Charities seek to secure their brand name and develop it. Finding a name that is distinctive and protecting it with the registration of a trademark can be critically important.
In 2007, Wounded Warrior Project became aware that its supporters were being misdirected to a competing website operated by Wounded Warriors, Inc. The organization secured the URL http://www.woundedwarriors.org.
Our firm, representing Wounded Warrior Project, contacted Wounded Warriors, Inc. and offered them a grant on behalf of our client to help them underwrite the cost of legally changing their name and transferring the URL to our client. They refused to take any steps to address the issue of confusion.
Wounded Warrior Project (hereinafter “WWP”) had spent a great deal time and effort building brand recognition. The organization’s achievements were chronicled on national television on numerous occasions. Viewers frequently “Googled” the phrase “wounded warriors” looking for WWP, but through inadvertence or mistake wound up on the wrong URL. When Wounded Warriors, Inc. refused to take any corrective action, a lawsuit was filed against Wounded Warriors, Inc. in federal court, Omaha, Nebraska, alleging violations of the Deceptive Trade Practices Act, the Nebraska Consumer Protection Act and for unjust enrichment.
After a hearing in July 2008, the court entered a preliminary injunction closing the website. Thereafter, through discovery, it was determined by a forensic accountant that as much as $1.265 million had been misdirected as a result of the confusion caused by the defendant.
Several attempts were made to resolve the case. It is unusual for a charity to sue another charitable organization. Numerous attempts were made to avoid trial, but the defendant refused to address the issues proactively. The case went to trial on Monday, September 21, 2009, before a jury. On Thursday afternoon, September 24, 2009, the case was sent to the jury. On Friday morning, the jury returned with its decision. The jury awarded WWP the sum of $425,000 under the Nebraska Consumer Protect Act and $1, 267, 719 in damages for unjust enrichment.
Charities that intend to grow need to secure their brand name and develop it. Finding a name that is distinctive and protecting it with the registration of a trademark can be critically important, as it was in this case.
In this extreme circumstance, WWP had no alternative but to proceed with the trial and the result is perhaps the largest judgment of its kind given in the nonprofit community. It was our privilege to be involved in this case.
For more information on these issues or this case contact Errol Copilevitz at: .(JavaScript must be enabled to view this email address).