Cedar Bay sued Canadian Fish Exporters, or “CFE,” for false association and false designation of origin in connection with the importation of salmon products. Cedar Bay is a Nova Scotia business that holds registrations on “CEDAR BAY” and on design marks that include “CEDAR BAY GRILLING COMPANY.”
Cedar Bay and Massachusetts business CFE had previously entered into an agreement by which CFE distributed Cedar Bay’s products in the United States and the Caribbean. Cedar Bay alleges that CFE demanded lower prices from Cedar Bay to permit sales to large retail customers such as Kroger and Walmart, but did not pass the cost savings on to these customers, and that CFE misled Cedar Bay about the mark-ups CFE was charging on Cedar Bay products. Cedar Bay further alleges that the failure to pass on the cost savings resulted in the loss of accounts, and that CFE failed to properly seek to expand the business. Cedar Bay hired a broker to assist in expanding the business, but alleges that CFE has blocked the broker from contacting existing customers and has asserted that Cedar Bay has no right to contact retail customers in the United States, which Cedar Bay denies. Cedar Bay asserts that CFE uses Cedar bay’s trademarks in a manner that falsely suggests that the products and trademarks are owned by CFE. In addition to false designation of origin, Cedar Bay alleges tortious interference with economic advantage and violation of 93A. Apparently, the contract with CFE remains in place, however, as there is no allegation that it terminated or was breached.