Jan. 9 (Bloomberg) -- Trader Joe’s Co., the operator of specialty grocery stores, sued Gristede’s Foods Inc., alleging the supermarket chain committed trademark infringement by opening a food market in New York called Trader John’s.

Gristede’s is opening the Trader John’s “knock-off food market” three blocks from a Trader Joe’s store in Manhattan, according to a complaint filed Jan. 8 in federal court in New York. The Trader John’s name misleads consumers and diminishes the Trader Joe’s brand, according to the complaint.

“We take seriously any attempt to infringe on our trademark and we are taking the necessary action to stop this particular attempt,” Trader Joe’s spokeswoman Alison Mochizuki said in an e-mailed message.

The lawsuit has no merit, said John Catsimatidis, Gristede’s chief executive officer.

“My name is John and I am a trader so I don’t know what their problem is,” he said in a telephone interview. Gristede’s lawyers haven’t seen the complaint yet, Catsimatidis said. “We’ll see what happens.”

The Trader John’s store at 5 West 14th St. in Manhattan will open Jan. 15, Catsimatidis said.

The Trader Joe’s store is three blocks away at 142 East 14th St. The company has 300 locations in 25 states and Washington. Gristede’s has about 35 shops in the New York area, Catsimatidis said.

Trader Joe’s sent a “cease and desist” letter Jan. 6 to Gristede’s, asking it to “immediately change the name and decor of the infringing store,” according to the company’s complaint.

‘Blatant Attempt’

“Gristede’s was well aware that any effort to create a knock-off food market based on the Trader Joe’s store would be a violation of Trader Joe’s rights,” Trader Joe’s said in the complaint. Naming the store Trader John’s was a “blatant attempt to confuse consumers and capitalize on Trader Joe’s hard-earned goodwill.”

The Trader John’s sign and awning on the West 14th St. site are similar to those used by Trader Joe’s and the inside decor “mimics the familiar decoration scheme of one of Trader Joe’s stores,” the company said. The lawsuit alleges trademark and trade dress infringement, false advertising, deceptive trade practices and unfair competition.

New Yorkers writing in blogs already have commented on the similarity between the two stores, Trader Joe’s said in its complaint, citing several postings.

“Trader John’s? Is a Union Square store trying to cash in on Trader Joe’s?” one blog asked. “I’m not sure what ‘Trader John’s’ is all about, but I’m thinking it might be similar to Trader Joe’s,” read another.

Trader Joe’s, based in South Pasadena, California, and New York-based Gristede’s are closely held.

The case is Trader Joe’s Co. v. Gristede’s Foods Inc., 09- CIV-00163, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Margaret Cronin Fisk in Southfield, Michigan, at mcfisk@bloomberg.net

Last Updated: January 9, 2009 17:21 EST