Regardless, it's wrong to say, as the grandparent poster did, that the courts agreed with Pirate Joes.
Also, saying that TJs "bullied" him assumes that he was not in fact trading on the TJs brand. Look at his store sign: http://www.cknw.com/2017/06/08/pirate-joes-in-vancouver-clos.... Even the font he uses is very similar. He wasn't just reselling TJs products. He was capitalizing on the TJs brand to resell products (at a high markup by the way).
I think you're possibly seeing what you want to see. Both the fonts themselves and the typesetting of the logos are pretty different. Trader Joe's logo font is serif with all the letters equally sized, the letterforms are curved to avoid right angles, and it is spaced in an orderly fashion, while Pirate Joe's is sans serif with very differently sized letters (e.g. the A and O are about twice as wide as the P), the T completely encroaches on the E to the point where the E has to shrink, the letters aren't particularly curved, and there's a heart in the middle. Basically the only thing they have in common is that they're they're both kind of whimsical.
Trademark infringement is all about context. Pirate Joe's for a place that sells pirate costumes isn't trademark infringement. Pirate Joe's in the same font that Trader Joe's uses, for a store that sells Trader Joe's products is probably crossing the line.
Note that the company was started as Transilvania Trading, and didn't get sued until after it changed its name to Pirate Joe's. Moreover, he added the disclaimer "Unauthorized, Unaffiliated and Unafraid" after the lawsuit was filed. Trader Joe's had a very legitimate trademark infringement case, especially during the period where the store was called "Pirate Joe's" with no disclaimer.
There is also additional case law that supports TJ claim from a trademark perspective:
1. TJ would argue PJ was selling watered down product bearing the TJ mark (I know a seemly strange arguement bc PJ was buying selling TJ product without alteration);
2. However, Inherent in all the value of all TJ products are: a) The TJ guarantee of product (i.e. TJ will replace any product you bought at TJ without question/receipt) and b) TJ customer services is part of the TJ product value bc TJ product is sold exclusively thru TJ which they control completely.
3. Therefore, without the guarantee and customer service the TJ product PJ sells is "materially different" than the TJ product TJ sells. (Before others go crazy about this point, this is not my position, it's case law, both warranties/customer service can be qualities of trademark products that remove them from first sale doctrine protections);
4. Tying this into the standard of trademark law, TJ can likely prove customers were confused and bought TJ product from PJ thinking it was TJ product, when in fact it was "materially different" product with the TJ mark.plus it doesn't help PJ advertises they sell TJ product.
5. Further by selling Product with the TJ mark not backed by the TJ guarantee dilutes the TJ mark and goodwill associated with the mark.
Trademark is definitely tricky, there are always questions of facts (I.e. Was there customer confusion in the marketplace) and so they are always ripe for trial. That said I agree with you TJ likely had a good trademark case supported by case law...unfortunately HN likes to try to make absolutes out of law and so when they hear one week about "first sale doctrine" the next they believe in absolute ownership and absolute rights to resell notwithstanding common knowledge to the contrary (they know there is no absolute right to resell rx; alcohol; guns; etc...)
Also, saying that TJs "bullied" him assumes that he was not in fact trading on the TJs brand. Look at his store sign: http://www.cknw.com/2017/06/08/pirate-joes-in-vancouver-clos.... Even the font he uses is very similar. He wasn't just reselling TJs products. He was capitalizing on the TJs brand to resell products (at a high markup by the way).