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Krispy Kreme sues rival over 'glazed' phrase

Krispy Kreme Doughnuts Inc., the second-biggest US doughnut chain, says it's the only company that can call its products ''Original Glazed" and is suing a rival baker, George Weston Ltd. unit Entenmann's, over the name.

Krispy Kreme said it owns a trademark issued in 1999 on the phrase ''Original Glazed" and that ''the designation originated with and is unique to Krispy Kreme."

The lawsuit, filed July 1 in Durham, N.C., claims Entenmann's is using the phrase and the Krispy Kreme design of ''a series of colored dots" on white boxes of doughnuts and at convenience store displays.

Krispy Kreme's suit said Entenmann's is trying to confuse consumers ''to give its goods an appeal to consumers and a level of salability that they would not have possessed absent an association with Krispy Kreme."

Officials with 106-year-old Entenmann's, based in New York's Bay Shore, Long Island, didn't immediately return phone calls seeking comment. George Weston, based in Toronto, bought Entenmann's from London-based Unilever in 2001.

Winston-Salem, N.C.-based Krispy Kreme, founded in 1937, had its first loss as a public company during the first quarter of this year as sales fell amid the popularity of low-carbohydrate diets.

Surging demand for Krispy Kreme's doughnuts had helped shares more than triple since the company went public in April 2000.

Krispy Kreme shares fell 33 cents to close at $17.82 in New York Stock Exchange composite trading.

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