Momofuku's Chile Crunch Trademark Sparks Backlash Against Legal Threats to Small Businesses

Momofuku has a trademark on "chile crunch" and is demanding small businesses stop using similar terms, sparking backlash.

Momofuku could take legal action against companies not complying, which could bankrupt small businesses with litigation costs and lost profits.

Some companies like Homiah are resisting while others have acquiesced to Momofuku's demands.

The trademark office doesn't consider public backlash in approving trademarks, but opposers could file to block Momofuku's pending "chili crunch" trademark.

Though reputational damage is a consideration, Momofuku likely prioritizes protecting market exclusivity for the lucrative chili crunch category.