Pirate Joe's was a specialty grocery store in Vancouver, British Columbia, Canada, owned by Michael Hallatt. Its inventory consisted entirely of store brand products resold from locations of the U.S.-based grocery chain Trader Joe's, which does not operate any locations in Canada. Despite the high costs of operating the store because of its business model, the store became popular with residents who enjoyed the opportunity to purchase some of the distinct private label products offered by Trader Joe's.
Although considered a legal grey market business,[1] Hallatt's operation drew the ire of the Trader Joe's company. The shop eventually became the subject of a lawsuit filed by Trader Joe's in May 2013, which claimed that the Pirate Joe's shop was infringing on its trademarks and damaging its reputation. Hallatt chose to fight for his business model in court while continuing to operate the store. In 2013, a judge dismissed the suit, ruling that Hallatt could not be convicted under US trademark law because the alleged infringements did not occur within the country. Trader Joe's was not able to prove the business was causing them any harm,[2] and it was determined that they were in fact benefiting since all products were purchased from their stores at full retail price. However, the suit was reopened on appeal, and Hallatt finally decided to close the store in 2017 due to mounting legal costs.