If someone doing business under the name “As American As Doughnuts” makes representations to you, be suspicious, as the origin of doughnuts is in dispute, with some crediting the Dutch.
As is the origin of SPUDNUTS, which are doughnuts made from potato flour.
In any event, defendant allegedly represents to plaintiff that it is the owner of the SPUDNUTS trademark for doughnuts and after plaintiff pays the money ($6000) , the owner of the federal registration for SPUDNUTS shows up.
The facts may be more complex than the complaint makes out (dramatic pause). Someone owned a prior registration for SPUDNUTS for retail bakery services including doughnuts, which was cited against defendant’s pending application for SPUDNUT for prepared potato flour mixes for doughnuts and doughnuts. This occurs around the time the complaint alleges defendant was making its claims of ownership to plaintiff.
However, according to Wikipedia, SPUDNUTS have been around a while and ownership is in dispute. Defendant appears to claim to have purchased ‘something’ from the ‘original’ owners. Plaintiff has now purchased the registration from the prior registrant, so this is an infringement action (for what it’s worth, there’s no breach of contract, fraud, unjust enrichment or other state tort that refers to the original representation of ownership.