Fast-food chain Jack in the Box sues crypto exchange FTX for copying its mascot

Jack in the Box has sued cryptocurrency exchange FTX over its Moon Man mascot, which it alleges was “brazenly and illegally" copied and derived from its 70-year old mascot, Jack.

The restaurant chain accuses FTX of copyright infringement, trademark dilution, trademark infringement, false designation of origin, and unfair competition.

FTX recently launched a series of advertisement spots has already made several personal appearances at such sporting events as the World Series, featuring Moon Man.

According to the lawsuit filed in the US district court of Southern District of California, FTX’s far inferior Moon Man is blurring consumers’ association between the restaurant chain and Jack.

Consequently, it is allegedly tarnishing Jack’s reputation to consumers.

According to Jack in the Box, Moon Man could be mistaken for Jack, its 70-year old mascot, since it also has a" spherical white head affixed to a talking human actor, with blue-dotted eyes, a nose, and a smile."

Jack in the Box added that not only are the two characters strikingly similar in appearance, they also have the same behavior.

An example given by the fast-food chain was that the Moon Man, like Jack, also changes his facial expressions and clothing attire throughout appearances and advertisements.

The lawsuit added that Jack in the Box sent FTX a cease-and-desist letter on Oct. 15. FTX did not comply and responded on Oct. 29 that it will continue to use Moon Man in its advertising.

Due to FTX’s refusal to stop using Moon Man, the lawsuit said it has caused Jack in the Box “considerable economic damage and irreparable harm," such as devaluing the Jack in the Box-associated goodwill.

The restaurant chain also argued that FTX’s response to the cease and desist letter is also rife with legal and factual inaccuracies, such as claiming that Jack in the Box's protection is limited to "the behatted ping pong‐headed clown who exploded out of a box to sell burgers."

Jack in the Box operates and franchises more than 2,200 restaurants in 21 US states and Guam.