Virginians and others in the DMV area can sleep soundly knowing that their favorite late night cookie providers will peacefully coexist.
Insomnia Cookies LLC (“Insomnia”) and Virginia bakery Red-Eye Cookie Co. (“Red-Eye”) have agreed to settle their trademark dispute over a crescent moon-shaped logo. The cookie companies, which both serve customers late into the night, originally filed their trademark dispute in January 2017. Insomnia alleged that Red-Eye had infringed its crescent moon design logo, which was registered in 2008. Although the application for the mark was still pending, Insomnia claimed that it had been using the logo in interstate commerce since 2006.
In the original complaint, Insomnia stated, “The name INSOMNIA COOKIES gives the commercial impression that Insomnia provides cookies to consumers who are up late at night or who are unable to sleep at night. The name RED-EYE COOKIE CO. similarly gives the commercial impression that Red Eye provides cookies to consumers who are up late at night or who are unable to sleep at night.”
In addition to allegations of trademark infringement, Insomnia also alleged that Red-Eye had copied its business plan by opening its bakeries near Insomnia stores, using a similar “look and presentation,” and focusing on serving college campuses.
Now, nearly a year later, the parties have asked U.S. District Judge Glen E. Conrad for a two-month stay to finalize a settlement agreement, stating that “certain matters” need to be completed before they can finalize their agreement. Despite Red Eye’s earlier statement that the suit was “nothing more than an attempt by a large cookie chain to stifle competition in the late-night cookie marketplace,” it appears that the two companies have are settling their differences (and similarities).