The Hatch Name and the Certification Mark
The Hatch Valley of New Mexico is a narrow stretch of irrigated land along the Rio Grande, roughly thirty miles long. Its combination of altitude, desert heat, cool nights, and rich soils produces chile with a flavor that growers here have cultivated for generations.
Because the Hatch name carries real value, the rules for using it on chile products have a long history. In 1987, Hatch Chile Company registered a stylized "HATCH" trademark for its canned chile products. Beginning in 2013, the Hatch Chile Association — alongside El Encanto, Inc. (d/b/a Bueno Foods), a New Mexico processor — worked through the Trademark Trial and Appeal Board to establish the Association's own HATCH certification mark: a legal tool that lets the Association verify and stand behind genuine Hatch Valley chile.
In September 2017, the parties resolved that trademark dispute through a settlement agreement. With that agreement signed, the trademark question was settled.
A Decade of Proceedings
The dispute moved through multiple venues — the Trademark Trial and Appeal Board (TTAB), the federal circuit courts, and ultimately the New Mexico state courts. The timeline below traces the major milestones.
"HATCH" trademark registered
Hatch Chile Company registers a stylized "HATCH" mark for its canned chile products.
TTAB cancellation filed (No. 92056871)
El Encanto, Inc. (d/b/a Bueno Foods) and the Hatch Chile Association jointly file a cancellation petition before the Trademark Trial and Appeal Board, challenging Hatch Chile Company's "HATCH" registration.
TTAB opposition filed (No. 91223190)
Hatch Chile Company files a TTAB opposition to the Association's application for the "HATCH" certification mark.
Tenth Circuit discovery ruling
The U.S. Court of Appeals for the Tenth Circuit rules in the growers' favor on a discovery dispute, allowing the proceedings to move forward.
Settlement agreement reached
The parties reach a settlement. Hatch Chile Company agrees not to oppose the Association's certification mark for unprocessed chile and agrees to pay the Association $40 per ton on green chile used in its products.
Association sues to enforce the settlement (D-307-CV-2017-03793)
When Hatch Chile Company fails to honor the settlement (no joint statement is issued and no royalties are paid), the Association files suit in the Third Judicial District Court for Doña Ana County, New Mexico, seeking specific performance and damages for breach of contract.
"HINT OF HATCH" mark opposed (TTAB No. 87863410)
The Association and El Encanto oppose Flagship Food Group's "HINT OF HATCH" trademark application before the TTAB, continuing efforts to protect the Hatch name.
Amended complaint filed
The Association files a verified amended complaint, adding claims including malicious abuse of process and prima facie tort alongside the specific-performance and breach-of-contract claims.
Jury trial in Doña Ana County
After years of pretrial proceedings, the case is tried to a jury before Judge Manuel I. Arrieta in the Third Judicial District Court.
Judgment entered for the Association
The court enters judgment for the Association on the special verdict, granting equitable relief that enforces the 2017 settlement terms in case D-307-CV-2017-03793.
Hatch Chile Company appeals (A-1-CA-42892)
Hatch Chile Company files a notice of appeal and later posts a $553,000 supersedeas bond to stay enforcement. The appeal is docketed in the New Mexico Court of Appeals as A-1-CA-42892.
Appeal referred to mediation
After the appellants file their brief in chief, the New Mexico Court of Appeals refers the case to mediation and stays the briefing schedule for 90 days. The appeal is currently in mediation.
What the Settlement Required
The September 2017 settlement was a significant step for Hatch Valley growers. Under its terms, Hatch Chile Company agreed to two concrete obligations: it would not oppose the Association's certification mark for unprocessed Hatch chile, and it would pay the Association $40 per ton on green chile used in its products. Those royalties were intended to flow back to the Association and, through it, to the growers who make the Hatch name worth protecting.
The terms of that agreement have not been carried out — the agreed joint statement was not issued and the agreed payments were not made. To enforce the agreement, the Association brought an action for specific performance, asking the court to require that the signed settlement be honored. That is the entirety of the present dispute: it is about enforcing the 2017 settlement agreement, not relitigating the trademark.
The District Court Win
The case was tried to a jury in the Third Judicial District Court for Doña Ana County in April 2025. On July 28, 2025, the court entered judgment for the Association on the special verdict in case D-307-CV-2017-03793 — including equitable relief that enforces the 2017 settlement. The judgment affirmed that the agreement was valid and enforceable and that the Association was entitled to the terms it had negotiated. The settlement terms are part of the public court record because the specific-performance action placed them there.
Hatch Chile Company appealed that judgment on August 6, 2025, posting a $553,000 supersedeas bond to stay enforcement during the appeal. The appeal is docketed as A-1-CA-42892 in the New Mexico Court of Appeals; in April 2026, the court referred the case to mediation and stayed briefing, so the matter is currently in mediation.
Why It Matters for Growers
The HATCH certification mark gives Hatch Valley growers an enforceable way to stand behind their chile, and gives buyers confidence in what they are purchasing. The matter now before the courts is narrow and contractual — the Association is simply asking that the settlement agreement both parties signed in 2017 be honored.
The Association's certification mark — won through this litigation — is the legal instrument that prevents that outcome. It gives the Association the authority to license the Hatch name to verified growers and to challenge unauthorized use. The lawsuit is not an abstraction; it is about whether small Hatch Valley growers control the name they built.
Latest Updates
- Hatch Chile Company appeals; case referred to mediation
Hatch Chile Company appealed the judgment to the New Mexico Court of Appeals (A-1-CA-42892). In April 2026 the court referred the appeal to mediation and stayed briefing for 90 days.
- Court enters judgment for the Association after jury trial
After an April 2025 jury trial, the Third Judicial District Court entered judgment for the Hatch Chile Association in its specific-performance suit (D-307-CV-2017-03793), including equitable relief enforcing the 2017 settlement.