AutoZone's PowerZone Trademark Lawsuit Failed

AutoZone began in 1979 as Auto Shack, a retail auto-parts chain operated by Malone & Hyde in Tennessee and Arkansas. Radio Shack owner Tandy Corporation sued the company for trademark infringement in 1982, and a 1986 settlement led Malone & Hyde to adopt the AutoZone name. In 1998, Tandy introduced PowerZone sections inside Radio Shack stores for batteries and other power accessories, prompting AutoZone to sue in 1999. In 2001, a federal district court ruled that AutoZone and PowerZone were unlikely to confuse customers and rejected all five of AutoZone's claims and ruled in Tandy's favor without holding a full trial.

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