An American pizza chain has settled a long-running legal dispute with two Dublin businessmen that had prevented it from embarking on an Irish expansion plan, writes John Mulligan.
Detroit-based Little Caesars Enterprises awarded the master franchise for Ireland in 2005 to Doughmaster, owned by Brian Palmer and Ronan Smith. However, the US parent company had been unable to register the Little Caesars trademark as a restaurant name in Ireland due to a 10-year legal battle with Adel Samy and Hussan El Khouly, who already own restaurants trading under the Little Caesar's brand in Dublin. They opened their first outlet in 1992.
When they were awarded the franchise in 2005, Mr Palmer and Mr Smith said they hoped to open a total of 45 Little Caesars outlets in Ireland within five years. However, legal action was initiated against Doughmaster by Mr Samy's and Mr El Khouly's company in an attempt to prevent Doughmaster from opening restaurants under the Little Caesars name.
While the US company held the Little Caesars name as a trademark for food products sold in Ireland since 1992, neither it nor the Dublin businessmen had succeeded in registering the trademark for use on restaurants.
In a previous determination, the Patents Office said that "on the balance of probability" Mr Samy and Mr El Khouly had known of the Little Caesars name in the US when they opened their own Dublin premises and declined their application to register the name in Ireland.
Mr Samy and Mr El Khouly had denied they knew of the Little Caesars name in the US. The dispute with Little Caesars Enterprises ultimately went to the High Court.
However, it is understood that the parties involved have now reached an agreement that will enable Mr Palmer and Mr Smith to begin rolling out their franchise. Details of the settlement are confidential, but it is believed that they will be unable to open seated restaurants and will have to operate take-away outlets only.
Mr Samy and Mr El Khouly will be able to retain the Little Caesar's name on their restaurants.
