Xiao Wei Yang Catering Linkage In Inner Mongolia Co., Ltd. et al. v. Inner Mongolia Xiao Wei Yang USA, Inc. et al. (15-cv-10114).

Judge Casper granted summary judgment in favor of the Defendants on the trademark infringement, false designation of origin, trademark dilution, unfair competition, and unfair and deceptive trade practices. The case arose over a dispute between a Chinese restaurant chain and a US company seeking to become a franchisee. The two entered an agreement whereby the US entity opened a restaurant using the Chinese companies’ “Little Lamb” trademark. Plaintiffs allege that the Defendants violated this agreement by not opening another restaurant within one year of opening the Boston restaurant, making their use of the mark infringing as unsanctioned. The Court disagreed, and further determined that the attempted rescission of the agreement by the Plaintiffs was not proper under the terms of the agreement. As the agreement authorized the use of the mark, infringement could not be found. In a footnote, Judge Casper also noted that the Plaintiffs had failed to produce any evidence of damages, and that no presumption of damages could be had under the Lanham Act, which would also support a denial of the motion for summary judgment. As the remainder of the claims for which summary judgment was sought relied on a finding of infringement, these claims were also denied. Summary judgment in the Defendants’ favor had already been granted on breach of contract, breach of implied covenant of good faith and fair dealing, fraudulent inducement and unjust enrichment claims, meaning that all of Plaintiffs’ claims have been denied.

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