Taco Bell bitten by talking chihuahua
By Amy Yee and Ellen Kelleher in New York
Published: June 5 2003 0:01 | Last Updated: June 5 2003 0:01
A US district jury on Wednesday ordered the owners of the Taco Bell fast food chain to pay $30.1m to two men who say they created the idea of a talking chihuahua used in a popular advertising campaign.
Yum! Brands, the Kentucky-based company that owns Taco Bell, Kentucky Fried Chicken and Pizza Hut, said it would appeal against the verdict.
Joseph Shields and Thomas Rinks, two Michigan marketing executives, filed a lawsuit in 1998, saying they had proposed the idea of a "Pyscho chihuahua - a cool, confident dog with an attitude" - to Taco Bell in 1996. The plaintiffs said the restaurant chain broke off discussions and launched the chihuahua advertising campaign.
The three-year advertising campaign featured a tiny dog that uttered in Spanish, "Yo quiero Taco Bell", or "I want Taco Bell." The ads created an unlikely cult following and spawned websites, online chatrooms, clothing and accessories devoted to the Taco Bell dog.
Mr Rinks said in a statement that "after Taco Bell approached us and asked for our ideas, they just went ahead and used the character that we had created without paying for it. Now that we've been vindicated, we plan to aggressively pursue licensing opportunities with our Chihuahua character."
Douglas Dozeman, the lawyer for the plaintiffs said: "This day has been a long time in coming, and we are extremely pleased with the jury's verdict. This lawsuit has been a classic case of David vs. Goliath, and demonstrates that even large, multinational corportations must play by the rules."
Taco Bell maintains that Chiat Day, the advertising agency that launched the campaign, came up with the chihuahua concept.
"Taco Bell continues to strongly believe that the chihuahua character was created by the Chiat Day Advertising Agncey, not the plaintiffs," said Laurie Gannon, a Taco Bell representative.
The fast food giant will take a special charge of 6 cents per share, excluding interest, in the second quarter to cover litigation costs.
Shares in Yum Brands closed up 1.5 per cent at $28.06 at the end of trade on Wednesday.
p.s. Let me guess.... This one runs with the pack too, huh Scott?
By Amy Yee and Ellen Kelleher in New York
Published: June 5 2003 0:01 | Last Updated: June 5 2003 0:01
A US district jury on Wednesday ordered the owners of the Taco Bell fast food chain to pay $30.1m to two men who say they created the idea of a talking chihuahua used in a popular advertising campaign.
Yum! Brands, the Kentucky-based company that owns Taco Bell, Kentucky Fried Chicken and Pizza Hut, said it would appeal against the verdict.
Joseph Shields and Thomas Rinks, two Michigan marketing executives, filed a lawsuit in 1998, saying they had proposed the idea of a "Pyscho chihuahua - a cool, confident dog with an attitude" - to Taco Bell in 1996. The plaintiffs said the restaurant chain broke off discussions and launched the chihuahua advertising campaign.
The three-year advertising campaign featured a tiny dog that uttered in Spanish, "Yo quiero Taco Bell", or "I want Taco Bell." The ads created an unlikely cult following and spawned websites, online chatrooms, clothing and accessories devoted to the Taco Bell dog.
Mr Rinks said in a statement that "after Taco Bell approached us and asked for our ideas, they just went ahead and used the character that we had created without paying for it. Now that we've been vindicated, we plan to aggressively pursue licensing opportunities with our Chihuahua character."
Douglas Dozeman, the lawyer for the plaintiffs said: "This day has been a long time in coming, and we are extremely pleased with the jury's verdict. This lawsuit has been a classic case of David vs. Goliath, and demonstrates that even large, multinational corportations must play by the rules."
Taco Bell maintains that Chiat Day, the advertising agency that launched the campaign, came up with the chihuahua concept.
"Taco Bell continues to strongly believe that the chihuahua character was created by the Chiat Day Advertising Agncey, not the plaintiffs," said Laurie Gannon, a Taco Bell representative.
The fast food giant will take a special charge of 6 cents per share, excluding interest, in the second quarter to cover litigation costs.
Shares in Yum Brands closed up 1.5 per cent at $28.06 at the end of trade on Wednesday.
p.s. Let me guess.... This one runs with the pack too, huh Scott?
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