Lawsuit claims Taco Bell stole Chihuahua idea
Associated Press
DETROIT — A Taco Bell advertising campaign which featured a talking Chihuahua may be dead, but a pair of Michigan men who claim the restaurant chain stole their idea are getting a second chance in court.
The 6th U.S. Circuit Court of Appeals yesterday sent the case back to U.S. District Court in Grand Rapids, which dismissed the case in 1999.
Joseph Shields and Thomas Rinks allege Taco Bell advertising executives stole their idea for a "psycho Chihuahua" after talks with the company concerning the character in 1996 and 1997.
The two men, who own advertising company Wrench LLC in Grand Rapids, claim they had a verbal agreement with Taco Bell to use the character in an advertising campaign.
U.S. District Court Judge Gordon Quist ruled in 1999 that there was not enough evidence to prove an implied contract existed between the plaintiffs and Taco Bell.
The three-judge appeals court panel disagreed, saying: "We find that the district court erred in granting summary judgment to the appellee on the ground that appellants failed to show that their ideas were novel or original."
Douglas A. Dozeman, an attorney for Rinks and Shields, said: "The appeals court has confirmed our belief that we have valid claims against Taco Bell for its misappropriation of the creative ideas and materials of our client."
Dozeman declined to discuss the amount of the compensation his clients are seeking.
"It's a big number," he said. "It's going to be based on use. It's a licensing concept. ... They have used this extensively and have an annual advertising budget of $200 million."
According to yesterday's opinion, Taco Bell representatives do not deny meeting with Shields and Rinks, but claim that the ad campaign began when a different advertising agency, Chiat/Day, presented the idea of a taco-loving Chihuahua.
Messages left yesterday with a Taco Bell spokeswoman were not returned.
Taco Bell owns or franchises thousands of Mexican-style restaurants worldwide from its base in Irvine, Calif. The company is a subsidiary of Tricon Global Restaurants Inc., which also owns Pizza Hut and Kentucky Fried Chicken.
