The United States District Court, District of Minnesota,
has issued an order granting Gander Mountain a victory in its
long-standing dispute with rival Cabela's over the right to use certain Gander
Mountain trademarks in direct marketing. The order granted Gander Mountain's motion for summary judgment while
denying Cabela's motion for summary judgment and dismissing Cabela's
counterclaims with prejudice and on the merits.
Quoting from the Judge's order, “Gander Mountain is free to use its
trademarks in all respects including direct marketing to consumers.”
After the court's order has
been formally entered, it will be subject to appeal.
“We are now going to accelerate our pace toward becoming the leading
multi-channel outdoor retailer in the nation,” said Mark Baker, Gander
Mountain president and CEO. “Gander Mountain was the first major catalog
company in our industry. We now have the freedom to regain that position, and
with our upcoming entry into on-line selling, we have significant new
opportunities to leverage the powerful Gander Mountain brand. When you add all
that to our expanding network of retail stores, which will stand at 115 stores
in 23 states by the end of the year, we believe we are well positioned to
become the premier multi-channel outdoor retailer.”
Cabela's issued a statement in which the company said that it believes this ruling is contrary to the agreement that was entered into by Cabela's and Gander Mountain in 1996 where Cabela's bought Gander Mountain's catalog division and acquired rights to Gander Mountain's trademarks in direct marketing. Cabela's is currently reviewing the ruling and discussing its alternatives with legal counsel. These alternatives include, but are not limited to, an appeal of the ruling. While Cabela's and its legal counsel are disappointed in the ruling, Cabela's remains optimistic regarding any further litigation in this matter. Cabela's will continue to protect its legal rights.