David Chang, Michelin chef behind Momofuku, is accused of 'trademark bullying' and trying to dominate condiment market by sending dozens of cease and desist letters to restaurants copying his 'chili crunch'

The famous founder of Momofuku, a food empire that boasts renowned restaurants around the world, has been accused of 'trademark bullying' and of trying to conquer the condiment market.

Celeb Chef David Chang, who previously starred in his own Netflix series, Ugly Delicious, has drawn the ire of small competitors, who are accusing him of waging a harsh campaign to dominate the chili crisp condiment market.

The chef's company has reportedly sent cease-and-desist letters to rivals using the words 'chili crunch' or 'chile crunch' on their condiment labels.

They have been given 90 days to drop the words from their labels. 

Momofuku claim they have issued the letters to protect their Momofuku Chili Crunch sauce, which they describe as 'a spicy-crunchy chili oil' that 'features an umami base.' 

David Chang is a celebrity chef who is currently appearing in a Hulu series with Chrissy Teigen. His company, Momofuku, is being accused of being a 'trademark bully'

The company issued cease-and-desist letters ordering small businesses to remove any language on their products containing the words 'chili crunch' or 'chile crunch' 

Momofuku boasts restaurants in New York City, Boston, Washington D.C., Boston, Los Angeles, Las Vegas, Toronto, Ontario, and Sydney, Australia; pictured Momofuku 207 in the East Village

Other entrepreneurs, however, see the action as part of a large and vicious legal strategy with the goal being to stamp out competition.

Although Momofuku doesn't currently own the registered trademark to 'chili crunch,' they began the filing process with the US Patent and Trademark Office (USPTO) on March 29.

The filing process usually takes about 12 to 18 months, and does not guarantee that the company will receive the trademark.

The company does own the trademark rights to 'chile crunch,' which was registered with the USPTO in 2023 as part of legal settlement with Chile Colonial, LLC.

Chile Colonial had taken legal action against Momofuku for 'trademark infringement' and 'unfair competition,' before the case was resolved in court.

Michelle Tew, the founder of Malaysian food brand Homiah, is one of the competitors who received the cease-and-desist letter.

The letter allegedly stated that Momofuku was the sole 'owner of all trademark rights' for condiments with the words 'chile crunch' or 'chili crunch.'

The letter informed Tew that her food product, the Homiah Sambal Chili Crunch, which is based on her family's recipe, was a trademark infringement.

Momufuku was concerned that shoppers could confuse a bottle of Homiah Sambal Chili Crunch with a bottle of Momofuku Chili Crunch, despite the two condiments having dramatically different labels.

Tew told the Guardian that she felt betrayed by Chang and described receiving the letter as 'a punch in the gut.'

She said that Chang, who is of Korean descent, had helped shepherd Asian food into the mainstream food scene. 

'If Kraft Heinz hit me up [with a cease-and-desist letter] it would have been distressing,' Tew said. 'But the fact that it was Momofuku makes me feel really, really sad.'

Caleb Wang, owner of Seattle-based MìLà, also received one of Chang's cease-and-desist letters. 

Wang and his wife and co-owner, Jang Liao, had decided to overhaul their line of condiments. They increased the quantity of crunchy fried garlic in their previous recipe, and changed the product's name to reflect the new taste: MìLà Chili Crunch.

'Our intent was to describe the product,' Wang said.

Momofuku's cease-and-desist letter stated that Momofuku has been 'offering' its chili crunch condiment since 2018. And bottles of their chili crunch sauce have been available to shoppers since 2020.

Entrepreneurs felt that Chang's cease-and-desist letters were driven by a desire to dominate the chili crisp condiment market

Michelle Tew, the founder of Malaysian food brand Homiah, is one of the competitors who received the cease-and-desist letter. In this picture, she is holding up some of the products she offers

Momofuku owns the trademark for 'Chile Crunch' but not for 'Chili Crunch'

The letter reportedly asserted that Momofuku's sauce has 'developed valuable common law rights' to its 'chili crunch' trademark.

Common law rights refer to a brand name that is not trademarked with the USPTO, but has grown distinctive over time.

In their letter, Momofuku cited their product's popularity, media coverage, and Amazon reviews as evidence of the name's distinctiveness. 

Stephen Coates, the lawyer representing Michelle Tew's Homiah, described Chang's Momofuku as a 'trademark bully.'

Coates felt that Momofuku's legal campaign had targeted small businesses: 'This is a clear case of them picking on small businesses with a letter campaign hoping they’ll cave because of the financial pressure.'

If a small competitor caves under legal pressure and drops the 'chili crunch' language from their product, Momofuku's sauce will appear more distinct, which will, in turn, help them in their mission to secure a registered trademark.

Some competitors have accused Momofuku of targeting small businesses that lack the requisite resources to fight the cease-and-desist letter

In March 2023, the company raised $17.5 million in a round of Series A funding. And in September of that same year, they brought in $11. 5 million in a round of funding.

In 2023, Momofuku netted $50 million in sales.

The companies that Momofuku is allegedly targeting are much smaller in size.

Many of them are one-, two-, or three-person companies whose total revenue is under $1 million.

Because of their comparatively limited resources, several companies who have received the cease-and-desist letter have capitulated, unwilling to expend the time and money necessary for a legal wrangle.

The high demand for chili crisp condiments make the market potentially worth billions of dollars.

Many entrepreneurs think that Momofuku isn't motivated by a desire to protect their brand. Instead, they believe that the food empire is hoping to dominate the chili crisp condiment market.

'It feels like it's not done with good intent,' MìLà's Wang said.

He said it was 'like potentially boxing out smaller competitors and trying to own a space that’s tough to own.'

David Chang has been accused of taking aggressive legal measures in the past. In 2022, he sued Manhattan's Yuzu Kitchen for trademark infringement.

David Chang's net-worth is estimated to be around $60 million. He owns restaurants in New York City, Boston, Washington D.C., Boston, Los Angeles, Las Vegas, Toronto, Ontario, and Sydney, Australia.

He is currently starring in a Hulu food series alongside Chrissy Teigen, called Chrissy and Dave Dine Out.

This isn't the first time Chang has been accused of strong-arm business tactics. 

In 2022, Momofuku took legal action against Manhattan restaurant Yuzu Kitchen for trademark infringement. 

By August 2022, Momofuku had voluntarily dropped all its claims against Yuzu Kitchen.

Today, Yuzu Kitchen is closed, and Momofuku remains a powerful player in the food business.