In-N-Out Sets Sights on Copycats

If you're like many entrepreneurial In-N-Out fans out there, you've thought of opening your own In-N-Out-Style burger joint in one of the many states that doesn't have one yet. Now you may have to think again as In-N-Out begins striking back with its suit against Chadder's. In our earlier review of Chadder's we pointed out the many similarities that are obviously copied from In-N-Out: menu design, architecture, secret menu item choices -- just to name a few.

I'm sure Chadder's is in some legal trouble here (each individual complaint sounds petty, but the culmination of all the imitations is difficult to defend) -- at least they could have made their infringement a little less blatant like Fiamma Burger did in Washington.

All that being said, why bother? Why sue a small business in a location you don't compete in? I suppose it's to stop the bad behavior before it spreads, for that I don't blame them. InO has been close to opening Utah locations in the past, this is further insight into their (slow) expansion plans.

Also, I recommend reading Tim Schreiber's opposing viewpoint on his blog, from there you can even read the court documents! Exciting.

Update: Chadder's has already made some changes in response to the lawsuit. The Cattle Network provides a great rundown of the suit here. Here's a quote:

"Moreover, its court response said that after being sued Chadders underwent some changes, among other things painting railings blue and switching to blue aprons for employees. Chadders also contended that In-N-Out locations around the West had inconsistent exteriors.

The case is continuing, but on June 29 the judge issued a temporary restraining order barring Chadders' use of trademarked names of In-N-Out sandwiches, including the Animal Style, Double-Double and 3x3 burgers. Chadders' employees were instructed to tell customers asking for such items that they aren't available."

Lawsuit Filed

"the nation's retailers are coming under legal assault for printing too much payment-card information on customer receipts."

"As of Dec. 4, retailers are prohibited from printing more than the last five digits of a credit-card or debit-card account number on receipts that are handed to customers. The receipts also can't include the account's expiration date."

"We firmly believe Congress did not intend to allow these class-action lawyers to claim hundreds of millions of dollars in damages when no one has actually suffered any monetary harm," Arnold Wensinger, general counsel for Irvine, Calif.-based In-N-Out Burger, said in a statement.

full story

I don't see any problem with In-N-Out quickly complying with this - Franchise companies like Wendy's will have a little more trouble.