Gander Mountain wins trademark battle

ST. PAUL, Minn. and SIDNEY, Neb. The United States District Court, District of Minnesota has ruled in favor of Gander Mountain Co. in a dispute between the company and Cabela's over the right to use certain Gander Mountain trademarks in direct marketing, Gander Mountain announced today.

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. 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 online 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."

In a separate release, Cabela's 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.