How Common Law Trademark Rights Took Burger King’s Crown

It sounds like something out of a sitcom, but it’s real: In one small Illinois town, Burger King—the global fast-food giant—can’t open a restaurant or even use its name. Why? Because a local family-owned restaurant got there first and claimed the name decades ago. And thanks to trademark law, they still reign supreme in their hometown.

According to a local news report, the town of Mattoon, Illinois, is the one place where Burger King isn’t king. Instead, a small, independent restaurant called “Burger King” has been serving burgers and milkshakes since the 1950s—and they’ve got the exclusive rights to the name within their territory.

How Did This Happen?

Back in 1957, long before the fast-food giant became a household name, the Hoots family opened their Burger King restaurant in Mattoon and registered the name with the State of Illinois. A year later, the national Burger King chain started expanding—but by then, the Hoots family’s local rights were already secured.

The case ended up in federal court, and in 1968, the Seventh Circuit ruled that the national Burger King chain could not operate or advertise under the “Burger King” name within a certain radius of Mattoon. To this day, the original Burger King stands proudly in the town, and the fast-food giant has stayed out.

The Landmark Case: Burger King of Fla., Inc. v. Hoots

This legal showdown became a defining case in trademark law: Burger King of Fla., Inc. v. Hoots, 403 F.2d 904 (7th Cir. 1968). Despite Burger King’s federal trademark registration, the Hoots family had established common law trademark rights based on their earlier, good faith use of the name in the Mattoon market. That prior use gave them the exclusive right to the name within their established geographic area.

Critically, the court applied the principle now found in Section 1115(b)(5) of the Lanham Act, allowing local businesses to preserve trademark rights where they innocently adopted and used a mark before a federal registrant entered the market. The court struck a balance: Burger King could keep its trademark elsewhere, but the crown stayed firmly on the heads of the Mattoon restaurant within their established trading area.

Trademark Lessons from the Burger King Case

This case is more than just a quirky legal story—it’s a masterclass in trademark strategy. Here’s what small businesses should learn:

• Common Law Rights Are Real and Enforceable: You don’t need a federal trademark registration to have enforceable rights. If you’re the first to use a name in commerce, you have priority—at least in your local market.
• First to Use Still Matters: Even global brands can be blocked if a local business establishes rights first. Federal registration is powerful but doesn’t erase earlier good faith local use.
• Geographic Scope of Rights Is Key: The Hoots family didn’t win rights across all of Illinois—just in Mattoon. This reflects the principle that common law rights are tied to where you actually do business and build reputation.
• Good Faith Use Strengthens Your Position: The Hoots adopted the “Burger King” name without knowing about the national chain. That innocent adoption helped preserve their rights. Bad faith adoption (copying a well-known brand) is unlikely to succeed.
• Federal Registration Helps Expand Beyond Your Backyard: While common law rights protected the Mattoon diner locally, a federal trademark registration is what allows a business to grow and defend its brand nationwide.

Can This Still Happen Today?

Absolutely. While it’s rarer thanks to online research and better legal strategies, small businesses still control their local markets—and can block larger competitors if they assert their rights early. With the rise of online commerce and social media, these disputes are more complex, but the core legal principles haven’t changed.

The Mattoon case is still cited today when courts analyze conflicts between federal trademark registrations and earlier local rights. It’s a reminder that trademark law isn’t just for big companies—it’s for anyone who wants to protect the name they worked hard to build.

Final Thoughts

The Burger King case proves that timing and local reputation can outweigh even the most powerful national brands. If you’re building a business, don’t underestimate the value of protecting your name early. Start with a clearance search, assert your common law rights, and when you’re ready, secure a federal registration to wear your crown with confidence.

Want to secure your own brand’s crown? Contact Harrigan IP today to schedule a consultation with an experienced trademark attorney.