NEWS BRIEFS

Tiffany & Co. Challenges Trademark Registration of Small Franchisor

Tiffany & Co., the world-famous jeweler and luxury retailer, has filed a lawsuit in U.S. District Court for the District of New Jersey against a four-chain restaurant for infringing on Tiffany's trademark. The restaurant chain, Tiffany's Restaurants, began in 1980 with a single location in Union, NJ, known as Tiffany Gardens. It now has four outlets, three of which are company-owned and one that is franchised, and it has plans for more franchises in northern New Jersey.

Although New York-area newspapers are having fun with the lawsuit, issuing headlines such as, “Jeweler Has Bone to Pick with Rib Joint,” it's a serious matter for restaurant founder Mike Romanelli. “It's a classic case of a big guy trying to bully a little guy,” said Gregory S. Gewirtz, a partner with Lerner, David, Littenberg, Krumholz & Mentlik, LLP (Westfield, NJ), which is representing the restaurant.

Tiffany & Co.'s challenge to the restaurant chain began nearly 2 years ago when the U.S. Patent and Trademark office approved the trademark “Tiffany's Restaurants,” according to Gewirtz. Tiffany & Co. opposed registration of the trademark. When the two companies could not resolve their differences, Tiffany & Co. took its case to court. The restaurant's trademark remains in limbo ' approved by the Patent Office, but not registered because of the challenge.

Tiffany & Co. is alleging that consumers will be confused by the two trademarks and that its trademark will be diluted as a result ' notions that Gewirtz scoffs at. “We have co-existed with them for 25 years, advertised on the radio, and have a restaurant in Pine Brook that's about 5 miles from their corporate headquarters,” he told FBLA. “They are very familiar with us, and have never raised an objection in the past.” In fact, according to Gewirtz, Tiffany & Co. held its annual holiday party at Tiffany's restaurant on more than one occasion.

Tiffany & Co. issued a statement, but did not address the details of the lawsuit: “Tiffany & Co. has a reputation of international renown. The TIFFANY & CO. name is a symbol of the highest quality and design. The Company seeks to protect her value of the name, its trademarks and what they represent.”

FTC Closes Down Alleged Coffee Franchise Scam

In November, the Federal Trade Commission (“FTC”) shut down a purported franchisor of coffee racks, USA Beverages, Inc. The company, based in Costa Rica, made a series of false claims on its Web site and in marketing materials, including claims related to franchisee earnings, number of franchisees, and years in operation, according to the FTC. The company charged prospective franchisees $18,000 to $85,000 for territories.

Central to USA Beverages' alleged scam was appearing as if the company was based in Las Cruces, NM, a ruse it enhanced by using Voice over Internet Protocol (“VoIP”) services, aliases, and shills who impersonated satisfied franchisees, according to the FTC. FTC staff emphasized that VoIP is a new tool for franchise and business opportunity scams. “With the advent of Internet telephony, the days when consumers could rely upon a phone number to know where the person they call is located have come and gone,” said Lydia Parnes, director of the FTC's Bureau of Consumer Protection. “Consumers should never rely solely on what they are told or shown by sellers of franchise or business opportunities, and should always investigate the opportunity with their own eyes.”

A judge in the U.S. District Court Southern District of Florida granted an ex parte temporary restraining order, asset freeze, immediate access, and the appointment of a receiver. The case is Federal Trade Commission v. USA Beverages, Inc. Civil Action No. 05-61682-CIV.

Franchisors Urged to Register Trademark Under New 'EU' Domain

Effective on Dec. 7, 2005, companies became eligible to register domain names in the new .eu top level domain. During this period, trademark owners are given a first chance to register their names ahead of others, and Lee Plave of DLA Piper Rudnick Gray Cary US LLP has prepared a quick memo that explains why franchisors should act quickly and what they need to do. The memo even includes information for franchisors that do not have a physical presence in Europe currently, but still can possibly obtain critical .eu domain names. To obtain a copy of the memo, contact Steven Feirman of DLA Piper Rudnick at [email protected].

U.S. House Passes Lawsuit Limitation Bill

The Lawsuit Abuse Reduction Act of 2005 passed the U.S. House on Oct. 26 by a vote of 228-184. The Act would significantly strengthen courts' ability to place sanctions on lawyers that bring frivolous cases, and it would restrict plaintiffs to bringing cases in one of three jurisdictions: where the plaintiff lives; where the defendant's business is; or where the harm took place. With these new rules, proponents say that plaintiffs who seek to “game” the system would not be able to bring a frivolous case in one of the jurisdictions known for granting big awards.

“Fighting frivolous lawsuits is a high priority for the International Franchise Association,” said IFA President Matthew Shay. “Lawsuit abuse is a predatory practice that has been hurting businesses for too long.”

The bill, HR 420, is now in the Senate Judiciary Committee.

Tiffany & Co. Challenges Trademark Registration of Small Franchisor

Tiffany & Co., the world-famous jeweler and luxury retailer, has filed a lawsuit in U.S. District Court for the District of New Jersey against a four-chain restaurant for infringing on Tiffany's trademark. The restaurant chain, Tiffany's Restaurants, began in 1980 with a single location in Union, NJ, known as Tiffany Gardens. It now has four outlets, three of which are company-owned and one that is franchised, and it has plans for more franchises in northern New Jersey.

Although New York-area newspapers are having fun with the lawsuit, issuing headlines such as, “Jeweler Has Bone to Pick with Rib Joint,” it's a serious matter for restaurant founder Mike Romanelli. “It's a classic case of a big guy trying to bully a little guy,” said Gregory S. Gewirtz, a partner with Lerner, David, Littenberg, Krumholz & Mentlik, LLP (Westfield, NJ), which is representing the restaurant.

Tiffany & Co.'s challenge to the restaurant chain began nearly 2 years ago when the U.S. Patent and Trademark office approved the trademark “Tiffany's Restaurants,” according to Gewirtz. Tiffany & Co. opposed registration of the trademark. When the two companies could not resolve their differences, Tiffany & Co. took its case to court. The restaurant's trademark remains in limbo ' approved by the Patent Office, but not registered because of the challenge.

Tiffany & Co. is alleging that consumers will be confused by the two trademarks and that its trademark will be diluted as a result ' notions that Gewirtz scoffs at. “We have co-existed with them for 25 years, advertised on the radio, and have a restaurant in Pine Brook that's about 5 miles from their corporate headquarters,” he told FBLA. “They are very familiar with us, and have never raised an objection in the past.” In fact, according to Gewirtz, Tiffany & Co. held its annual holiday party at Tiffany's restaurant on more than one occasion.

Tiffany & Co. issued a statement, but did not address the details of the lawsuit: “Tiffany & Co. has a reputation of international renown. The TIFFANY & CO. name is a symbol of the highest quality and design. The Company seeks to protect her value of the name, its trademarks and what they represent.”

FTC Closes Down Alleged Coffee Franchise Scam

In November, the Federal Trade Commission (“FTC”) shut down a purported franchisor of coffee racks, USA Beverages, Inc. The company, based in Costa Rica, made a series of false claims on its Web site and in marketing materials, including claims related to franchisee earnings, number of franchisees, and years in operation, according to the FTC. The company charged prospective franchisees $18,000 to $85,000 for territories.

Central to USA Beverages' alleged scam was appearing as if the company was based in Las Cruces, NM, a ruse it enhanced by using Voice over Internet Protocol (“VoIP”) services, aliases, and shills who impersonated satisfied franchisees, according to the FTC. FTC staff emphasized that VoIP is a new tool for franchise and business opportunity scams. “With the advent of Internet telephony, the days when consumers could rely upon a phone number to know where the person they call is located have come and gone,” said Lydia Parnes, director of the FTC's Bureau of Consumer Protection. “Consumers should never rely solely on what they are told or shown by sellers of franchise or business opportunities, and should always investigate the opportunity with their own eyes.”

A judge in the U.S. District Court Southern District of Florida granted an ex parte temporary restraining order, asset freeze, immediate access, and the appointment of a receiver. The case is Federal Trade Commission v. USA Beverages, Inc. Civil Action No. 05-61682-CIV.

Franchisors Urged to Register Trademark Under New 'EU' Domain

Effective on Dec. 7, 2005, companies became eligible to register domain names in the new .eu top level domain. During this period, trademark owners are given a first chance to register their names ahead of others, and Lee Plave of DLA Piper Rudnick Gray Cary US LLP has prepared a quick memo that explains why franchisors should act quickly and what they need to do. The memo even includes information for franchisors that do not have a physical presence in Europe currently, but still can possibly obtain critical .eu domain names. To obtain a copy of the memo, contact Steven Feirman of DLA Piper Rudnick at [email protected].

U.S. House Passes Lawsuit Limitation Bill

The Lawsuit Abuse Reduction Act of 2005 passed the U.S. House on Oct. 26 by a vote of 228-184. The Act would significantly strengthen courts' ability to place sanctions on lawyers that bring frivolous cases, and it would restrict plaintiffs to bringing cases in one of three jurisdictions: where the plaintiff lives; where the defendant's business is; or where the harm took place. With these new rules, proponents say that plaintiffs who seek to “game” the system would not be able to bring a frivolous case in one of the jurisdictions known for granting big awards.

“Fighting frivolous lawsuits is a high priority for the International Franchise Association,” said IFA President Matthew Shay. “Lawsuit abuse is a predatory practice that has been hurting businesses for too long.”

The bill, HR 420, is now in the Senate Judiciary Committee.