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October 20, 2006

The Philly Cheesesteak Family Feud: Pat’s King of Steaks v. Rick’s Steaks

WARNING: This article may contain information about mouth watering Philly cheesesteaks - Do not attempt to read this article if you are hungry or on a diet.

Birth of the cheesesteak: In the early 1930s Pat and Harry Olivieri invented the cheesesteak while operating a hot dog stand in South Philly. The story is that Pat asked his younger brother Harry to go to the Italian market and buy a hunk of steak. The brothers cut up the steak, grilled it on their hot dog grill with some onions, and put it on a bun. The sold their first “steak sandwiches” for a dime. Cheese whiz was later added to the sandwiches in the 1950s. Later on, provolone and American cheeses were added to the menu of condiments. Along with the birth of the cheesesteak came the birth of Pat’s King of Steaks.

In the 1970s there was a family feud and afterwards Pat left for California. The Olivieri family fought over the restaurant and the trademark rights to Pat’s King of Steaks. Pat died in 1974, not so surprisingly from heart failure. After Pat’s death, Frankie (Harry’s son) eventually bought the Pat’s King of Steaks business from his family. Rick (Pat’s grandson) later started Rick’s Steaks less than 2 miles from the original and current location of Pat’s.

The lawsuit: The event that gave rise to this lawsuit occurred in May 2006 when Rick Olivieri, President of Rick’s Steaks, was interviewed by Al Roker on The Today Show. During the interview, Rick allegedly made reference to Pat’s Steaks. Pat’s King of Steaks argues that these references were made in an effort to profit from the goodwill of the trademark Pat’s King of Steaks.

Additionally, Pat’s King of Steaks alleges that Rick’s uses the marks “Pat’s Steaks”, “Pat’s King of Steaks”, as well as a crown logo similar to the crown used in Pat’s trademark in signage and print advertisements on a story-board, hats, and shirts at its restaurant. Pat’s King of Steaks is asking the court to enjoin Rick’s Steaks from using the mark Pat’s King of Steaks and any other mark confusingly similar to Pat’s King of Steaks.

One may think that Rick may raise the defense of nominative fair use, but will it succeed? Take a look at Rick’s website describing the story behind the steak sandwich. Does Rick’s suggest sponsorship or endorsement by the trademark holder, i.e. Pat’s Steaks? What are your thoughts? What other issues may arise?

Posted by Emily E. Campbell at 02:33 PM.
Permalink: The Philly Cheesesteak Family Feud: Pat’s King of Steaks v. Rick’s Steaks
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