"The Krusty Krab" is the well-known fictional fast food restaurant in Nickelodeon's megahit original animated series "SpongeBob SquarePants", and has so-far appeared in 249 episodes, beginning with the pilot, and will soon to be featured in "The SpongeBob Musical", the upcoming Broadway musical adaptation of the show. In the series, Eugene H. Krabs owns the Krusty Krab, which employs SpongeBob as a fry cook (SpongeBob's official title is "Vice Assistant General Manager in charge of certain things".)
Viacom says it has capitalized on "Krusty Krab" over the year through playsets, cake decorations, aquarium ornaments, magnet sets, costumes, and more, although not as of yet, a restaurant.
But that might only be a matter of time. After Forrest Gump came out, Viacom Consumer Products licensed the Bubba Gump Shrimp Co., which continues to be a good earner. In the court filing, Viacom says that given its "extensive use of the 'Krusty Krab' mark in a wide variety of trade channels - and the fact that the 'Krusty Krab' is a restaurant in the SpongeBob universe - it is within the zone of natural expansion of Viacom business to operate in restaurant services."
But if a restaurant is to come out, Viacom needs to protect its turf.
Viacom's new lawsuit asserts multiple trademark violations and unfair competition against the Texas company, which according to the complaint, has tried to register "Krusty Krab" at the U.S. Trademark Office.
"Defendant's use of the Infringing Mark - which is identical in appearance and sound to the Viacom Trademark - creates a high likelihood of confusion as to the source of the Infringing Mark and Defendant’s corresponding services," states the complaint.
An attorney for the defendant is said to have responded to a demand letter by denying any infringement of rights and stating that it "declines to cease use."
Viacom is now in court much like Sony Pictures did in 2014 when a sports-themed establishment in Fort Worth, Texas opened called "Ricky Bobby Sports Saloon & Restaurant."
The potential for the "Krusty Krab" brand is endless. A "Krusty Krab" restaurant operated by Salta Burgers reportedly opened a couple years ago in the West Bank city of Ramallah.
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