Michigan businesses put a lot of energy into distinguishing themselves from their competitors. Whether it is creating a better product, providing better service or putting resources to use in a strategic manner, businesses know they must set themselves apart from competitors in order to turn a profit. From time to time, disputes arise between companies when these competitive advantages appear to be taken or used by competitors.
For instance, business litigation recently arose between two running and athletic apparel companies over the use of the name "Run Detroit." One company filed a lawsuit against the other based on claims of trademark infringement, false advertising, unfair competition and cybersquatting related to the use of the name and a website using the name.
The companies have now reportedly settled their dispute and entered into a tentative agreement setting out how the name can be used between the companies. Under the agreement, both companies can use the trademarked name, with one company granting the licensing of the name to the other for 10 years. The companies believe the agreement is a positive outcome for both sides.
The case illustrates how disputes over unfair competition and trademark infringement can be very serious. Litigation involving hundreds of thousands or millions of dollars is often commenced, although this does not necessarily mean the parties to that litigation must proceed all the way through a trial and appeals when an agreement is possible that will resolve the dispute. Ultimately, whether settlement or pursuing litigation is the best strategy will depend on what option is in the company's best interests and the circumstances of each particular case.
Source: Crain's Detroit Business, "Athletic apparel retailer, RunDetroit reach tentative agreement over use of name," Sherri Welch, Oct. 23, 2015
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