Parody defense typically relies on there being an underlying comment about the brand or product. Commercial use with no clear speech purpose will not be looked on favorably by a court. Copying someone’s brand isn’t a parody by the court’s Rogers test which will be applied in this case to determine if it is a legal parody.
The Rogers test:
> First, the Court must determine whether the work at issue is “expressive” — that is, does the work “communicat[e] ideas or express[ ] points of view.”
Second, if the work is expressive, then the plaintiff must show that the defendant’s use of the trademark either (i) is not artistically relevant to the work, or (ii) is explicitly misleading to consumers as to the source or content of the work.
There is no idea or point of view being communicated by naming your business L’Eggo my Eggroll and copying the colors and style, and I haven’t seen the defendants arguing that. So the second part of the test won’t even be considered.
There actually is case law around bad puns/rhymes as parody branding (Bad Spaniels dog toy shaped and styled like Jack Daniel’s bottle). The court did not accept it as fair use since there isn’t a comment or idea being communicated. It doesn’t matter that no one is going to confuse a dog toy with a bottle of whisky. “We operate an eggroll food truck” is not going to be accepted as an idea or comment for the purposes of parody.
They could argue that they are not actually copying the trademark, but the use of the phrase and colors is pretty damning even if you accept that the cursive is not the same (I don’t see a court buying that the cursive is different enough. It doesn’t matter that it isn’t a stencil perfect match in the totality of circumstances.) This argument is also mutually exclusive to the parody argument since it attempts to deny that there is any brand similarity.
Ironically, someone could now sell t-shirts saying “L’Eggo my trademark” using the exact font and it would be pretty clear fair use parody of Kellog’s lawsuit. It would be a comment specifically poking fun of them suing over that phrase and branding, and the absurdities of trademark law.
I’m not saying that any of this is right or wrong, I’m just saying that from a legal perspective Kellog’s is on pretty firm ground from all publicly known information.