The Growth of Intellectual Property: A History of the Ownership of Ideas in the United States

Abstract

In 1987, Taco Cabana, a chain of Mexican restaurants in Houston, Texas, brought suit against Two Pesos, a rival chain, claiming that Two Pesos had deliberately copied Taco Cabana’s decor. A combination of nonfunctional features -overhead garage doors used to separate a patio area from the dining room, a bright color scheme intended to create a “festive atmosphere,” a distinctive roof design, etc. -lent a distinctive overall image to each of its restaurants, Taco Cabana argued. Two Pesos had acted wrongfully in appropriating that image without permission. Five years and several court rulings later, Taco Cabana prevailed. Two Pesos was required to pay several million dollars in damages and alter the appearance of its restaurants.

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