Franchisor Granted Permanent Injunction against Franchisee Use of Trade Name, Trademarks and Service Marks
In the business litigation case of Ramada Worldwide, Inc. v. Van Horn Hospitality, LLC, U.S. Dist. Ct. 12-7-6004 the plaintiff Ramada Worldwide Inc. filed a motion for permanent injunction and final judgment by default. RWI owned and had the exclusive right to license the service mark RAMADA and various related trade names, trademarks, as well as service marks, logos, and derivations thereof. On Dec. 17, 2008, RWI entered into a franchise agreement with defendant Van Horn Hospitality. Defendants Ken Pansuria, Bharat Bhagat, and Aneel Ramolia executed personal guaranties for Van Horn’s obligations under the franchise agreement. Van Horn breached the franchise agreement and failed to cure. RWI then terminated the franchise agreement, but defendants continued to use the Ramada marks. The court granted judgment against defendants, jointly and severally. The court further granted RWI a permanent injunction. RWI suffered, and would continue to suffer, violations of its trademarks. Trademark infringement constitutes an irreparable injury as a matter of law. RWI set forth a cause of action under the Lanham Act and no defense was offered. Finally, the balance of equities favored granting injunctive relief. Defendants’ conduct clearly violated the Lanham Act and served no legitimate purpose. Additionally, an injunction would serve the public interest because it would prevent deception and confusion. .
Reference: Case & Analysis, New Jersey Law Journal, 219 N.J.L.J. 818 (March 9, 2015)
Filed Under: Business Litigation; Commercial Litigation; Injunction Trademarks; Trade Secrets
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