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May 3, 2009

Trademark Dispute Breaks Up Relationship Between Marriage Marketers

Maryland-based Marriage Savers, Inc., a non-profit marriage counseling service and operator of www.marriagesavers.com, has filed a trademark action in the Eastern District of Virginia against Lovepath International, Inc., another marriage counseling organization, which allegedly has been conducting business using the confusingly similar domain name marriagesaver.com.  As of this writing, www.marriagesaver.com has been taken down.

According to the complaint, Marriage Savers owns the federally registered trademark "MARRIAGE SAVERS" and has used the mark since the early 1990's in connection with a wide variety of products and services, including writing printed materials and publications in the field of marriage, conducting workshops and seminars to community leaders, and offering counseling to couples.  

975584_broken_heart.jpgLovepath, according to the suit, also offers seminars, books, and online resources geared to marriage counseling and markets them using the name "Marriage Saver."  Marriage Savers contends that Joe Beam, Lovepath's founder and president, is not only familiar with Marriage Savers and its trademarks but has actually been a speaker at its conferences.  

Marriage Savers filed the lawsuit on April 20, 2009, and brings claims of trademark infringement, false designation of origin and false advertising, cybersquatting, and related common-law claims.  It is asking the court to award an injunction to stop the infringing activity and prevent future infringment, to order the destruction of any infringing materials, to order that Lovepath transfer its domain names to Marriage Savers, and to award compensatory, statutory, and punitive damages.

While regrettable that these marriage-counseling services can't seem to exist together in blissful harmony, the case looks like a strong one.  Under 15 U.S.C. § 1114(1), trademark infringement exists where (1) the mark is distinctive and has been used in commerce; (2) the plaintiff is the legal or equitable owner of the mark; and (3) the defendant is using a similar mark which is likely to cause confusion among consumers as to the source of the goods and services.  While one might think Lovepath could escape liability by arguing the MARRIAGE SAVERS mark lacks "distinctiveness," in this particular case, the mark was registered over five years ago and has been used continuously ever since, resulting in "incontestable" status under 15 U.S.C. § 1065.  Once a mark becomes incontestable, it may no longer be attacked for lack of distinctiveness.
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April 14, 2009

Trademark Litigation Between Coke and Pepsi Enters Another Round

On Monday, the company that owns Gatorade (a Pepsi subsidiary) filed suit against Coca-Cola and Energy Brands, accusing them of false advertising and other unfair competition in connection with its two-week advertising campaign for Coke's Powerade ION4 sports drink.

In the advertising campaign, Powerade (which continues to be marketed as "the complete sports drink") was claimed to be superior to Gatorade (identified, by comparison, as an "incomplete" sports drink) due to Powerade's inclusion of trace amounts of two electrolytes, calcium and magnesium.  According to the lawsuit, no evidence exists to suggest that the addition of these two minerals--especially in such tiny quantities--provides any nutritional or physiological benefits.  Pepsi says Coke isn't playing fair when it displays a photo of a Gatorade bottle lopped in half alongside the slogan, "Don't settle for an incomplete sports drink."  In legal terms, it claims Coke is guilty of "false advertising, trademark dilution, deceptive acts and practices, injury to business reputation and unfair competition."

78976-poweradel.jpg The Lanham Act, on which all of Pepsi's claims are based in various forms, prohibits misleading advertisements.  Specifically, Section 43(a) of the Lanham Act, found at 15 U.S.C.A. § 1125, makes a defendant liable for false advertising where all of the following conditions are met: (1) the defendant made a misrepresentation in commercial advertising or promotion concerning goods, services, or commercial activities; (2) the misrepresentation actually deceived or tended to deceive its recipients; (3) the misrepresentation was likely to influence purchasing decisions; (4) the misrepresentation injured or was likely to injure the plaintiff; and (5) the misrepresentation was made in commerce.

As the trial moves forward, the key issues are going to be whether the statements in Coke's advertising were actually false and whether labeling Gatorade an "incomplete sports drink" tends to deceive consumers and/or influence purchasing decisions. 
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