The Taco Tuesday trademark fight takes a turn, and a N.J. bar owner now finds himself in a tougher place

It’s Taco Tuesday™ at Gregory’s Bar in Somers Point, N.J., just as it has been for four decades, but the mood is not as joyous as usual.

The Wall Street Journal reported that Wyoming-based chain Taco John’s had given up its fight defending its trademark of the “Taco Tuesday” phrase, bowing to a challenge from Taco Bell.

The fast-food giant, with $2 billion in annual sales, filed a petition in May with the U.S. Patent and Trademark Office seeking to cancel the trademark, which — after a legal twist — is held by Taco John’s in 49 states and Gregory’s, which has the rights only in New Jersey.

Taco Bell had started a campaign to free the trademark, contending that “Taco Tuesday” is generic and could be used by any restaurant anywhere.

But now Gregory’s stands alone. Saying he was “stunned” by Taco John’s apparent capitulation, Gregory’s owner Gregory Gregory nonetheless vowed to “keep up the good fight. We’re really the underdog now, though.”

» READ MORE: Taco Bell wants to free "Taco Tuesday"

It came down to money for Taco John’s, as its chief executive, Jim Creel, told the Journal. He said the company estimated that defending the trademark could cost as much as $1 million. He said Taco John’s would donate $40,000 to Children of Restaurant Employees, a nonprofit group.

Gregory, who said his family coined “Taco Tuesday” in 1979, said he does not have a million-dollar defense fund but hoped to find what he called a white knight to soldier on. “This is David and Goliath, and my slingshot got a little looser.”

Gregory told The Inquirer in May that his bar was still using its original recipe, including a salsa recipe from Playboy. A champion rower with Temple University in the 1970s, Gregory said he got the idea from the food court of the original Gallery in Center City Philadelphia, when he noticed the taco stand was always the busiest. The bar sells discounted tacos on Tuesdays, two for $2.50, and Thursdays.

Gregory’s registered its trademark in 1982, but did not submit evidence that the trademark was being used. As the Patent and Trademark Office canceled the registration in 1989, Taco John’s was awarded the trademark

Litigation followed, and Gregory’s won the rights for “Taco Tuesday” in New Jersey while Taco John’s — whose 370 locations are mainly in the West and Midwest — has the rights for the rest of the United States.

Staff writer Amy S. Rosenberg contributed to this article.