Two Pesos, Inc. v. Taco Cabana, Inc.
Taco Cabana ran a chain of Mexican restaurant chain in Texas with a "festive eating atmosphere." Two Pesos opened its own chain with a very similar motif, also in Texas. Taco Cabana sued for trade dress infringement.
Trial court found that Taco Cabana's trade dress was inherently distinctive and that Two Pesos intentionally infringed Taco Cabana's trade dress.
Court of appeals affirmed.
Does trade dress have to have a secondary meaning to be enforceable?
It is assumed that the trial court's finding of distinctiveness was valid. If a trademark or trade dress is inherently distinctive, there is never a need for a secondary meaning to provide acquired distinctiveness as well.
Inherently distinctive trade dress does not require a secondary meaning to be enforceable.
Trade dress can be inherently distinctive.
Two Pesos's owners sold its chain to Taco Cabana rather than make the changes required.