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Sportsgrants v. Crossfit

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    Michael A. Cohen, OSB # 965776Email [email protected] R. Wilmot, OSB #061936Email [email protected], WILLIAMSON & WYATT, P.C.

    FILED :-=; Ft=''R ,.' :) " ' , .1 ~ ' .__- . ~ ~ .11- L:"lbIJ:;Dr-(f.:p

    1211 SW 5th Ave., Suite 1900Portland, OR 97204Telephone (503) 222-9981Fax (503) 796-2900

    Timothy J. Gorry, to be admitt ed Pro Hac ViceEmail [email protected] M. Joseph, to be admitted Pro Hac ViceEmail [email protected], KAHAN & GORRY, PC9601 Wilshire Boulevard, Suite 700Beverly Hills, CA 90210Telephone (310) 855-3200Fax (310) 855-3201

    Of Attorneys for Plaintiff, Sportsgrants, Inc.

    UNITED STATES DISTRICT COURT

    DISTRICT OF OREGON

    PORTLAND DIVISION

    SPORTSGRANTS, INC., an Oregoncorporation,

    Plaintiff,

    vs.

    CROSSFIT, INC., a Delawarecorporation; and DOES 1 through 10,inclusive,

    Defendants.

    Page 1 - COMPLAINT

    Civil No.CV'12 - 019 6 - ~ SI

    VERIFIED COMPLAINT FOR:1. TRADEMARK INFRINGEMENT2. COMMON LAW TRADEMARK

    INFRINGEMENT3. VIOLATION OF LANHAM ACT

    (15 U.S.C. 1 051, et seq.)4. VIOLATION OF LANHAM ACT

    (15 U.S.C. 43(c))5. ACCOUNTING

    JURY TRIAL DEMANDED

    SCHWABE . WIlliAMSON & WYAn. PC .Atlorneys al LawPacwest Center

    1211 SW 51h Ave .. Suile 1900 Portland . OR 97204

    Telephone 503 .222 .9981 Fa x 503 .796 .2900

    PDXl1198021J638011MAC /8887676.1

    1FL/5ZbI

    Case 3:12-cv-00196-SI Document 1 Filed 02/03/12 Page 1 of 22 Page ID#: 1

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    Plaintiff Sportsgrants, Inc. ("Sportsgrants") alleges the following against

    Defendant CrossFit, Inc., and Does 1 through 1 0 (collectively, "Defendants"):

    JURISDICTION AND VENUE

    1. This is an action for injunctive relief and damages arising under (i) the

    federal trademark laws and (ii) for false designation of origin under 15 U.S.C.

    1051, et seq. (the Lanham Act).

    2. This Court has original subject matter jurisdiction over the subject

    matter pursuant to Section 39 of the Lanham Act, 15 U.S.C. 1121, and under 28

    U.S.C. 1331 and 28 U.S.C. 1338, because the action arises, in part, under 15U.S.C. 1114 and 1125. This Court has supplemental jurisdiction over the non

    federal question claims pursuant to 28 U.S.C. 1367.

    3. Venue is proper in the United States District Court for the District of

    Oregon pursuant to 28 U.S.C. 1391(b), because a substantial part of the events

    giving rise to Sportsgrants' claims arose in Oregon and Plaintiff's principal place

    of business is located in Oregon.

    4. This Court has personal jurisdiction over the Defendants because, on

    information and belief, Defendants have engaged in acts or omissions within and

    outside the State of Oregon causing injury within the State of Oregon and has

    otherwise made or established contacts within the State of Oregon sufficient to

    permit the exercise of personal jurisdiction, including establishing and supporting

    numerous CrossFit "Affiliates" within the State of Oregon, as further alleged in

    Paragraph 10 below.

    SCHWABE, WILLIAMSON & W YA n , PC Attorneys at Law Pacwest Center

    1211 SW 5th Ave ., Suite 1900 Portland , OR 97204

    Telephone 503 .222.9981 Fax 503 .796 .2900

    Page 2 - COMPLAINT

    PDXJI19802l163801IMAC/8887676 .1

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    PARTIES

    5. Plaintiff Sportsgrants, Inc. ("Sportsgrants") is an Oregon not-for

    profit corporation, with its principal place of business in Hood River, Oregon.

    6. Sportsgrants is informed and believes and thereon alleges that

    Defendant CrossFit, Inc. ("CrossFit") is, and at all times mentioned herein was, a

    Delaware corporation, with its principal place of business in Washington DC.

    7. The true names and capacities of defendant DOES 1 through 1 0,

    whether individual, corporate, associate, or otherwise, are presently unknown to

    Sportsgrants who therefore sues said defendants by such fictitious names.

    Sportsgrants will seek leave of this Court to amend this complaint to show the truenames and capacities of said defendants when the same have been ascertained, or

    according to proof presented at trial.

    8. Sportsgrants is informed and believes and on that basis alleges that at

    all times mentioned herein, each of the defendants, including those sued as DOES

    1 through 10 (collectively, "Defendants"), was the agent of each of the remaining

    defendants, and in doing the things hereinafter alleged, was acting within the

    course and scope of such agency and with the permission, consent of and

    ratification by their co-defendants.

    GENERAL ALLEGATIONS

    9. CrossFit is in the business of offering fitness training services through

    its website, and also through gym facilities located throughout the United States,

    including in Oregon, and abroad.

    10. Sportsgrants is informed and believes and on that basis alleges that

    these gym facilities are independently owned and operated by what CrossFit refers

    SCHWABE, WILLIAMSON & WYAn, PCAttorneys al LawPage 3 - COMPLAINTPacwest Center

    1211 SW 51h Ave., Suile 1900 Portland, OR 97204

    Telephone 503.222.9981 Fax 503 .796 .2900

    PDXl1198021l638011MAC/8887676.1

    Case 3:12-cv-00196-SI Document 1 Filed 02/03/12 Page 3 of 22 Page ID#: 3

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    to as "Affiliates." The gym facilities that are owned and operated by Affiliates are

    referred to herein as an "Affiliate Gym" or "Affiliate Gyms."

    11. Scott Zagarino ("Mr. Zagarino") is the founder and Chief Executive

    Officer of Sportsgrants. All acts alleged herein to have been done by Mr. Zagarino

    were done in his capacity as Chief Executive Officer of Sportsgrants.

    12. Mr. Zagarino is a former professional athlete who, in 1988, was

    profoundly touched by his experience visiting a critical care unit for young adults.

    The effect of that experience changed the course of Mr. Zagarino's life.

    13. Since that time, Mr. Zagarino has been involved with various

    fundraising endeavors, and has worked tirelessly to create programs that haveraised millions of dollars to make a difference in the lives of those in need.

    14. In 2006, Mr. Zagarino was working on a more efficient and effective

    way to raise money for worthy causes .

    15. In or around the spring of2006, Mr. Zagarino and a friend completed

    a newly introduced workout called "Figh t Gone Bad" at an Affiliate Gym in Los

    Angeles. I t was during this workout in 2006 that Mr. Zagarino came up with the

    idea to create a fundraising event whereby athletes could collectively dedicate one

    day of the year to fundraising for charity by collecting donations online. The

    simplicity of the idea was especially appealing to Mr. Zagarino because the

    fundraising event would require little overhead or administrative costs, thereby

    leaving the vast majority of the donations to charity.

    16. In or around the spring of 2006, Mr. Zagarino came up with the idea

    to name the charity event "Fight Gone Bad," which was a phrase he first heard

    used by mixed martial arts champion B.J. Penn to describe a particularly tough and

    challenging workout designed for him.

    SCHWABE, WILLIAMSON & W YA n , P .C . Allomeys at Law Pacwesl Center

    1211 SW 51h Ave ., Suite 1900 Port land, OR 97204

    Telephone 503 .222 .9981 Fax 503 .796 .2900

    Page 4 - COMPLAINT

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    17. In September, 2006, Mr. Zagarino sponsored and promoted the first

    "Fight Gone Bad" for charity. Mr. Zagarino produced the entire event himself by,

    among other things, tirelessly calling local Affiliate Gyms to ask i f they would

    participate.

    18. Participants collectively dedicated this one day o f the year to

    soliciting and collecting online donations. Participation in and donations for the

    event were not contingent upon completing a workout; the participants needed only

    to attempt to complete a workout.

    19. The first Fight Gone Bad for charity included approximately 324

    participants at approximately 30 Affiliate Gyms. The event raised approximatelyOne Hundred Seventeen Thousand Three Hundred Eleven Dollars ($117,311), one

    hundred percent of which was donated to charity.

    20. Neither Greg Glassman (who is a principal of CrossFit), nor anyone

    else employed by CrossFit, had any communications with Mr. Zagarino regarding

    the 2006 Fight Gone Bad charity event. Likewise, neither Greg Glassman, nor

    anyone else employed by CrossFit, contributed in any way to the production,

    promotion, or advertising of the 2006 Fight Gone Bad charity event.

    21. The success of the first Fight Gone Bad event caused Mr. Zagarino to

    endeavor to tu m Fight Gone Bad into an annual fundraising event, as described in

    Paragraph 18, above.

    22. In furtherance of this objective, in 2007 Mr. Zagarino formed

    Sportsgrants and, at that time, assigned all his intellectual property rights to the

    Fight Gone Bad charity event to Sportsgrants.

    23. Fight Gone Bad 2 for charity took place in September 2007 and was

    exclusively produced by Sportsgrants, through the tireless work of Mr. Zagarino,

    acting as the Executive Director. Approximately 900 people at approximately 60

    SCHWABE , WILLIAMSON & WYATT , PC Allorneys at Law Pacwesl Cenler

    1211 SW 51h Ave ., Suite 1900 Portland, OR 97204

    Te lephone 503.222.9981 Fa x 503.7962900

    Page 5 - COMPLAINT

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    Affiliate Gyms participated in the event, which raised over Two Hundred Eighty

    Three Thousand Seven Hundred Dollars ($283,700) for the benefit of charity by

    collecting donations online on a website designed and owned by Sportsgrants.

    24. Neither Greg Glassman, nor anyone else employed by CrossFit, had

    any communications with Mr. Zagarino regarding the 2007 Fight Gone Ba d charity

    event. Likewise, neither Greg Glassman, nor anyone else employed by CrossFit,

    contributed in any way to the production, promotion, or advertising of the 2007

    Fight Gone Ba d charity event.

    25. Prior to the third annual Fight Gone Bad for charity, Mr. Zagarino

    contacted executives at CrossFit to ask i f CrossFit would support the event.CrossFit declined.

    26. Thereafter, the Fight Gone Bad 3 for charity took place in September

    2008 and was exclusively produced by Sports grants, again, through the tireless

    work o f Mr. Zagarino. Approximately 2,400 people at approximately 200 Affiliate

    Gyms and elsewhere participated in the event, including, Affiliate Gyms in

    Canada. As a result o f the efforts of Sports grants and Mr. Zagarino, the third

    annual Fight Gone Bad event raised a total o f approximately Six Hundred Twenty

    Seven Thousand Dollars ($627,000) for charity.

    27. Neither Greg Glassman, nor anyone else employed by CrossFit, had

    any communications with Mr. Zagarino regarding the 2008 Fight Gone Bad charity

    event. Likewise, neither Greg Glassman, nor anyone else employed by CrossFit,

    contributed in any way to the production, promotion, or advertising o f the 2008

    Fight Gone Bad charity event.

    28. In or around 2009, CrossFit contacted Mr. Zagarino to seek his

    assistance with forming CrossFi t's own charitable foundation ("CrossFit

    Foundation"). Mr. Zagarino obliged.

    SCHWABE , WILLIAMSON & WYATI, P.C . Attomeys at Law Pacwest Center

    1211 SW 5th Ave ., Suite 1900 Portland, OR 97204

    Telephone 503 .222 .9981 Fax 503.796.2900

    Page 6 - COMPLAINT

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    29. Fight Gone Bad 4 for charity took place in September 2009 and was

    exclusively produced by Sportsgrants, again, through the tireless work o f

    Mr. Zagarino. Approximately 5,200 people at approximately 365 Affiliate Gyms

    and elsewhere participated in the event, including Affiliate Gyms and other

    facilities located internationally. As a result o f the efforts o f Sportsgrants and Mr.

    Zagarino, the fourth annual Fight Gone Bad event raised a total o f approximately

    One Million One Hundred Thousand Dollars ($1,100,000).

    30. For the first time, CrossFit agreed to include and did include a few

    notices about Fight Gone Bad 4 on its website and Facebook page. Sportsgrants is

    informed and believes and on that basis alleges that CrossFit's cooperation wasdirectly related to the fact that Mr. Zagarino voluntarily assisted with efforts to

    create the CrossFit Foundation, as alleged in Paragraph 28, above.

    31. In early 2010, during a conference call for the CrossFit Foundation in

    which Mr. Glassman and Mr. Zagarino were both participants, Mr. Glassman

    indicated that he would like for CrossFit to have more control over the annual

    Fight Gone Bad charity event. After discussion with others on the call, including

    other principals of CrossFit, Mr. Glassman retracted his statement, and conceded

    that it was proper for the event to be produced by Sportsgrants.

    32. Shortly thereafter, Mr. Zagarino entered into discussions with

    principals at CrossFit regarding a potential assignment and license deal whereby

    Sports grants would assign its Fight Gone Bad common law trademark rights to

    CrossFit in exchange for a long term renewable license o f the trademark back to

    Sportsgrants. Those discussions did not culminate in an agreement between the

    parties.

    33. In or around August, 2010, Sportsgrants filed an application for

    registration of the Fight Gone Bad mark with the United States Patent and

    SCHWABE, WILLIAMSON & WYATT , P.C. Attorneys at Law Pacwest Center

    1211 SW 5th Ave " Suite 1900 Portland, OR 97204

    Te lephone 5 03 .222.9981 Fa x 503.796 .2900

    Page 7 - COMPLAINT

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    Trademark Office ("USPTO"), in International Classes 35 and 36, specifically for

    "charitable services, namely, organizing and conducting charitable athletic events

    that promote public awareness of the importance o f fundraising for charities," and

    "charitable fundraising services, namely, organizing and conducting athleticfundraising events for charities."

    34. Sportsgrants is informed and believes and on that basis alleges that

    CrossFit, specifically, those on the board of directors of the CrossFit Foundation,

    were aware that Sportsgrants filed an application to register the Fight Gone Bad

    trademark.

    35. Prior to the fifth annual Fight GoneBad

    for charity, Mr. Zagarinocontacted executives at CrossFit to again request that CrossFit support the event.

    CrossFit again declined to provide the specific support requested by Mr. Zagarino

    on behalf o f Sportsgrants.

    36. In or about September 2010, the fifth annual Fight Gone Bad charity

    event took place with over 6,750 participants from over 600 Affiliate Gyms and

    other facilities. Fight Gone Bad 5 helped raise nearly One Million Five Hundred

    Thousand Dollars ($1,500,000) for charity, including Two Hundred Thousand

    ($200,000) donated directly to the CrossFit Foundation.

    37. Other than to include a few posts on CrossFit's blog and Facebook

    page about Fight Gone Ba d 5, neither Greg Glassman nor anyone else employed

    by CrossFit contributed to the production, promotion, or advertising of the 2010

    Fight Gone Bad charity event.

    38. In or around August, 2011, S ports grants trademark was registered

    with the USPTO on the Principal Register under the Act of 1946 (U.S. Registration

    No. 4,017,046), covering the use o f the mark in International Class 35 for

    "charitable services, namely, organizing and conducting charitable athletic events

    SCHWABE , WILLIAMSON & WYAn, PC Attorneys at Law Pacwest Center

    1211 SW 51h Ave. , Su ite 1900 Portland, OR 97204

    Telephone 503.222 .9981 Fa x 503 .796.2900

    Page 8 - COMPLAINT

    PDXll198021J 6380) IMACl8887676.1

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    that promote public awareness o f the importance of fundraising for charities" and

    in Class 36 for "charitable fundraising services, namely, organizing and conducting

    athletic fundraising events for charities." True and correct copies of the USPTO's

    TESS and T AR R records of that registration are attached hereto as Exhibit A. This

    trademark registration is valid and subsisting.

    39. In or about March, 2011, Mr. Zagarino was elected as the executive

    director of the board of directors for the CrossFit Foundation. During weekly

    conference calls, Mr. Zagarino made requests for support and assistance from

    CrossFit for Sportsgrants' Fight Gone Bad charity event. With only a few

    exceptions, CrossFit either rejected or ignored those requests.40. In or about September 2011, the sixth annual Fight Gone Bad

    charity event took place with over 16,438 participants at approximately 1,080

    Affiliate Gyms and other facilities in 16 countries around the world. Fight Gone

    Bad 6 raised approximately Two Million Three Hundred Thousand Dollars

    ($2,300,000) for charity, including Six Hundred Thousand Dollars ($600,000)

    donated directly to the CrossFit Foundation.

    41. After the conclusion of the sixth annual Fight Gone Bad event,

    Sportsgrants announced that the next Fight Gone Bad charity event would take

    place on September 22,2012.

    42. Shortly thereafter, Sportsgrants was made aware of a series of

    charitable events purportedly called "Fight Gone Bad." One such event was

    scheduled to take place in the city of London, Ontario Canada, and the other was

    scheduled to take place in the city of Atlantic Beach, Florida. Sportsgrants is

    informed and believes and on that basis alleges that these events were modeled

    after the Fight Gone Bad charity event created and produced by Sportsgrants.

    Sportsgrants is further informed and believes and on that basis alleges that these

    SCHWABE, WILLIAMSON & WYATT , P CAllomeys al La wPage 9 - COMPLAINTPacwe s t Cente r

    12 11 SW 5 th Ave ., Su ite 1900 Portland , OR 97204

    Telephon e 503 .222 .9981 Fa x 503 .796 .2900

    PDXl119802 / 1638011MAC/8887676 ,I

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    events are similar, i f not identical, to those created and produced by Sportsgrants,

    except that they are produced by different persons and/or entities, and having no

    affiliation with Sportsgrants.

    43. At no time did Sportsgrants give any other person or entity permission

    to utilize its trademark. Accordingly, Sportsgrants immediately notified the

    infringing parties of its trademark and requested that they immediately cease and

    desist from further use of the name Fight Gone Bad in connection with any charity

    event.

    44. Sportsgrants is infonned and believes and on that basis alleges that in

    January, 2012, CrossFit began to advertise and promote in emails and elsewherethat, "This year's Fight Gone Bad will be held in June this year and will fund

    childhood illness."

    45. Sportsgrants is also infonned and believes and on that basis alleges

    that in January, 2012, persons on behalf of Cross Fit began placing telephone calls

    and sending emails to Affiliate Gyms to advertise and promote a "new Fight Gone

    Bad" that will be produced by CrossFit, which has "taken out the middle man"

    by removing Sportsgrants.

    46. At all times relevant hereto, CrossFit was entirely aware o f

    Sportsgrants' use of the name Fight Gone Bad for charity events, and was fully

    aware that Sportsgrants owns the federally protected trademark Fight Gone Bad

    in International Class 35 and 36.

    47. CrossFit's use of the Fight Gone Bad trademark in connection with

    charitable events is without the consent of Sportsgrants. Moreover, Sportsgrants is

    informed and believes and on that basis alleges that, as of the date of this

    Complaint, CrossFit continues to use Sportsgrants' trademark without the

    permission or consent of Sportsgrants.

    SCHWABE, WILLIAMSON & WYATT , PC Atto m eys at Law Pacwest Center

    1211 SWSthAve ., Suite 1900 Portland, OR 97204

    Te lephone 5 03.222.9981 Fax 5 0 3.796 .2900

    Page 10 - COMPLAINT

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    FIRST CLAIM FO R RELIEF

    (For Trademark Infringement Against All Defendants, 15 U.S.C. 1114)

    48. Sports grants incorporates herein by this reference the allegations in

    paragraphs 1 through 47, inclusive, as though set forth in full.

    49. Sportsgrants adopted the Fight Gone Bad mark and used it in

    interstate commerce as a means to identify its charity events.

    50. Since on or about September 2006, and continually since that time,

    Sportsgrants has used the mark Fight Gone Bad to identify its charity events and

    to distinguish it from those charity events held by others by, among other things,prominently displaying the Fight Gone Bad mark on Sportsgrants' website and

    on promotional items such as t-shirts and hoodies, which participants "earn" by

    raising certain amounts o f dollars for charity. In addition, Sportsgrants has used

    the Fight Gone Bad mark in company literature and advertising. These goods

    and advertising using the Fight Gone Bad mark have been distributed throughout

    the United States and beyond.

    51. The Fight Gone Bad mark is widely recognized all over the world.

    Among other things, participants in the charity event proudly wear the t-shirts and

    hoodies earned as a result of successful fundraising efforts and, therefore, the mark

    has come to be a symbol of Sportsgrants' global fundraising efforts.

    52. Defendants have infringed on Sportsgrants' Fight Gone Bad mark in

    interstate commerce by engaging in the acts descr ibed in this Complaint. The use

    of the Fight Gone Bad mark by Defendants is without permission or authority o f

    Sportsgrants, and such use by Defendants is likely to cause confusion, to cause

    mistake and to deceive.

    SCHWABE , WILLIAMSON & W YA n , PC Attomeys al Law Pacwest Center

    1211 SW 51h Ave., Suile 1900 Portland, OR 97204

    Telephone 503.22 2. 9981 Fax 503 .796 ,2900

    Page 11 - COMPLAINT

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    53. Defendants' alleged acts of trademark infringement have been

    committed with the intent to cause confusion, to cause mistake and to deceive.

    54. Sportsgrants has requested that Defendants cease and desist from their

    acts of trademark infringement and has given Defendants actual notice of

    Sportsgrants' trademark registrations, but Defendants have refused to cease such

    acts.

    55. Unless enjoined and restrained, Defendants will continue to actively

    infringe Sportsgrants' trademark rights.

    56. By reason o f Defendants' infringement and threatened infringement,

    Sports grants has sustained and will continue to sustain substantial injury, loss anddamage to the ownership rights in its trademarks.

    57. Further irreparable harm to Sportsgrants is imminent as a result of

    Defendants' conduct, and Sportsgrants is without an adequate remedy at law.

    Sportsgrants is entitled to an injunction restraining Defendants, their officers,

    directors, agents, employees, representatives and all persons acting in concert with

    them from engaging in further such acts o f trademark infringement.

    58. Sportsgrants is further entitled to recover from Defendants the

    damages sustained by Sportsgrants as a result o f Defendants , acts of trademark

    infringement. Sportsgrants is at present unable to ascertain the full extent o f the

    monetary damage Sportsgrants has suffered by reason o f Defendants' acts of

    trademark infringement. Sportsgrants will seek leave o f this Court to amend this

    Complaint to allege the true and correct amount of its damages, including interest,

    when they become known and/or Sportsgrants will prove such damages at trial.

    59. Sportsgrants is further entitled to recover from Defendants the gains,

    profits and advantages they have obtained as a result o f their acts o f trademark

    infringement. Sportsgrants is at present unable to ascertain the full extent of the

    SCHWABE , WILLIAMSON & W YA n , P .C. Attorneys at Law Pacwest Center

    1211 SW 5th Ave ., Su ite 1900 Port land , OR 97204

    Telephone 503 .222 .9981 Fax 503.796 .2900

    Page 12 - COMPLAINT

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    gains, profits and advantages Defendants have obtained by reason of their acts of

    trademark infringement. Sportsgrants will seek leave of this Court to amend this

    Complaint to allege the true and correct amount of its damages, including interest,

    when they become known and/or Sportsgrants will prove such damages at trial.

    SECOND CLAIM FOR RELIEF

    (For Common Law Trademark Infringement Against All Defendants)

    60. Sportsgrants incorporates herein by this reference the allegations in

    paragraphs 1 through 59, inclusive, as though set forth in full.

    61. Defendants' acts alleged above constitute infringement,misappropriation, dilution, and misuse of Sportsgrants Fight Gone Bad

    trademark, conversion of Sports grants , intellectual property and unjust enrichment

    of Defendants, all in violation of Sportsgrants' rights under the common law of

    Oregon.

    62. Defendants' alleged acts of trademark infringement and unfair

    competition are likely to cause confusion, to cause mistake and to deceive as to

    affiliation, connection or association with Sportsgrants, or as to origin, sponsorship

    or approval of others ' services by Sports grants and are likely to dilute the quality

    of Sportsgrants' trademark.

    63. Defendants' activities have been willful. Defendants' activities have

    caused great and irreparable harm to Sportsgrants. Defendants' activities will not

    cease unless enjoined by this Court. Sportsgrants has no adequate remedy at law.

    SCHWABE, WILLIAMSON & WYATI, P .C Allomeys at Law Pacwest Center

    1211 SW 5th Ave . Suite 1900 Portland, OR 97204

    Telephone 503 .222 .9981 Fax 503.796.2900

    Page 13 - COMPLAINT

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    THIRD CLAIM FOR RELIEF

    (For Violation of The Lanham Act By Use Of False

    Designation Against All Defendants, 15 U.S.C. 1125(a))

    64. Sportsgrants incorporates herein by this reference the allegations in

    paragraphs 1 through 63, inclusive, as though set forth in full.

    65. Defendants threaten to profit from the interstate exploitation o f "Fight

    Gone Bad." Such use o f Fight Gone Bad is a false designation o f origin which is

    likely to cause confusion, to cause mistake and to deceive as to the affiliation,

    connection or association of Defendants with Sportsgrants, and as to the origin,

    sponsorship or approval o f such name by Sportsgrants. These acts are in violationof 15 U.S.C. 1125(a), in that Defendants have used in connection with goods and

    services a false designation o f origin, a false or misleading description and

    representation o f fact which is likely to cause confusion, and to cause mistake, and

    to deceive as to the affiliation, connection, or association of defendants with

    Sportsgrants and as to the origin, sponsorship and approval o f Defendants' goods,

    services and commercial activities by Sportsgrants.

    66. By reason o f Defendants , acts alleged herein, Sportsgrants has and

    will suffer damage to its business, reputation and good will and the loss o f sales

    and profits Sportsgrants would have made but for Defendants' acts. Sportsgrants is

    entitled to recover damages for Defendants' actions.

    67. Defendants threaten to continue to do the acts complained of herein,

    and unless restrained and enjoined, will continue to do so, all to Sportsgrants'

    irreparable damage. It would be difficult to ascertain the amount o f compensation

    which could afford Sportsgrants adequate relief for such continuing acts, and a

    multiplicity o f judicial proceedings would be required. Sportsgrants' remedy at

    law is not adequate to compensate it for injuries threatened.

    SCHWABE, WILLIAMSON & WYATT, P .C.Attomeys at Lawage 14 - COMPLAINTPacwest Center

    1211 SW5thAve ., Suite 1900 Portland, OR 97204

    Telephone 503 .222.9981 Fax 503 .796 .2900

    PDXJ 119802116380 IIMAC/8887676.1

    Case 3:12-cv-00196-SI Document 1 Filed 02/03/12 Page 14 of 22 Page ID#: 14

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    FOURTH CLAIM FOR RELIEF

    (For Violation o f The Lanham Act By Dilution

    In Violation Of Federal Anti-Dilution Statute Against All Defendants,

    15 U.S.C. 1125(c))

    68. Sportsgrants incorporates herein by this reference the allegations in

    paragraphs 1 through 67, inclusive, as though set forth in full.

    69. Defendants have made commercial use o f a mark owned by

    Sportsgrants in connection with charitable events which Defendants have used and

    transported in United States interstate commerce. Defendants' acts are in violation

    o f Lanham Act 43(c) in that they have caused dilution o f the distinctive quality ofSportsgrants' famous mark Fight Gone Bad, all to the irreparable injury to, and

    damage of, Sportsgrants.

    70. Defendants' acts have lessened the capacity o f Sports grants' famous

    mark to identify and distinguish the charitable events produced and sponsored by

    Sportsgrants. Defendants' acts have blurred the unique association which has

    heretofore existed between Sportsgrants' Fight Gone Bad mark and the charitable

    events promoted and produced by Sportsgrants.

    71. Sportsgrants' Fight Gone Bad mark is distinctive and famous. The

    Fight Gone Bad mark is inherently strong and distinctive, has long been used in

    connection with the events in association with which it appears, has long been the

    subject o f substantial advertising and promotion, has been used and advertised

    throughout the United States and elsewhere, is widely recognized by consumers

    and those in the trade, is in substantially exclusive use, and is federally registered,

    as alleged above. The acts o f Defendants alleged in this Complaint were

    commenced and committed from a time after Sportsgrants' marks became famous.

    SCHWABE , WILLIAMSON & W YA n , P.C. Attomeys at Law Pacwest Center

    1211 SW 5th A ve ., Suite 1900 Portland, OR 97204

    Telephone 503 .222 .9981 Fax 503 .796 .2900

    Page 15 - COMPLAINT

    PDXlI1 9802 / 163801IMAC /8887676.]

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    72. Defendants committed these acts willfully and with the intent to trade

    on the reputation o f Sportsgrants and to cause dilution o f Sportsgrants' famous

    mark.

    73. By reason of Defendants' acts alleged herein, Sportsgrants has and

    will suffer damage to its business, reputation and good will and the loss o f

    charitable donations and profits made by Sports grants. Sportsgrants is entitled to

    recover damages for Defendants' actions.

    74. Defendants threaten to continue to do the acts complained of herein,

    and unless restrained and enjoined, will continue to do so, all to Sportsgrants'

    irreparable damage. I t would be difficult to ascertain the amount o f compensationwhich could afford Sportsgrants adequate relief for such continuing acts, and a

    multiplicity o f judicial proceedings would be required. Sportsgrants' remedy at

    law is not adequate to compensate it for injuries threatened.

    FIFTH CLAIM FO R RELIEF

    (F or An Accounting Against All Defendants)

    75. Sportsgrants incorporates herein by this reference the allegations in

    paragraphs 1 through 74, inclusive, as though set forth in full.

    76. Sportsgrants is informed and believes and on that basis alleges that,

    based upon the actions o f Defendants alleged herein, Defendants have received

    money which is due and payable to Sportsgrants.

    77. The total amount o f money due from Defendants is unknown to

    Sportsgrants and cannot be ascertained without an independent accounting of all

    proceeds received by Defendants with respect to the transactions herein alleged.

    78. Sportsgrants has demanded an independent accounting from

    Defendants regarding the aforementioned acts, but Defendants have failed and

    SCHWABE, WILLIAMSON & WYATT, PCAllomeys at Lawage 16 - COMPLAINTPacwest Center

    1211 SW 5th Ave., Suite 1900 Portland, OR 97204

    Telephon e 503.222.9981 Fax 503 .796.2900

    PDXJI198021l63801IMAC/8887676.1

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    refused, and continue to fail and refuse, to render an independent accounting and

    pay such sum.

    WHEREFORE, Plaintiff prays for relief as follows:

    FIRST CLAIM FOR RELIEF

    (For Trademark Infringement Against All Defendants)

    1. That Defendants and their agents, servants, employees, licensees and

    all persons acting in concert or participation with them, and each of them, be

    enjoined preliminarily and during the pendency of this action, and permanently

    thereafter; from:a. Infringing Sportsgrants' trademark; and

    b. Producing, manufacturing, adapting, marketing, advertising,

    selling, distributing, promoting, licensing, exhibiting or

    displaying or using in any manner Sportsgrants' trademark in

    connection with any charity event.

    2. That Defendants be required to account for and pay over to

    Sportsgrants all gains, profits and advantages which they have derived from their

    infringement of Sportsgrants' trademark; alternatively, and at Plaintiff's election,

    for statutory damages pursuant to 15 U.S.C. 1117( c) up to $2 million per

    counterfeit mark per type of goods or services sold, offered for sale, or distributed

    by Defendants.

    3. That Defendants be required to pay such relief to Sportsgrants as this

    Court deems just and proper.

    SCHWABE , WILLIAMSON &W YA n , P .C. Attorneys at Law Pacwest Cen ter

    1211 SW 5th Ave ., Suite 1 90 0 Portland , OR 9 7 2 0 4

    Telephone 503.222 .9961 Fax 503 .796 .2900

    Page 17 - COMPLAINT

    PDXl11980211638011MAC / 8887676.J

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    SECOND CLAIM FO R RELIEF

    (For Common Law Trademark Infringement Against All Defendants)

    4. That Defendants and their agents, servants, employees, licensees and

    all persons acting in concert or participation with them, and each of them, be

    enjoined preliminarily and during the pendency of this action, and permanently

    thereafter; from:

    a. Infringing Sportsgrants' trademark; and

    b. Producing, manufacturing, adapting, marketing, advertising,

    selling, distributing, promoting, licensing, exhibiting or

    displaying or using in any manner Sportsgrants' trademark inconnection with any charity event.

    5. That Defendants be required to account for and pay over to

    Sportsgrants all gains, profits and advantages which they have derived from their

    infringement of Sportsgrants' trademark.

    6. That Defendants be required to pay such relief to Sportsgrants as this

    Court deems just and proper.

    THIRD CLAIM FOR RELIEF

    (For Violation of The Lanham Act For False Designation

    Against All Defendants)

    7. That Defendants and their agents, servants, employees, licensees and

    all persons acting in concert or participation with them, and each of them, be

    enjoined preliminarily and during the pendency of this action, and permanently

    thereafter, from:

    a. Infringing Sports grants trademark;

    SCHWABE. WILLIAMSON & WYAn. PC Attorneys at Law Pacwest Center

    1211 SW 5th Ave . Suite 1900 Portland , OR 97204

    Telephone 503.222 .9981 Fax 503 .796 .2900

    Page 18 - COMPLAINT

    PDXllI9802 / 163801IMAC /8887676.1

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    b. Producing, manufacturing, adapting, marketing, advertising,

    selling, distributing, promoting, licensing, exhibiting or

    displaying or using in any manner Sportsgrants' trademark in

    connection with charity events;

    c. Competing unfairly with Plaintiff in any manner.

    8. That Defendants be required to account for all gains, profits and

    advantages which they have derived from their infringement o f Sports grants ,

    trademarks.

    9. That Plaintiff be awarded Defendants' profits, treble Plaintiffs

    damages, together with prejudgment and post-judgment interest, and reasonableattorney's fees and costs o f suit.

    10. That Defendants be required to pay such relief to Sportsgrants as this

    Court deems just and proper.

    FOURTH CLAIM FO R RELIEF

    (F or Violation of The Lanham Act By Dilution

    Against All Defendants)

    11. That Defendants and their agents, servants, employees, licensees and

    all persons acting in concert or participation with them, and each of them, be

    enjoined preliminarily and during the pendency o f this action, and permanently

    thereafter, from using the name "Fight Gone Bad", or any other mark, word, or

    name similar to Plaintiffs mark which are likely to cause confusion, mistake or to

    deceive.

    12. That Defendants be required to account to Plaintiff for any and all

    profits derived by Defendants from the sale of their goods and for all damages

    SCHWABE , WILLIAMSON & WYATT, PC Attorneys at Law Pacwest Center

    t211 SW 5th Ave., Suit e 1900 Portland , OR 97204

    Telephone 503.222 .9981 Fax 503 .796 .2900

    Page 19 - COMPLAINT

    PDXll19802/163801 / MAC / 8887676 1

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    sustained by Plaintiff by reason of said acts of infringement and unfair competition

    complained of herein.

    13. That Plaintiff be awarded Defendants' profits, treble Plaintiffs

    damages, together with prejudgment and post-judgment interest, and reasonable

    attorney's fees and costs of suit.

    14. That Defendants be required to pay such other relief to Plaint iff as this

    Court deems just and proper.

    FIFTH CLAIM FOR RELIEF

    (For Accounting Against All Defendants) 15. F or a complete accounting of all gains, profits and advantages derived

    by Defendants from their wrongful acts.

    ON ALL CLAIMS

    (Against All Defendants)

    16. F or attorneys' fees incurred herein pursuant to the Lanham Act.

    17. For costs of suit and disbursements.

    18. For such other relief as this Court deems just and proper.

    SCHWABE , WILLIAMSON & WYAn, PCAtlomeys at Lawage 20 - COMPLAINTPacwest Center

    1211 SW5thAve., Suite 1900 Portland, OR 97204

    Telephone 503 .22 2.9981 Fax 503 .796 .2900

    PDXll19802 / 163801fMAC/8887676I

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    Plaint iff requests trial by jury on all i ssues so triable.

    Dated this 3rd day o f February, 2012.

    Respectfully submitted,

    SCHWABE, WILLIAMSON & WYATT,P.C.

    By: ILL/J ~ JMichael A. Cohen, OSB # 965776Matthew R. Wilmot, OS B #061936Telephone 503.222.9981

    Of Attorneys for Plaintiff, Sports grants, Inc.

    SCHWABE, WILLIAMSON & W YA n , PCAttomeys at Lawage 21 - COMPLAINTPacwest Center

    1211 SW 5th Ave ., Su ite 1900 Portland, OR 97204

    Telephone 503 .222 ,9981 Fax 503.796 .2900

    PDXl119802/1638011MAC /8887676.1

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    VERIFICATION OF COMPLAINT

    I, Scott Zagarino, am the Chief Executive Officer of Sportsgrants, Inc., and am

    authorized to execute this Verification in that capacity. I have read the foregoing

    Complaint, and verify that the factual allegations therein are true and correct, and as

    to those allegations alleged on information and belief, I believe them to be true and

    correct.

    I declare under penalty of perjury under the laws of the United States and the

    State of Oregon that the foregoing is true and correct. Executed this Z day of

    February, 2012, at Portland, Oregon.

    t bhief Executive Officer,

    Sportsgrants, Inc.

    Case 3:12-cv-00196-SI Document 1 Filed 02/03/12 Page 22 of 22 Page ID#: 22


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