For Release:
Attention:
Contact:
Immediately
Produce Industry Editors
David Burrell, National Onion Labs, Inc.
(912) 693-9060
davidb@onionlabs.com

Legal - John R. Harris or Larry H. Kunin
Morris, Manning & Martin LLP
(404) 233-7000
jharris@mmmlaw.com or lkunin@mmmlaw.com
     
     
Consumers Win in Threatened Legal Challenge to Onion Flavor
Certification Program
     
Collins, GA March 15, 2006 - Consumers won a second legal challenge in as many years to the National Onion Labs (“NOL”) Flavor Certification Program. In a stipulated Consent Decree, no restriction was placed on NOL’s use of its certification marks CERTIFIED SWEET™ and CERTIFIED EXTRA SWEET™, including when used by licensed Vidalia® growers.

The recent court skirmish followed a letter sent on behalf of a group of Vidalia® onion growers to Tommy Irvin, the longstanding Georgia Commissioner of Agriculture, who is the record owner of the Vidalia® certification mark. The letter sought to interfere with NOL’s First Amendment rights to independently test, analyze, and certify the flavor characteristics of onions, and the onion growers’ First Amendment rights to publicize such certification. Specifically, the letter demanded that the Commissioner order onion growers to stop adding NOL’s certification marks to Vidalia® onions.

Although the letter did not request any action against NOL, the State of Georgia filed a Complaint against NOL in the United States District Court for the Northern District of Georgia citing two narrow trademark issues.

The first issue alleged that NOL’s use of the web domain www.vidalialabs.com infringed the Vidalia® registered certification mark. This domain name was left over from NOL’s former legal name, Vidalia Labs International, Inc. During 2005, due to the changing national and international scope of its business base, the company changed its legal name to National Onion Labs, Inc. NOL’s new web domain, www.onionlabs.com, has been active since that time. Although NOL denies that its former web domain infringes the Vidalia® certification mark, NOL has agreed to cease use of this web domain in conjunction with the sale of its services.

The second issue raised was a PLU (onion) sticker design that contained one or the other of NOL’s certification marks CERTIFIED SWEET™ or CERTIFIED EXTRA SWEET™ together with the Vidalia® certification mark. The Complaint alleged that NOL provided, sold and affixed the labels in violation of the Vidalia® certification mark since NOL was not a licensee of the Vidalia® mark. In reality, NOL does not provide, sell or affix the product stickers.

Instead, Vidalia onion growers who are properly licensed to use both the National Onion Labs flavor certification marks and the Vidalia onion certification mark acquire and affix the product stickers. Although NOL does not provide a label containing both the NOL certification mark and the VIDALIA® mark, it has agreed to insert language into its license agreement for the CERTIFIED SWEET™ and CERTIFIED EXTRA SWEET™ certification marks that Vidalia® licensees must abide by the rules and regulations of the Georgia Department of Agriculture.

Attorneys for NOL commented, “NOL’s certification service is no different than any other independent third party certifying the quality characteristics of a product sold to consumers, and the seller publicizing such certification. For example, it is similar to a Maytag® Dishwasher carrying the Energy Star® label, the Good Housekeeping ‘Seal of Approval,’ and a Consumer Reports ‘Top Picks 2006 Status.’ In this circumstance, NOL is merely certifying for the consumer that an onion marketed as “sweet” is indeed sweet according to NOL’s published certification standards, thus raising consumer confidence in the flavor characteristics of the onion.”

All parties have agreed to the Consent Decree and Final Order of Dismissal, although the Consent Decree remains pending for approval by the District Court.

National Onion Labs is very pleased that it can continue to offer Vidalia onion growers the ability to use the CERTIFIED SWEET™ and CERTIFIED EXTRA SWEET™ flavor certification tools for fields that qualify.

Burrell commented, “These are simply very reliable, science based, consumer focused, quality assurance tools that allow leading growers, produce distributors, and grocers to distinguish their product offerings from the tsunami of domestic and imported ‘sweet’ onions that have flooded the market in recent years. Certain aspects of NOL’s testing process relating to pungency analysis were developed by the University of Georgia; and are contained within the Rules of the Department of Agriculture.”

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For further information regarding the Flavor Certification services of National Onion Labs please contact David Burrell at National Onion Labs, Inc. (912) 693-9060. Please refer all legal questions to NOL’s counsel, John R. Harris or Larry H. Kunin at Morris Manning and Martin LLP, (404) 233-7000.


Vidalia® is a registered certification mark of the Georgia Department of Agriculture. CERTIFIED SWEET™ and CERTIFIED EXTRA SWEET™ are certification marks of National Onion Labs, Inc.

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