Ocean City's Seacrets has won a federal trademark infringement case against a competitor that was using a similar brand name to market its chain of luxury resorts. The decision in Baltimore's U.S. District Court awards the megaclub $50,000 in punitive damages and a permanent injunction protecting its 'Seacrets' trademark.
The lawsuit, filed two years ago, was an important one for the Maryland megaclub as its seeks to establish a franchise business and underscores its ambitions to expand outside the United States.
In 2008, the Coryn Group, which
operates AMR Resorts, sued Seacrets after the U.S. Trademark Trial and
Appeal Board canceled its federal registration of the trademark
"Secrets" for its luxury resort chain in Mexico and the Caribbean. The
board said the two brands were too similar.
countersued for infringement and unfair competition and after an
eight-day trial last November, a jury upheld its trademark and awarded
it $1 in compensatory damages and $265,000 in punitive damages.