On June 25, 2013, SmallBizPros, Inc. d/b/a Padgett Business Services (“Padgett”), with its principal place of business in Athens, Georgia, filed a complaint against Stephen G. Hunt (“Hunt”), of Marietta, Georgia, Right Path Tax and Accounting (“Right Path”), based in Dallas, Georgia, Ginger Sonnier and Leiah Harris, both of Dallas, Georgia, alleging Hunt violated his Franchise Agreement with Padgett by selling his franchise to his employees, Sonnier and Harris, who subsequently changed the name, but offered the same services trademarked by Padgett.
In May 1996, Padgett and Hunt entered into a written Franchise Agreement, which granted Hunt the right to operate a Padgett Business Services franchise in five Georgia counties. The Franchise Agreement gave Hunt access to Padgett’s trade secrets and manuals on how to operate a successful Padgett business. According to the complaint, around 2010, Hunt stopped making payments to Padgett and subsequently sold the franchise to his employees. Sonnier and Harris now operate Right Path in the same location where Padgett used to do business.” Padgett alleges that Right Path is representing to customers either that it is still affiliated with Padgett or, alternatively, that it is no longer affiliated. Padgett claims that either way Right Path is deceiving customers and engaging in unfair competition. Padgett further alleges trademark infringement, breach of contract, conversion and unjust enrichment.
On July 31, the Defendants filed a motion to dismiss or, alternatively, to transfer to a proper venue. They claim that venue is improper as none of the named Defendants reside in the Middle District of Georgia, nor did any of the events or omissions Plaintiff claims occurred take place in the Middle District. Defendants claim that they all live in the Northern District and further that the five Georgia counties covered by Hunt’s contract are all in the Northern District. Briefing on the motion is still ongoing.
On June 21, 2013, Home-Grown Industries of Georgia, Inc. d/b/a Mellow Mushroom (“Mellow Mushroom”), based in Atlanta, Georgia, filed a complaint against Danesh 2 Enterprises, Inc. (“Danesh Enterprises”), Ali Danesh, and Setareh Danesh (collectively “Danesh”) for trademark infringement, unfair competition and breach of contract, after Danesh continued to operate its franchise following a letter from Mellow Mushroom advising them that a Franchise Agreement between the parties had been terminated. In May 2012, Mellow Mushroom and Danesh entered into a Franchise Agreement in which Danesh was given the rights to use the Mellow Mushroom name and System to open a restaurant in San Antonio, Texas. According to the complaint, Danesh failed to keep the restaurant up to Mellow Mushroom’s standards. After notifying Danesh of their concerns several times and conducting follow up inspections, Mellow Mushroom terminated the Franchise Agreement.
On June 6, 2013, AT&T Intellectual Property II, L.P. (“AT&T”), based in Atlanta, Georgia and Aio Wireless LLC (“Aio Wireless”), based in Alpharetta, Georgia, filed suit against aioTV Inc. (“AIO”), based in Centennial, Colorado, seeking a declaratory judgment that the trademarks and service marks “Aio”, “Aio Wireless”, “aio” (Stylized) and “aio Wireless” (Stylized) (collectively, the “Aio Marks”) do not infringe on AIO’s claimed common law trademarks: “aio”, “aioTV”, “aio basic”, “aio cloud” and others (collectively, the “AIO Marks”).
Aio Wireless is a wireless voice, text and data service provider, who also sells mobile devices through independent dealers as well as online. AIO, on the other hand, focuses on television content by bundling licensed and unlicensed content and then selling it to service providers, who then offer on-demand television streaming to subscribers. This declaratory judgment action arose after AIO threatened to file suit against AT&T and Aio Wireless for trademark infringement and unfair competition in violation of the Lanham Act, and demanded they cease and desist from using the Aio Marks. AT&T and Aio Wireless refused to stop using the Aio Marks as the marks had already been approved and registered at the USPTO.
On June 27, 2013, Triple Play Foundation, LLC (“Always Baked”), based in Sandy Springs, Georgia, filed a complaint in the Northern District of Georgia against Insomnia Cookies, Inc. (“Insomnia”), based in New York, New York, seeing a declaratory judgment that Always Baked does not infringe any valid trademark of Insomnia.
Always Baked filed the complaint after Insomnia sent an cease and desist letter to Always Baked regarding their logo. Always Baked responded to the letter by way of the complaint. First, Always Baked argues that its logo in no way infringes Insomnia’s logo. Insomnia features a cookie in a half-moon configuration, with three stars, all surrounded by a circle; whereas Always Baked includes a caricature of a cookie with a pair of eyes, in which the cookie, in the form of a “G”, is depicted saying “Get Baked.” Second, Always Baked alleges that Insomnia’s trademark “insomnia cookies” should not have been registered as it is merely descriptive of the goods, i.e. cookies delivered to insomniacs. Always Baked asks the Court for a declaratory judgment that they have not infringed on any trademark of Insomnia, and further that Insomnia’s trademark registration be cancelled. Categories: Before 2017
Georgia IP Litigation 
A very good and informative article indeed. It helps me a lot to enhance my knowledge on trademark protection. Thanks for sharing.
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