsuit. The injunction specifically restrained and enjoined the Defendants from using the infringing mark "Freight & Crate" in conjunction with any web-based advertisement, as well as shipping or packaging services, or print advertisements. They were also prohibited from using the mark at any call center to suggest affiliation with Craters & Freighters, identifying themselves as Craters & Freighters or affiliated with them, using Craters & Freighters' copyrighted materials, and using the registered trademark "Craters & Freighters" for any purpose whatsoever.
In early 2014, Craters & Freighters discovered that the Defendants were violating the permanent injunction by using their name to advertise products online. Craters & Freighters sent a letter demanding they cease using the words "Crate & Freight" and comply with the injunction. Subsequently, Craters & Freighters sought to hold the Defendants in civil and criminal contempt for violating the permanent injunction. The Defendants were ordered to appear in court in May 2015.
In August 2015, the Defendants filed an appeal, which was ultimately decided in favor of Craters & Freighters. The court's orders stand, meaning Craters & Freighters prevailed in the litigation. The judgments against the Defendants totaled more than $100,000 and are collecting interest at the maximum amount allowed under California law. This demonstrates Craters & Freighters's commitment to protecting its trademarks and taking legal action against infringement.