Momofuku backs down from defending its 'chile crunch' trademark after outcry by small businesses

livemint.com:

David Chang, said it won't defend its trademark on the name “chile crunch" after it sparked an outcry by sending cease-and-desist letters to other businesses using the term. Momofuku started selling its Chili Crunch product in 2020, a crunchy spicy oil with dried peppers and other ingredients like sesame seeds and garlic. It's a riff on Chinese condiment chili crisp and other similar products from other countries.

Different variations of chili crisp and other hot sauces have gained popularity in the U.S. in recent years. Momofuku acquired the trademark for the name “chile crunch" from Chile Colonial in 2023.

While Momofuku holds the trademark for “chile crunch," spelled with an “e," it also claims “common law" rights to “chili crunch" with an “i" and has filed for similar trademark status with the U.S. Patent Office for that spelling, which is still pending. In March, Momofuku sent seven cease-and-desist letters to companies that were calling their product “Chili Crunch" or “Chile Crunch." Most of the companies that received the letter were small brands founded by Asian Americans.

As first reported by The Guardian on April 4, several of the companies took to social media to complain the letters were unfair, particularly since most of the brands are small and David Chang and Momofuku are so well known in the Asian American and Pacific Islander community. Their complaints went viral, sparking a debate over whether Momofuku — or anyone — should be able to own the trademark of the generic sounding chile or chili crunch. At first, Momofuku stood by its actions.