There Can Only Be One Pickle... Or Can There?
A scrappy baseball team in the Pacific Northwest is going head-to-head with Disney over the right to use the "Pickles" name
If this were a movie, it’d be the classic David vs. Goliath narrative: a small, scrappy team facing off against a massive corporation. The underdog in our story is a collegiate summer baseball team known as the Portland Pickles. The giant? The Walt Disney Company.
Our plot revolves around Disney’s new animated series Win or Lose, which features a fictional softball team called the Peaks Valley Pickles. The problem? The Portland Pickles have owned their trademarked logo since 2016 and believe that Disney’s logo is so similar that it’s causing confusion and damaging their brand. They also argue that Disney has profited from this confusion by selling merchandise featuring the Peaks Valley Pickles logo, without ever asking for permission.
But why does this matter? Why should we care if a small baseball team in Oregon that plays only a few months is being copied by a global entertainment titan like Disney? Should we really deprive the world of more Disney entertainment just so a tiny business can sell a few extra slices of pickle pizza? Side note: they also serve pickle margaritas and pickle ice cream, too.
The fact that the U.S. legal system allows a small team like the Pickles to challenge a giant like Disney is a key reason why America is considered one of the best places to operate a business. But there’s a bigger question to consider with these polices: can these protections go too far, limiting competition and stifling innovation?
The Economics Behind Trademarks
Trademarks give businesses, big or small, exclusive rights to profit from their creations. They also serve as a signal for consumers. Economic signals in this sense tell consumers what to expect, whether it’s the reliability of a Nike sneaker or the familiarity of the Portland Pickles’ quirky branding. A strong trademark communicates that consistency, which is another reason businesses want to protect it.
But imagine an economy where companies were allowed to freely copy each other. For a company like the Portland Pickles, whose reputation is tied to their unique brand, this could be a real problem. A brand that has to face an onslaught of counterfeit sees a reduction in profits, and consumers incur additional costs related to identifying the true owner of the product.
How Trademarks Create Barriers to Entry
Trademarks are intended to protect the investment firms put into developing their logos and brands, but they also create a certain degree of market power that can limit competition. The Pickles’ trademark certainly differentiates them from other sports teams in the country.
But for another competing team to enter the market, they can’t have to start from scratch. The Pickles’ trademark prevents their competitors from simply copying their visual identity and earning some quick profits to fund their new business. By limiting other businesses from using similar branding, trademarks make it harder for new competitors to carve out space in the same industry.
This protection, however, can shield the business from some of the competitive pressure that encourages innovation. The result? Established companies may become complacent and rely on trademark protection to maintain their market share. Instead of becoming more innovative, some companies may use their profits just to keep competitors out of the market.
The Pros and Cons of Market Power
On the one hand, trademarks give businesses like the Portland Pickles the power to establish their presence in an area. This market power allows them to maximize profits on their investments. Without trademark protection, counterfeit products could eat away at the Pickles’ profitability.
On the flip side, this same market power can stifle competition by making it harder for new companies to enter the market. This can be inefficient as those new firms may need to spend extra time and money ensuring they don’t infringe on existing trademarks, which could make their branding less effective or increase their costs.
While it’s possible that a trademark could cause a firm to become complacent, businesses also have a strong incentive to invest in improving their products and services. Consumers benefit if those companies decide to offer better quality and greater value. So, while barriers to entry may limit some competition, they can also spur better products and more reliable services.
Final Thoughts
In the end, it will all come down to the courts. But that’s one of the neat things about the U.S. economy: we have a court system where businesses, whether big or small, can fight it out and get a fair hearing. This is one reason why the U.S. is such a great place to do business: strong intellectual property protections and a functional court system allow businesses to safeguard their hard work, whether they’re a mom-and-pop operation or a corporate titan.
It’s so much more common to hear of Disney suing smaller companies that infringe on their trademarks and creations. But do the Pickles have a real shot at beating the Goliath that is Disney? Only time will tell. One thing’s for sure: in the U.S., even a small team with big ideas has the legal tools to fight for its place in the market.
Thank you for reading Monday Morning Economist! This free weekly newsletter explores the economics behind pop culture and current events. This newsletter lands in the inbox of thousands of subscribers every week! You can support this newsletter by sharing this free post or becoming a paid supporter:
Only one former player for the Portland Pickles (Kyle Manzardo) has made it to Major League Baseball [Portland Pickles]
The Portland Pickles play in Walker Stadium, which has an official seating capacity of 1,566 [City of Portland, Oregon]
The Portland Pickles had an average attendance of 2,252 for the 2024 season. [Ballpark Digest]
Disney’s Win or Lose series currently holds an 8.0/10 rating after more than 3,700 reviews [IMDB]
The United States ranks as the sixth best country in the World Bank’s Ease of Doing Business index [World Bank Group]
That game was a lot of fun. After the pickle martini and the pickle ice cream though, I’ve had to step away from consuming pickles. The real question about the Disney show, though is whether they do pickle juice drinking contests between innings. If they do, I hope the Portland pickles sue them into oblivion.
Interesting trademark twist. Is the lawsuit with Disney just to protect themselves from others that might infringe on their trademark -- a necessary step for future court battles against others? Because it seems that the team benefits from the additional merch sales, and will benefit from a monetary settlement.