Which 1992 Supreme Court case upheld damages for Taco Cabana over restaurant trade dress?

The 1992 Supreme Court case was Two Pesos, Inc. v. Taco Cabana, Inc.

The dispute concerned restaurant trade dress: the overall visual appearance and atmosphere of Taco Cabana’s establishments. Taco Cabana argued that Two Pesos had copied elements including the restaurants’ colorful exterior, interior décor, menu presentation, signage, and service-related appearance. A jury awarded Taco Cabana damages, and the Supreme Court affirmed the central judgment.

The Court held that inherently distinctive trade dress could receive protection under Section 43(a) of the Lanham Act without proof that the trade dress had already acquired secondary meaning. In practical terms, a restaurant’s distinctive total image could function as a source identifier, much like a trademark.

The case is often remembered as a food-law decision, but its importance reaches far beyond restaurants. It helped clarify how businesses can protect packaging, design, décor, and other presentation elements from confusing imitation. It did not give Taco Cabana ownership of generic Mexican restaurant features; the protected interest was the distinctive combination and commercial impression.