Ferrara Candy Company, the maker of Nerds, recently filed a lawsuit against the maker of Dweebs candy. What looks like a quirky fight between two playful names is actually a cautionary tale for startups and small businesses building their brands.
Ferrara has spent decades growing Nerds into a cultural touchstone. In 2024 alone, sales topped $870 million in the United States. To protect that investment, Ferrara holds trademarks on the Nerds name, the irregular pebble shape of the candy, and the famous dual-color box. It has also filed new trade dress applications to cover additional packaging features, many of which are still pending review at the USPTO.
Dweebs registered its name federally in 2024 and first gained popularity internationally. The similar names alone might not have been a problem, but Ferrara claims the issues go much deeper. According to the lawsuit, Dweebs packaging reportedly mimics Nerds’ distinctive split-color boxes, cartoon characters, and overall look so closely that some retailers have actually bundled Nerds and Dweebs together in gift sets. Ferrara argues this creates serious confusion among consumers, which is particularly concerning since both products target children.
For business clients thinking about branding, there are a few major takeaways:
- Cast a wide net when protecting your brand. Don’t just trademark your company name. Consider protecting your logo, taglines, packaging design, and even the shape of your products. The more elements you protect, the stronger your position.
- Keep your eyes open for copycats. Just because the USPTO approves your trademark doesn’t mean you’re in the clear legally. While registration is strong evidence there’s no consumer confusion with a potential competitor’s mark, it’s not the final word; courts can still disagree with the USPTO’s initial assessment. More importantly, its use that matters most. In this case, Nerds might have had a tough time winning an infringement lawsuit on the name similarity alone, but Dweebs made Nerds’ case much easier\stronger by copying the packaging, colors, and mascots. Don’t give competitors easy ammunition by pushing the envelope too far.
- Make sure you stand out from the crowd. If your product’s overall look and feel reminds people of a bigger, established competitor, you could be setting yourself up for trouble down the road. Avoid issues by developing your own brand identity, without relying too heavily on existing intellectual property.
In this candy aisle clash, the Nerds have the upper hand, but these issues are easy to avoid with a little planning.
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