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Court Watch

By Lauren Sullins Ralls
November 30, 2015

Unauthorized Use of Registered Mark

In Choice Hotels Int'l, Inc. v. Zeal, LLC, No. 4:13-cv-1961 (Sept. 19, 2015) (D.S.C. Sept. 29, 2015), the U.S. District Court for South Carolina granted summary judgment relating to the unpermitted use of the ECONO LODGE mark, as well as use of the ECONO STUDIOS INN & SUITES name, by the successors-in-interest of a former Econo Lodge franchisee.

The plaintiff, franchisor Choice Hotels International, Inc., is the owner of a family of ECONO LODGE trademarks that are both used and registered in connection with its lodging franchise. The defendants were owners of a hotel in Myrtle Beach that was previously owned by a former franchisee of Choice Hotels. Although the former franchisee had operated an ECONO LODGE INN & SUITES hotel, its agreement was terminated before the defendants acquired the hotel. Nonetheless, the defendants continued to operate the hotel as an ECONO LODGE INN & SUITES for some time before changing the name to ECONO STUDIOS INN & SUITES.

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