In Defense of Small Business

I read an article in yesterday's Wall Street Journal that really irritated me and I feel the need to comment on it. A small Trenton, NJ manufacturer of all-natural fertilizer (TerraCycle Inc. - www.terracycle.net) is being sued by industry giant Scotts Miracle-Gro Inc. The article states that Scotts claims, among other things, that TerraCycle's green and yellow packaging infringes on the trade dress of the Scott Miracle-Gro brand and that TerraCycle made false claims about the superiority of its product. Scotts asks that all gains, profits and benefits generated by the alleged infractions be awarded to Scotts. This would destroy TerraCycle - a company with just $1.5 million in annual sales. By comparison, Scotts Miracle-Gro Inc. is a $2.7 billion company.

I'm not a lawyer so I didn't even bother reading the fine print of the lawsuit itself. However - this looks to me like a pretty cut and dry case of bullying by a huge corporation with a cadre of lawyers looking for something to do to justify their redundant jobs. Might as well wipe out an up-and-coming rival whose annual revenue is probably less than the Top Lawyer's 2006 compensation. (Have to look that one up in the annual report to verify it but it probably is not too far off!) Yeah, TerraCycle's packaging looks vaguely like Scott's. But of course your colors are going to be green and yellow if you are a fertilizer company. The "false claims" claim looks bogus too. The whole thing looks like a sham of a lawsuit to slap that pesky mosquito of a rival who can't afford a costly legal defense.

TerraCycle - a truly entrepreneurial company I first read about in Inc. magazine - is using a blog as its main defense - www.suedbyscotts.com. I believe strongly in the capitalistic system and that only companies which operate efficiently with a quality product and/or service should survive. But - I don't believe in death by lawsuit. TerraCycle did nothing deserving the harsh terms of this lawsuit - they are just good marketers. I know I for one will not be using the Scotts' 5 Step System on my lawn ever again. Too bad that the $500 in lost revenue from me as a customer will do nothing to this $2.3 billion giant.

That website again is www.suedbyscotts.com.