OTHER NEWS - April 2, 1996

Kendall-Jackson Winery Sues Gallo Over Trademark: The Santa Rosa, Calif.-based winery claims E&J; Gallo Winery violated trademark rules and engaged in “unlawful, unfair and fraudulent” business practices in the marketing of its Turning Leaf wines. The suit, filed in U.S. District Court in San Francisco, said Gallo studied Kendall-Jackson’s products and customers, some of whom said they recognized Kendall-Jackson products by their “colored leaf” trademark. The suit alleges Gallo intentionally designed its bottle and labeling to imitate Kendall-Jackson’s mark. Gallo’s name does not appear on bottles of Turning Leaf. Moreover, the suit contends, Gallo used its extensive control over wine distributors and retailers to gain prominent display space, often near Kendall-Jackson’s wines. Gallo representatives could not be reached for comment.