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Zip Int'l Grp. LLC v. Zenith Foods LLC

Inferior Quality of Defendant's Similar Products Diminishes Value of Plaintiff's Marks

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OPINION & ORDER In July 2020, plaintiff, Zip International Group LLC (“Zip”), commenced the present action against defendants, Zenith Foods LLC (“Zenith”), Vadim Shvarts, and Boris Feldman. Plaintiff alleges that defendants have imported and distributed products in the United States in violation of the Lanham Act and New York state law. Defendants have moved to dismiss the complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. For the reasons set forth below, I deny defendants’ motion. BACKGROUND¹ Plaintiff is the importer and exclusive authorized distributor of various European specialty foods in the United States. First Am. Compl.

2, 17, ECF No. 33. Among the foods that plaintiff has an exclusive right to sell in this country are Babkini Semechki sunflower seeds, Vkus Goda soft drinks, Dworek canned foods, and Bebi baby food.² Id. 18. Plaintiff also has trademark registrations for ZIP PREMIUM QUALITY IMPORTED FOOD for wholesale distributorships; VKUS VG GODA for flavored carbonated water; DWOREK for marinated vegetables and fruit; and ZIP INTERNATIONAL GROUP LLC for wholesale distributorships. Id. 19. According to plaintiff, it has “spent considerable efforts and made enormous investments of time and money in promoting the Products in the United States.” Id. 29. These investments include a number of quality control measures put in place for the benefit of U.S. consumers and in an effort to comply with U.S. law. Id.

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