The owner of the Red Hen restaurant in Lexington, VA asked White House Press Secretary Sarah Huckabee Sanders asked her to leave her restaurant a couple of nights ago, and then proceeded to arrange a protest of Mrs. Huckabee Sanders family as they dined across the street at another restaurant not affiliated with her restaurant. The events of that night received and continues to receive a lot of attention in the press.
However, the issue with the Red Hen has not been confined to Lexington, VA. Unfortunately, the Washington Post reported that other Red Hen restaurants that are not affiliated with the restaurant in Lexington, VA are feeling the backlash. The owner of the Red Hen restaurant in Washington, D.C. trying to be proactive to avoid a mistaken connection with the Lexington, VA restaurant took to Twitter to explain the difference. Instead of receiving a sympathetic ear, the Twitter mob turned its attention to the post flooding the Washington, D.C. Red Hen with 4,400 tweets – some supportive but some disparaging.
Red Hen restaurants in Swedesboro, N.J., and Old Saybrook, Conn. received similar treatment to the Red Hen in Washington, D.C. However, in addition to the Tweets, these restaurants suffered lower Yelp scores at the hand of the Internet mob.
If you didn’t believe it before, you should now, that a trademark embodies the goodwill or reputation of a business. This case also highlights the importance of selecting trademarks that are sufficiently different from other parties’ marks and protecting the mark you choose from other parties that may choose a confusingly similar mark. And while this situation may be unique, it demonstrates how quickly a reputation can be damages.
In a matter of hours, the Yelp ratings for the Red Hen restaurants were negatively impacted all over a misunderstanding. Yelp has become a trusted source for many people looking to have dinner out. With ratings now in the threes instead of the fives, who knows how much business these Red Hen restaurants will lose over this situation.
Make sure to search your trademark before adopting it. While not on such a public stage, trademark disputes involving similar marks happen all the time and are avoidable if the proper search is conducted.