Olympic Rings in the Courtroom: USOC Takes onPrime Hydration Over Famous Trademarks
The United States Olympic & Paralympic Committee (“USOC”) recently filed a lawsuit in Colorado District Court against Prime Hydration LLC, a sports beverage company co-founded by social media influencer and wrestler Logan Paul. This legal battle centers around allegations that Prime Hydration is infringing on the USOC’s trademarks through an ad campaign featuring NBA star and Team USA member Kevin Durant. The case, United States Olympic & Paralympic Committee v. Prime Hydration LLC, case number 1:24-cv-02001, was filed in the U.S. District Court for the District of Colorado.
Background
The USOC, headquartered in Colorado Springs, Colorado, is a federally chartered corporation responsible for training and funding U.S. teams for various international competitions, including the Olympic Games. The committee relies significantly on licensing its trademarks for funding and has exclusive rights under the Ted Stevens Olympic and Amateur Sports Act to commercially exploit specific marks and symbols related to the Olympic movement in the United States. The USOC owns numerous federal trademarks covering the words OLYMPIC, GO FOR THE GOLD, TEAM USA as well as the use of the Olympic rings themselves.
Prime Hydration, based in Louisville, Kentucky, is accused of using the words “Olympic,” “Olympian,” “Team USA,” and “Going for the Gold” on its product packaging and in promotional materials. The USOC alleges that these actions constitute a deliberate and willful attempt to trade on its intellectual property without authorization.
The Allegations
The USOC’s complaint details multiple claims against Prime Hydration, including:
- Trademark Infringement and Dilution: The unauthorized use of USOC’s marks is likely to cause confusion among consumers, who may mistakenly assume a connection between Prime Hydration and the USOC.
- Unfair Competition: Prime Hydration’s actions are alleged to be in bad faith, aimed at capitalizing on the goodwill associated with the USOC’s marks.
- Violation of the Ted Stevens Olympic and Amateur Sports Act: This act grants the USOC exclusive rights to use and control specific Olympic-related marks in the U.S.
The complaint also highlights that on July 10, 2024, the USOC’s counsel contacted Prime Hydration requesting they cease the infringement. Despite this, Prime Hydration has not discontinued its use of the USOC’s intellectual property.
Legal Implications and Remedies Sought
The USOC is seeking both preliminary and permanent injunctions to prevent Prime Hydration from using the infringing trademarks. Additionally, the committee is requesting the court to:
– Award all profits from Prime Hydration’s Olympic ad campaign to the USOC.
– Order the recall of all products featuring the infringing trademarks.
– Compensate for damages related to the infringement, including harm to sponsorship agreements and the costs associated with placing USOC marks on products and in advertising.
The USOC argues that Prime Hydration’s use of these marks is likely to mislead consumers into believing there is an association with the USOC, which could damage the reputation and financial interests of the organization. This is especially critical as the USOC does not receive financial assistance from the U.S. government and relies heavily on the licensing of its trademarks for funding.
Broader Context and Precedent
This case underscores the importance of protecting intellectual property rights, particularly for organizations like the USOC that depend on their trademarks for funding and maintaining their operations. The exclusive control over Olympic-related marks is crucial for the USOC to generate revenue and support U.S. athletes.
Similar cases in the past, such as San Francisco Arts & Athletics, Inc. v. U.S. Olympic Committee, have reinforced the USOC’s rights under the Ted Stevens Act. In that case, the Supreme Court upheld the USOC’s exclusive rights to the term “Olympic,” highlighting the significant value and public recognition associated with the Olympic marks.
The lawsuit against Prime Hydration is a vital step for the USOC in safeguarding its intellectual property rights. The outcome of this case could have significant implications for how Olympic-related trademarks are protected and enforced in the future. As the Paris Summer Olympics approach, the resolution of this dispute will be closely watched by stakeholders in the sports and legal communities.
For more detailed information, you can review the full complaint filed by the USOC, here.
Holon Law Partners has 100+ years of experience combined guiding clients through complex cases and legal intricacies. Our approach is empathetic, customized, and client-centered with a focus on you and your unique business needs. To schedule a consultation with us, call our team at (866) 372-0726 or email us at: info@holonlaw.com.
