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Battle of bottled water spilling into courtroom: Island Chill denies packaging infringes on Fiji...

By Hyland, Alexa
Publication: Los Angeles Business Journal
Date: Monday, June 2 2008

Stewart and Lynda Resnick's Fiji Water Co. is the Mercedes-Benz of bottled water, and the Los Angeles billionaire couple wants to keep it that way.

Through a successful marketing campaign, the blue-capped square bottles have made appearances on popular

television shows "Desperate Housewives," "Entourage" and "Sex and the City."

Indeed, despite its premium price, Fiji Water is the highest-selling imported bottled water behind Evian.

And as the U.S. bottled water market continues to steadily grow--with Americans consuming 9 billion gallons of it in 2007--others are trying to capitalize on the appeal of water from the small South Pacific island getaway.

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In March 2007, Fiji-based Dayals (Fiji) Artesian Waters Ltd. entered the U.S. market with its own brand of Fiji water, Island Chill Natural Artesian Water.

But with its square bottle, blue cap and a 3-D label that features an exotic red flower, Island Chill's label--if it doesn't resemble--at least evokes an association with Fiji Water's label.

That similarity prompted an unsuccessful lawsuit from the Resnicks in Australia that claimed Dayals was unfairly trying to trade on Fiji's well-established brand.

Now, just months after Island Chill entered the U.S. market, the two sides are set to go to court again in Los Angeles--this time after Dayal made the first legal move in anticipation of a threatened lawsuit from the Resnicks.

Island Chill owner Jay Prakash Dayal is asking a judge to determine that Island Chill is not infringing on Fiji Water's trademark by advertising their water as being from Fiji, nor is the company engaging in unfair business competition.

Representatives for Fiji Water declined to comment on the pending litigation, but the Resnicks did file a countersuit claiming Dayal is violating Fiji Water's trademarks and engaging in unfair business practices because of the similarities in labeling and bottle.

A trial is scheduled to begin June 24 in federal court, where Dayal will argue the Resnicks are merely engaging in monopolistic behavior, trying to stop the competition from selling its product in the $12 billion U.S. bottled water market.

"We will consider it a victory if we get a jury and judge to say the company can't stop anyone else from selling water that says it's from Fiji," said Marc E. Hankin, Island Chill's lawyer.

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